(Bloomberg) – Deere & Co. shares slid after the company forecast smaller-than-expected profit next year, with slowing equipment demand from farmers starting to weigh on the world’s largest tractor maker.
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Net income for the fiscal year will be between $7.75 billion and $8.25 billion, Deere said Wednesday after reporting fourth-quarter earnings that beat analyst estimates. Its full-year outlook came in well below estimates compiled by Bloomberg of $9.32 billion, prompting the stock to drop as much as 7.7% in pre-market trading.
Sliding crop prices have hit machinery makers in recent months, with farmers less willing to buy new equipment for planting and harvesting. While demand for new tractors remains elevated, there’s concerns that production of farm equipment could start outstripping demand.
Rival farm machinery maker CNH Industrial NV recently said it was reducing salaried workers with equipment sales slumping. Seed maker Corteva Inc. has also warned of…
2023-11-22 07:37:47
Source from finance.yahoo.com
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