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 week's episode we take a first look at the UAW strike at 14 of Deere's U.S. facilities. In the Technology Corner, Michaela Paukner examines Kubota's planned acquisition of AgJunction for $72.8 million. Also in this episode, California Gov. Gavin Newsom has signed a bill that will ban gas-powered small-off road engines. Ben Thorpe reports on dealers early orders heading into 2022, based on the results of Ag Equipment Intelligence's Dealer Business Outlook & Trends report. Art's Way reported its second straight profitable quarter, and saw Agriculture Products segment sales for the third quarter improve by 27% vs. last year.