Deere's production and precision agriculture sales increased for the quarter due to price realization and higher shipment volumes. Operating profit rose primarily due to price realization and higher shipment volumes/sales mix.
In a July 2020 note to investors, Mircea (Mig) Dobre, discussed how the shares of farm equipment manufacturers had held up compared to other machinery companies despite difficult industry fundamentals.
While some positive signs are emerging for large equipment sales in the production segment of the agricultural industry, sales of small equipment and other rural lifestyle products is where the real action is these days. In addition to the record-setting sales of compact tractors, other segments of this market are also booming.
Deere & Co. reported consolidated net sales and revenues of $8.9 billion during its third quarter ended Aug. 2, 2020 vs. $10 billion in the same period a year earlier, a decline of 11%. Equipment operations came in at $7.9 billion during the period compared to nearly $9 billion last year, also a drop off of 12%.
According to published reports, John Deere has signed an agreement to sell SABO Maschinenfabrik to Mutares SE & Co. The transaction is contingent on regulatory approval by the Federal Cartel Office Bundeskartellamt, Germany's national competition regulator.
The Deere Smart Industrial strategy is designed to unlock new value for customers and to help them become more profitable and sustainable, while simultaneously revolutionizing the agriculture and construction industries through the rapid introduction of new technologies.
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In this episode of On the Record we take a look at the how dealer optimism has continued to fall, hitting a near record low, in May. In the Technology Corner Michaela Paukner follows up her last segment with a look at AGCO’s tech stack. We also discuss the California’s Occupational Safety & Health Standards Board’s rejection of a petition to amend a 70s era regulation limiting autonomous equipment. Also in this episode a look at Kubota’s dealer development plans and the full-line and tractor manufacturer results of EDA’s dealer manufacturer relations report.