Sales Concerns Lead to Disappointing Profit Outlook for Deere

Sales Concerns Lead to Disappointing Profit Outlook for Deere


(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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