Worldwide net sales and revenues at Deere & Co. decreased by 11 percent for the quarter ended Aug. 2 and declined 12 percent for the first nine months of the fiscal year.
CEO and Board Chairman John May said in a news release that the company “delivered a strong performance in the third quarter in the face of a serious global pandemic and uncertain market conditions.”
“Thanks to aggressive measures taken early in the crisis,” he said, “we have had success keeping our employees safe, our factories and parts centers functioning, and our customers served.”
Company officials provided specifics on some of the steps taken this fiscal year as it embarks on a corporate reorganization, or its Smart Industrial Redesign.
Deere plans to spend $435 million this fiscal year on one-time moves, such as $138 million for salaried-employee buyouts and $175 million on salaried-employee reductions. Other cost saving measures include shutting down a small tractor manufacturing facility in China, a $37 million cost for the current fiscal year, and selling a lawn-mowing business in Europe.
Those moves are projected to save about $260 million on an annual basis going forward.
The other aspect of the reorganization is a focus on precision ag. Deere seeks to position itself as the Apple of ag.
Deere’s projected net income for the year has shifted amid the extraordinary circumstances of 2020. In February, it was between $2.7 billion and $3.1 billion. In May, the company revised the projection to $1.6 billion and $2 billion. Deere’s net income projection as of August is about $2.25 billion.
Source: Quad-City Times