Deere & Company (DE): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Deere & Company, a name synonymous with agriculture, evolved into a global leader in machinery and technology? With a commanding 37.8% market share in the tractors and agricultural machinery manufacturing industry, and a presence in over six industries, the company's story is one of constant innovation and adaptation. Join us as we delve into the rich history, ownership structure, and the core mission that drives this iconic American corporation, which generated $51.72 billion in revenue in fiscal year 2024.

Deere & Company (DE) History

Deere & Company Founding Timeline

Year established

Deere & Company was established in 1837.

Original location

The company was originally founded in Grand Detour, Illinois.

Founding team members

The founder of Deere & Company was John Deere.

Initial capital/funding

Information regarding the specific initial capital or funding for John Deere's initial operations in 1837 is not readily available in the provided search results. Early operations were likely funded by John Deere's personal savings and reinvestment of profits.

Deere & Company Evolution Milestones

Deere & Company Transformative Moments

• The invention of the self-scouring steel plow in 1837 was a transformative moment. It addressed a critical need for farmers struggling with the heavy soils of the American Midwest.
• The acquisition of Waterloo Gasoline Engine Company in 1918 marked a significant shift. This move into tractor production was essential for Deere's growth.
• The establishment of John Deere Credit Corporation in 1956 provided a major boost to sales by enabling more farmers to afford Deere's equipment through financing.
• The introduction of precision agriculture technologies, particularly with the acquisition of Blue River Technology in 2017, represents a continued commitment to innovation.

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Deere & Company (DE) Ownership Structure

Deere & Company, commonly known as John Deere, operates as a public company, meaning its ownership is distributed among shareholders.

Deere & Company's Current Status

Deere & Company is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol DE. As a public entity, it is subject to regulatory oversight and reporting requirements, including the filing of annual and quarterly financial statements.

Deere & Company's Ownership Breakdown

Institutional investors and retail investors make up the majority of Deere & Company's (DE) ownership. Here is a breakdown:

Deere & Company's Leadership

The leadership team guides the strategic direction and operations of Deere & Company. Here are some of the key leaders:

• John C. May: Chairman and Chief Executive Officer
• Rajesh Kalathur: President and Chief Financial Officer
• Deanna M. Kovar: Senior Vice President and Chief Technology Officer

Understanding the company's goals and values is crucial; learn more at: Mission Statement, Vision, & Core Values of Deere & Company (DE).

Deere & Company (DE) Mission and Values

Deere & Company aims to provide advanced products and services that improve the lives of customers by helping them succeed. The company is committed to integrity, quality, commitment, and innovation.

Deere & Company's Core Purpose

Official mission statement

Deere & Company's mission statement is:

To provide advanced products and services that improve the lives of customers whose work is linked to the land.

• It emphasizes providing advanced products and services.
• It focuses on improving the lives of customers.
• It specifically targets customers whose work is connected to the land.

Vision statement

Deere & Company's vision is to:

Deliver exceptional value to our customers and stakeholders through the company's commitment to providing advanced products, services, and solutions for the agriculture, construction, forestry, and turf management industries.

• Focuses on delivering exceptional value.
• Highlights commitment to advanced products, services, and solutions.
• Targets agriculture, construction, forestry, and turf management industries.

Company slogan/tagline

Deere & Company's tagline is:

Nothing Runs Like a Deere

• The slogan is memorable and emphasizes the reliability and performance of the company's products.
• It is a simple, yet powerful statement that has been associated with the brand for many years.

For insights into Deere & Company's financial performance, see Breaking Down Deere & Company (DE) Financial Health: Key Insights for Investors.

Deere & Company (DE) How It Works

Deere & Company, operating as John Deere, is a global leader in agricultural machinery, heavy equipment, forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment. The company operates through three major divisions: Production & Precision Agriculture, Small Agriculture & Turf, and Construction & Forestry.

