“Overall, we expect to see positive price costs for the full fiscal year, yet another example of the structural improvements our teams continue to deliver.”

In context

“25 decrementals are impacted by product and geographic mix. North American large ag equipment like combines and row crop tractors experienced larger reductions compared to the rest of the world. This is particularly noteworthy in the first quarter given the year-over-year comparison to strong North American large ag sales in the first quarter of 2024. Now when we think about the first quarter of 2025, we expect top-line sales for the equipment operations to be down 15% to 20% sequentially from 4Q24, with margins 300 to 400 basis points lower than the full-year guide. Additionally, we are forecasting production costs to be favorable again in 2025 for the equipment operations, driven primarily by improved material costs and lower overhead expenses, all despite significant volume reductions. Overall, we expect to see positive price costs for the full fiscal year, yet another example of the structural improvements our teams continue to deliver. Josh Beal: Thanks, Josh. That's a great walk around the world, as well as good additional insight into where we're projecting production costs in 2025. Now we've talked extensively about 2025 order books and new inventories, but a significant concern heading into next year is North American used inventories. Last quarter, we discussed the levers we were pulling to return to long-term averages. Cory, this next question is for you. Can you give us an update on where we stand in North America and what steps we're taking to manage these inventory levels? Cory Reed: Yeah. Sure, Josh. As you just heard, our team has done an excellent job proactively managing new inventories. We're seeing the benefits of those decisions play out in 2025. As you noted, our primary focus over the last few quarters”