Deere Lowers Profit Outlook in 'Challenging' Economic Environment
Deere & Co. lowered its full-year net income outlook as customers continue to be cautious abouts spending.
The big farming and construction machinery manufacturer said its customers are dealing with "challenging times."
Deere beat third-quarter profit and sales forecasts.
Shares of Deere & Co. (DE) slumped 6% in premarket trading Thursday when the big farming and construction machinery maker lowered its full-year outlook, saying "customers remain cautious."
Deere now sees fiscal 2025 net income in the range of $4.75 billion to $5.25 billion. Previously, its outlook was for $4.75 billion to $5.50 billion.
CEO John May said its customers are facing "challenging times." May added that the company remains "committed to delivering solutions that address our customers' current needs while also laying the groundwork for future growth," and that the "positive outcomes we're enabling reinforce our confidence in Deere's future despite near-term uncertainty."
The forecast offset better-than-expected fiscal third-quarter results. Deere posted earnings per share of $4.75 on revenue that fell 9% year-over-year to $12.02 billion but also exceeded consensus estimates of analysts surveyed by Visible Alpha.
Sales at the Production & Precision Agriculture unit sank 16% to $4.27 billion. They were down 5% to $3.06 billion at the Construction & Forestry division, and they slid 1% to $3.03 billion at the Small Agriculture & Turf segment.
Entering Thursday, Deere & Co. shares were 21% higher year-to-date.
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