Deere & Company's Product/Service Portfolio

Deere & Company's Operational Framework

Deere & Company’s operations are structured to maximize efficiency, technological innovation, and customer value. The company integrates advanced technology, data analytics, and precision agriculture to enhance productivity and sustainability in farming and construction. Here’s a breakdown:

• Manufacturing and Supply Chain: John Deere operates a global network of manufacturing facilities and a complex supply chain to produce its equipment and parts. They focus on lean manufacturing principles to reduce waste and improve efficiency.
• Technology Integration: A significant aspect of John Deere's operations involves integrating technology into their products. This includes GPS, sensors, and data analytics tools that provide real-time insights to farmers, enhancing decision-making and productivity.
• Dealer Network: John Deere relies on an extensive network of independent dealers to sell and service their equipment. These dealers provide local support, maintenance, and parts, ensuring customer satisfaction and loyalty.
• Financial Services: John Deere provides financial services to help customers purchase their equipment. This includes loans, leases, and insurance products, making their products more accessible.
• Sustainability Initiatives: John Deere is increasingly focused on sustainable practices, including developing more fuel-efficient engines and promoting precision agriculture techniques that reduce environmental impact.

Deere & Company's Strategic Advantages

Deere & Company maintains a competitive edge through several key strategic advantages:

• Brand Recognition and Loyalty: John Deere enjoys strong brand recognition and customer loyalty, built over decades of producing reliable and high-quality equipment.
• Technological Innovation: The company invests heavily in research and development, leading to innovative products and services that enhance productivity and efficiency for its customers.
• Extensive Dealer Network: John Deere's widespread dealer network provides a significant advantage in terms of sales, service, and customer support.
• Financial Strength: John Deere's strong financial position allows it to invest in strategic initiatives, acquisitions, and shareholder returns. For fiscal year 2024, Deere & Company reported net sales and revenues of $61.257 billion and net income of $10.166 billion.
• Diversified Product Portfolio: With a broad range of products and services, John Deere serves diverse markets, reducing its dependence on any single sector.

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Deere & Company (DE) How It Makes Money

Deere & Company primarily generates revenue through the sale and financing of equipment used in agriculture, construction, and forestry, as well as providing aftermarket parts and services.

Deere & Company's Revenue Breakdown

Here's a look at how Deere's revenue is broken down:

Deere & Company's Business Economics

Deere's business economics are influenced by several key factors:

• Pricing Strategy: Deere employs a premium pricing strategy, justified by the advanced technology, durability, and productivity of its equipment. This is supported by strong brand recognition and customer loyalty.
• Economic Fundamentals: The agriculture sector's health significantly impacts Deere. Factors like crop prices, farm incomes, and government subsidies play a crucial role. Construction and forestry segments are sensitive to housing starts, infrastructure spending, and overall economic growth.
• Technological Innovation: Investment in precision agriculture technologies, such as autonomous tractors and data analytics platforms, allows Deere to offer higher-value products. These innovations drive revenue through increased efficiency and productivity for customers.
• Aftermarket Services: A significant portion of Deere's revenue comes from aftermarket parts, service, and support. This recurring revenue stream provides stability and is essential for maintaining customer relationships.

Deere & Company's Financial Performance

Key aspects of Deere's financial performance include:

• Revenue Growth: Deere's revenue is subject to cyclical trends in the agriculture, construction, and forestry industries. However, strategic initiatives in precision agriculture and aftermarket services aim to mitigate these fluctuations. For fiscal year 2024, Deere reported net sales and revenues of $61.257 billion.
• Profitability: Deere maintains strong profitability through efficient operations, premium pricing, and a focus on high-margin products and services. The company's operating margin for 2024 was 17.8%.
• Financial Services: Deere's financial services division provides financing options for customers, supporting equipment sales and generating additional revenue through interest income. In fiscal year 2024, the financial services division reported net income of $879 million.
• Return on Equity (ROE): Deere consistently delivers a high ROE, indicating efficient use of shareholder equity to generate profits. For 2024, Deere's ROE was 34.4%, reflecting strong financial management and profitability.

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Deere & Company (DE) Market Position & Future Outlook

is strategically positioned for continued growth, leveraging its technological advancements and expanding its presence in precision agriculture; however, it faces challenges related to fluctuating commodity prices and global economic uncertainties.

Competitive Landscape

Opportunities & Challenges

Industry Position

stands as a leading manufacturer of agricultural machinery, commanding a significant share of the global market. The company's strong focus on innovation, particularly in precision agriculture, positions it favorably against competitors. Key aspects of 's industry standing include:

• Technological Leadership: consistently invests in research and development to pioneer advanced farming technologies.
• Brand Recognition: has a strong global brand known for quality and reliability.
• Strategic Acquisitions: actively acquires companies to expand its technological capabilities and market reach.

For an in-depth look at the company's financial stability, consider reading: Breaking Down Deere & Company (DE) Financial Health: Key Insights for Investors.