Latest news with #Deere&Co.
Chicago Tribune
5 days ago
- Business
- Chicago Tribune
Wall Street quiet ahead of meeting between President Donald Trump and Russian President Vladimir Putin
Markets are largely unchanged early Thursday ahead of a key meeting between U.S. President Donald Trump and Russian President Vladimir Putin this week. Futures for the S&P 500, Dow Jones Industrial Average and Nasdaq all ticked down less than 0.1% before the opening bell. Shares of Deere & Co. slid 7.5% after the heavy equipment manufacturer cut its forecast despite beating Wall Street's third-quarter sales and profit targets. Deere's sales and profit fell significantly from a year ago and the company cited 'near-term uncertainty' in its earnings release. Deere said that it has been focusing on inventory management with inventories remaining high. Tapestry, the parent of Kate Spade and Coach, saw its shares tumble more than 6% on a weak outlook. The company said it expects a tiny increase in sales for the upcoming year, while forecasting a 60-cents-per-share hit on profit due to tariffs. Tapestry says that about 70% of its products are made in Vietnam, Cambodia and the Philippines. Later Thursday, the government will release its report on inflation at the wholesale level, before products reach consumers. Economists expect it to show inflation ticked up to 2.4% in July from 2.3% in June. The U.S. also releases its weekly report on applications for jobless benefits, which serves as a proxy for U.S. layoffs. On Friday at Joint Base Elmendorf-Richardson outside Anchorage, Putin and Trump as well as a meeting of the delegations, will convene a meeting. In Europe at midday, Britain's FTSE 100 was unchanged after the government reported that the UK economy grew at a faster than expected 1.2% annual pace in the last quarter. In quarterly terms, the economy grew 0.3%, slowing from a 0.7% expansion in January-March. Germany's DAX rose 0.6% and the CAC 40 in Paris added 0.5%. Europe is bracing for Trump's encounter with Putin, though the U.S. president has said he will prioritize trying to achieve a ceasefire in Ukraine when he meets with Putin on Friday in Anchorage. The Trump-Putin meeting could have major implications for energy markets, potentially leading to an easing of sanctions against Moscow, or an escalation if no progress is made on ending the war in Ukraine. Early Thursday, U.S. benchmark crude rose 23 cents to $62.88 per barrel. Brent crude, the international standard, added 25 cents to $65.88 per barrel. During Asian trading, Tokyo's Nikkei 225 fell nearly 1.5% to 42,649.26 as investors sold to lock in recent gains that have taken the benchmark to all-time records. The Japanese yen rose against the dollar after U.S. Treasury Secretary Scott Bessent said in an interview with Bloomberg that Japan was 'behind the curve' in monetary tightening. He was referring to the slow pace of increases in Japan's near-zero interest rates. Low interest rates tend to make the yen weaker against the dollar, giving Japanese exporters a cost advantage in overseas sales. The dollar fell to 146.53 Japanese yen Thursday, down from 147.39 yen. The euro slid to $1.1691 from $1.1705. In Chinese markets, Hong Kong's Hang Seng index shed 0.4% to 25,519.32, while the Shanghai composite index slid 0.5% to 3,666.44. South Korea's Kospi rose less than 0.1% to 3,225.66. In Australia, the S&P ASX 200 index added 0.5% to 8,873.80. Taiwan's Taiex fell 0.5% and India's Sensex edged 0.2% higher. Bitcoin briefly rose more than 3% to a new record of over $123,000, according to CoinDesk. It later fell back below $121,000.
New York Post
09-08-2025
- Business
- New York Post
John Deere pledges to pour $20B into its US operations to ‘continue building and investing in America'
Advertisement Farm equipment giant John Deere announced this year it is investing nearly $20 billion over the next decade to bolster its US operations as part of its ongoing commitment to American manufacturing. 'We look forward to carrying forward our founder's legacy of ingenuity as we continue building and investing in America,' Cory Reed, president of Deere & Co.'s worldwide agriculture and turf division for production and precision agriculture in the Americas and Australia, told FOX Business. 'We were born here, and we're here to stay.' The company's $20 billion investment focuses on the development of new products, 'cutting-edge' technology and more advanced manufacturing capabilities, Reed said. Advertisement John Deere is investing nearly $20 billion in the US over the next decade. AP Founded in 1837 in Grand Detour, Ill., by blacksmith John Deere, the company has made significant investments in the US in recent years to expand and modernize its factories and build new ones. John Deere is building a $70 million factory in Kernersville, North Carolina, which will be dedicated to manufacturing excavators, Reed said. The company recently completed a $40 million expansion at its Des Moines, Iowa, factory to build See & Spray sprayers, which use computer vision and artificial intelligence to detect and target weeds. Advertisement The company was founded in 1837 in Grand Detour, Ill. It also invested nearly $150 million to renovate its factory in East Moline, Illinois, to build its new X9 combines, which raise harvesting capacity by around 45%, according to the John Deere website. 'These investments are helping us solve some of our customers' biggest challenges,' Reed said. 'Our customers are the backbone of our communities, and we're proud to provide the solutions that make their jobs easier and more efficient.'Nearly 80% of John Deere's US sales and 25% of its international sales are from products manufactured domestically. Advertisement The company employs about 30,000 people at more than 60 US locations, and its network of independent US dealerships employs an additional 50,000, Reed said.
