Fiscal Year 2024: CLAAS invests over 330 million Euros in strategic growth projects

CLAAS successfully navigated a tough industry environment and concluded the 2024 financial year with a solid result. Sales at the end of the fiscal year on 30 September 2024 amounted to 5.0 billion euros, a decrease of 19% compared to the previous year. The operating profit before depreciation (EBITDA) reached 584 million euros after 769 million euros in the previous year. The net income for the year was 253 million euros (previous year: 347 million euros). Tight producer prices and elevated interest rates posed considerable challenges for the agricultural sector. Additionally, severe weather conditions and geopolitical tensions have introduced substantial uncertainty, leading farmers and contractors to hesitate in making purchases. These special effects characterized the business development of the agricultural machinery sector in the 2024 financial year.

11/12/2024

"The year 2024 has tested our organization. CLAAS has stayed on course even in rough waters," emphasizes CEO Jan-Hendrik Mohr. "In times like these, it is crucial to stand together, manage costs efficiently, and proactively advance our business. We have once again increased our R&D expenditure to over 330 million euros and made targeted investments in future projects, new technologies and our production network. In this way, we ensure sustainable growth and drive innovation."

“We have performed well in the tense and highly competitive agricultural machinery market. Despite a significant decline in sales, our strong earnings demonstrate our resilience," says CFO Henner Böttcher. "Today, it is paying off that we adapted our structures and processes early, amid a phase of high market dynamics and increasing geopolitical uncertainties."

New products expand portfolio

In the past financial year, CLAAS once again presented numerous new products: In Europe, the TRION 740, which was previously only available in North America, was introduced as a new model in the combine harvester series in the medium power segment. In the forage harvesting segment, CLAAS presented seven new large-scale mowers, four new high-performance tedders and a new baler-wrapper combination. The company also presented new SCORPION telehandlers in the 3- and 4-tonne class, new ROVIO 4 maize pickers with significantly more power and new features for the JAGUAR forage harvester, including the innovative V-FLEX chopping cylinder and an AI-supported online tool integrated into CLAAS connect to determine preparation quality in the field. The NEXOS 200 COMFORT with a new four-post cab and extended comfort and automatic functions was presented in the area of specialty tractors for orchards and vineyards. Also important for growth and export markets was the launch of the LEXION 8900 TERRA TRAC in North America and the AXION TERRA TRAC in South Africa. In addition, CLAAS successfully launched the XERION 12 tractor series, which once again embeds standards for power and efficiency, in Kazakhstan and Australia during the financial year - expanded by a third model, the XERION 12.540.

XERION 12 wins the prestigious iF Design Award.

Honoured with an iF Design Award and a special anniversary

The XERION 12 series from CLAAS has already received numerous international awards since its launch in summer 2023. Since spring, the most powerful CLAAS tractors of all time have also been among the winners of the iF Design Award 2024.

In summer, CLAAS celebrated a special milestone in its combine harvester success story. To date, CLAAS has marketed over 500,000 combines worldwide, including more than 100,000 DOMINATOR and more than 75,000 LEXION. The most recent additions to the CLAAS combine harvester family are the TRION and EVION series, launched in 2021 and 2023. Together with the LEXION, CLAAS offers a unique range of products and equipment, from the 205 hp straw walker machine to the 790 hp flagship LEXION 8900 TERRA TRAC.

Future projects continue at full speed

The new CLAAS connect went live on 1 October 2024 - a milestone for CLAAS and the starting signal for new digital offerings. The announcement at Agritechnica in 2023, the world's leading trade fair for agricultural machinery in Hanover, Germany, generated excitement. With CLAAS connect, the company is continuing its more than 25-year digital history and paving the way for future-proof digital solutions, even more connectivity and even "smarter" CLAAS machines.

In addition, extensive modernization work is currently taking place at the CLAAS plants: At the forage harvesting technology site in Bad Saulgau, Germany, the ForageGO! project is continuing at full speed. CLAAS is modernizing the site infrastructure and production facilities by 2025. The aim of the strategic plant development is to adapt the structures and processes to the expanded product portfolio and expand production capacities. Production of combine harvesters, forage harvesters and XERION tractors will be modernized in Harsewinkel. The new inbound department will soon be operational, and additional production steps will be automated in the future.

CEO Jan-Hendrik Mohr | CFO Henner Böttcher

Outlook for 2025: No upward trend in sight at present
The current industry trend is driven by reduced investments by farmers, most of whom have seen producer prices fall sharply to below average levels. Due to the subdued outlook for the sector and the existing global risks, CLAAS expects a moderate decline in sales and a noticeable decline in income before taxes for the fiscal year 2025 compared to the previous year.

You can find all the details at annualreport.claas.com

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CLAAS Group, Group Communications
Enquiries to pr@claas.com