08:38 AM EDT, 08/15/2024 (MT Newswires) -- Deere & Co. ( DE ) maintained its guidance for full-year net income on Thursday even as fiscal third-quarter results declined annually but still topped Wall Street's expectations.

The maker of tractors, mowers, and combines sees 2024 net income of $7 billion, just ahead of the consensus on Capital IQ for $6.94 billion. Net income dropped 42% in the most recent quarter to $1.73 billion, but that was still ahead of the Street's view for $1.6 billion. The stock was up almost 3% pre-market.

"In response to weak market conditions, we have taken steps to reduce costs and strategically align our production with customer needs," Chief Executive John May said in a statement. "Although these decisions were difficult, they are vital for our continued success and competitiveness."

CNN reported last month that Deere is cutting 600 jobs at three manufacturing plants in the US as it shifts production to a new facility in Mexico.

Deere still sees declines across its industries this year, although it widened the forecast for the sales slide in construction and forestry to a range of 10% to 15% from a drop of 5% to 10% projected earlier. Production and precision agriculture along with small agriculture and turf are being set to post sales declines of 20% to 25% for fiscal 2024. Net income in financial services is forecast at $720 million, down from $770 million guided in May.

For the three months through July 28, Deere's sales fell to $11.39 billion from $14.28 billion a year earlier, but that was better than analysts' projections for $10.79 billion. Earnings slowed to $6.29 a share from $10.20 a share previously. The Capital IQ consensus was for $5.64.

Global agriculture fundamentals "are expected to remain weak as construction moderates," Deere said in a statement. Production and precision agriculture sales fell 25% in the third quarter to $5.1 billion as shipment volumes slid. Small agriculture and turf sales dropped 18% to $3.05 billion while construction and forestry sank 13% to $3.24 billion, declines that company also attributed to lower shipments.

Financial services income dropped 29% in the three months to $156 million, driven by a higher provision for credit losses and "less-favorable" financing spreads. Last week. Deere said Brazil's Banco Bradesco will invest in Banco John Deere, becoming a 50% owner of the financing arm in the South American country. The "transaction supports continued investment in a key growth market," Deere said Thursday.

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