Yahoo
16-05-2025
- Business
- Yahoo
Deere details $500M tariffs impact
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. By the numbers: Q2 earnings Sales and revenue: $12.76B 16% decline YoY Net income: $1.8B 24% decline YoY Earnings per share: $6.64 Compared to $8.53 per share in Q2 2024 Deere & Co. is bracing for a $500 million tariff impact on its farm and construction equipment operations this year, executives said on an earnings call Thursday. The Moline, Illinois-based company incurred tariff-related expenses of $100 million in the second quarter, and expects those costs to be close to $400 million for the rest of the year, CFO Josh Jepsen said on the call. The forecast is based on tariffs in effect as of May 13, including the reduction in reciprocal and retaliatory rates between China and the United States set earlier this week. Deere, like other companies, is actively monitoring the tariffs situation and taking steps to mitigate their effects. Recently, Deere certified goods and components that were previously ineligible for free trade under the U.S.-Mexico-Canada Agreement, Jepsen said. The supply chain team is also working to optimize global trade flows and monitor component sourcing. In terms of pricing actions, given that most of the order books are full for 2025, Jepsen said 'there's not much opportunity.' However, Deere is evaluating price increases for its 2026 equipment. 'We are doing so being very mindful of the dynamic environment and the pressures our customers have had to deal with over the past few years,' Jepsen said. Looking ahead, Deere widened its full-year guidance, citing near-term market challenges and ongoing trade uncertainty. The company reported a net income range between $4.75 billion and $5.5 billion, reflecting a downward revision of $250 million compared with its previous forecast. In terms of tariffs, Deere is expecting most of the $500 million headwind to impact its construction and forestry operations, which are more exposed to China than its agriculture operations. According to a company presentation, nearly 80% of its goods sold are assembled in U.S. manufacturing facilities. Deere has more than 60 locations across 16 states. In addition to trade headwinds, Deere has been navigating a downturn in the market as high interest rates and economic uncertainty slow demand for heavy machinery purchases like tractors and bulldozers. However, things may be starting to turn around. Despite historic levels of volatility, Chairman and CEO John May said the company performed better than expected as Q2 sales and revenues rebounded from the previous quarter. Results doubled over the period. Deere attributed the higher sales, in part, to stronger farm balance sheets as the U.S. government distributes $10 billion in emergency payments to farmers following a poor 2024 crop year. The company is expecting increased farm liquidity and more stable crop prices to help mitigate tariff effects for the remainder of 2025. 'In the near term, we'll continue to proactively manage what we can control — cost, production, inventory and quality — to navigate this environment while driving the margins that fuel our investments in the future,' May said on the call. Deere is prepared to spend $20 billion in the U.S. over the next 10 years, May said. While no specific details were disclosed, the company is looking to invest in new product development, the latest technologies and advanced manufacturing. 'As we look forward, we're more excited than ever about the opportunities ahead,' May said. Recommended Reading Tractor makers CNH, Agco face sales headwinds amid economic slowdown Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Resurgence of ‘America First' Trade Forges New Equities Leader
(Bloomberg) -- An unlikely cohort has climbed to the top of the S&P 500 Index's leaderboard, powered by a resurgence of the America First trade this week as tariff tensions eased, at least for now. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Maryland's Credit Rating Gets Downgraded as Governor Blames Trump Power-Hungry Data Centers Are Warming Homes in the Nordics NYC Commuters Brace for Chaos as NJ Transit Strike Looms Industrials, the companies that manufacture goods and transport them, leaped ahead of the 10 other major sectors in the benchmark on a year-to-date basis following the US and China's trade truce at the start of the week. They were lingering in 3rd place as recently as a week ago. Those stocks are up 7.8% for the year, while the S&P 500 is roughly flat. It's unusual for the group, stacked with companies that have steady but slow-growing businesses, to outperform the broader market — they haven't done so on an annual basis in the past decade. The shift toward the segment — with General Electric Co. and Deere & Co. among firms leading the charge — is a bet that waning trade friction will help the US economy rebound after a feeble first quarter. 'The whole 'America First, Buy US' is a really pro-industrial narrative,' said Jeff Buchbinder, chief equity strategist at LPL Financial. 'A healthy bull market is led by the cyclical sectors that benefit most from economic growth,' referring to industrials, utilities and financials outperforming this year. In the past week, renewed optimism around the American economy has propelled US stocks ahead of benchmarks in Europe, China and Mexico. It's part of a strengthening risk-on tone that has some market-watchers and options pros positioning for the S&P 500 to eclipse its February record high in the coming months, after approaching a bear market just weeks ago. Recession Specter Whether the cohort will continue to lead gains remains to be seen, given the specter of an economic recession still looming in the horizon. The risk of a slowdown in growth also remains high given that tariffs can disrupt businesses and stoke inflation. This week, billionaire Steve Cohen said the chance of a recession in the US now stands at about 45%, noting that there is already 'significant slowing growth.' LPL's Buchbinder also warns about continuing trade risk, which is the reason he cited when he recently downgraded industrials to neutral. 'The sector is pricing in a lot of optimism now,' he said. 'Even though the trade risk is lower now, it is still there and you cannot dismiss it.' Nicholas Colas of DataTrek Research says the rally in industrials is getting stretched, noting the sector now trades for nearly 23 times forward earnings, much higher than its 10-year average of about 19. Path Ahead But for now, industrials and utilities are the only sectors that are in the green since the S&P 500 hit an all-time high in February. Industrials have been outperforming the broader benchmark over the past 100 days after generally trailing it over comparable stretches since 2015, according to analysis from DataTrek. HSBC Holdings Plc strategists said the earnings expectations for economically sensitive companies seem to have bottomed out, suggesting a recovery is on the horizon. Bank of America Corp. strategists, meanwhile, said that investors calling for 'the end of US exceptionalism,' may be forced back in and further feed the rally. As long as there's no major shock on the trade front, Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report, sees industrials and other cyclical stocks continuing to outperform. Tentarelli upgraded industrials, along with semiconductors and banks to overweight earlier this week, citing the tariff pause between the US and China. 'Industrials and banks are the two sectors you want to buy if you believe the economy is either going to accelerate or not slow down as much as expected,' he said. Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Microsoft's CEO on How AI Will Remake Every Company, Including His As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Why Obesity Drugs Are Getting Cheaper — and Also More Expensive ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Deere Delivers Solid Results in Downturn
Deere is working through a downturn in demand for its equipment in almost every end market and geography. Sales and earnings are down, but the company continues to deliver solid operating results. Management expanded the lower end of its full-year earnings outlook, but held firm on cash flows and the upper end of profits. 10 stocks we like better than Deere & Company › Here's our initial take on Deere & Co.'s (NYSE: DE) fiscal 2025 second-quarter financial results. Metric Q2 FY24 Q2 FY25 Change vs. Expectations Revenue $15.2 billion $12.8 billion -16% Beat Earnings per share $8.53 $6.64 -22% Beat Operating margin 20.3% 18.1% - 220 bps n/a Operating cash flow (six months) $944 million $568 million -40% n/a The equipment and engine manufacturer's second quarter saw more double-digit sales declines, and as is typical for many cyclical businesses, it reported an even larger earnings decline. Yet some signs indicated the worst of this cyclical downturn could be behind it. While revenue was down 16% and earnings per share fell 22%, that was a moderation from the 30% and 49% respective declines in the first quarter, which was a deterioration from the fourth quarter of the prior year, when revenue fell 28% and earnings per share were down 45%. In profitability and cash flow terms, manufacturers typically see their margins shrink during periods of weak demand, and that's been the case for Deere. The good news is that gross margins are holding up, at 40.3% from 39.9% last year. Operating margin did fall 220 basis points (2.2 percentage points) to 18.1%, a relatively solid result considering the impact of lost revenue. In all, Deere was able to bring its costs and expenses down almost $1.7 billion in the quarter. Deere share prices were up around 2.3% in premarket trading today, a notable gain against a backdrop of broad market futures down about a half a percentage point. Deere's results, while worse than a year ago, show that trend of stabilization and came in ahead of expectations. Management's guidance across most of its segments is for revenue declines to stabilize and Deere to deliver strong full-year earnings and cash flow. Deere is guiding for revenue to fall 15% to 20% in its production and precision ag segment, which is its largest, but for 10% to 15% declines in its other segments, which make up about 60% of total sales. This supports the likelihood that even with continued soft sales, the trend suggests it's at the bottom of the cycle and showing some signs of a recovery in growing demand within a few quarters. Management also highlighted that the bulk of its sourcing of inputs for manufacturing is from the U.S., Europe, and Mexico, which, combined, make up 93% of complete goods and 92% of components for its products. For those with concerns about tariffs, this should soften the impact for sales in those end markets, but it's possible that the company could still face pressure in other markets it sells into, with retaliatory tariffs from those countries. But in the long run, Deere is built to get through these environments profitably and emerge strong. We don't see any signs that has changed. Earnings press release and presentation Investor relations page Before you buy stock in Deere & Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Deere & Company wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Jason Hall has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deere & Company. The Motley Fool has a disclosure policy. Deere Delivers Solid Results in Downturn was originally published by The Motley Fool
