Latest news with #DeereCo
Reuters
5 days ago
- Business
- Reuters
Deere warns of bigger tariff hit after quarterly profit declines
Aug 14 (Reuters) - Deere & Co (DE.N), opens new tab reported a drop in third-quarter profit on Thursday and warned of a bigger tariff hit than previously expected, sending shares of the farm-equipment maker down 7% in morning trade. U.S. President Donald Trump's sweeping tariffs have impacted companies across sectors, especially the manufacturing and industrial firms that rely significantly on imported raw materials. This has added to the woes of farm-equipment makers who were already grappling with slow demand due to a slump in crop prices for wheat, corn and soybeans in North America and farmers opting to rent machinery instead of buying. The company now expects a pre-tax tariff impact of nearly $600 million for the year, compared with $500 million projected last quarter. "Tariff uncertainty and deflated commodity prices have made farmers increasingly cautious in spending decisions and more hesitant to accept higher machinery prices," said CFRA Research analyst Jonathan Sakraida. In the third quarter, the levies cost the company nearly $200 million, as tariff policies shifted quickly. Despite the gloomy demand environment, Deere CEO John May said the company was able to manage its inventory levels to help production match retail demand. The company's cost-saving measures also helped it top analyst estimates for third-quarter profit and revenue. Third-quarter operating profit from two of Deere's largest units, which produce tractors, combines and construction equipment, roughly halved from a year earlier. The company cut the higher end of its annual profit forecast to $5.25 billion from $5.50 billion, but kept the lower end intact at $4.75 billion. Global companies that reported between July 16 and August 8 projected a combined financial hit of $13.6 billion to $15.2 billion for the full year, a Reuters' tariff tracker shows. Trump has said the tariffs are a response to persistent U.S. trade imbalances and declining manufacturing power, and that the moves will bring jobs and investment to the nation. Deere's net income in the third quarter came in at $1.29 billion, or $4.75 per share, compared with $1.73 billion, or $6.29 per share, a year earlier. Analysts on average had expected the company to report a quarterly profit of $4.63 per share, according to data compiled by LSEG. The company's net sales fell about 9% to $10.36 billion from a year ago, more than analysts' estimates of $10.31 billion.
Yahoo
5 days ago
- Business
- Yahoo
Deere's third-quarter profit falls
(Reuters) -Farm-equipment maker Deere & Co reported a lower third-quarter profit on Thursday, hurt by muted demand and headwinds from U.S. tariffs. The company's net income in the quarter came in at $1.29 billion, or $4.75 per share, compared with $1.73 billion, or $6.29 per share, a year earlier. 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
CTV News
5 days ago
- Business
- CTV News
Deere's third-quarter profit falls, in part due to U.S. tariff headwinds
John Deere lawn tractors sit on display outside a Home Depot in Robinson Township, Pa., Friday, April 11, 2025. (AP Photo/Gene J. Puskar) Farm-equipment maker Deere & Co. reported a lower third-quarter profit on Thursday, hurt by muted demand and headwinds from U.S. tariffs. Shares of the company fell about 6 per cent in premarket trading. Crop prices for wheat, corn and soybeans are near multi-year lows in North America, denting demand for farming equipment. Additionally, U.S. President Donald Trump's sweeping tariffs have impacted companies across sectors, with the manufacturing and industrial firms taking the biggest hit. Farmer have also been gravitating toward renting machinery to cut their costs, which has hit sales of big-ticket equipment such as tractors and combines. Deere also cut the upper end of its annual profit forecast to US$5.25 billion, down from its prior expectation of $5.50 billion. The company's net income in the third quarter came in at $1.29 billion, or $4.75 per share, compared with $1.73 billion, or $6.29 per share, a year earlier. Reporting by Nathan Gomes in Bengaluru; Editing by Shinjini Ganguli, Reuters
Yahoo
5 days ago
- Business
- Yahoo
Deere's third-quarter profit falls
(Reuters) -Farm-equipment maker Deere & Co reported a lower third-quarter profit on Thursday, hurt by muted demand and headwinds from U.S. tariffs. The company's net income in the quarter came in at $1.29 billion, or $4.75 per share, compared with $1.73 billion, or $6.29 per share, a year earlier. 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
Bloomberg
01-07-2025
- Business
- Bloomberg
Higher Loan Rates in Brazil Threaten Tractor Sales Rebound
Brazil has raised interest rates on farm equipment financing, threatening to constrain a much-needed recovery in tractor sales. Borrowing costs under a key government credit line were boosted by 2 percentage points to as much as 13.5% a year, the Brazilian agriculture ministry said Tuesday. The move should have a 'downward bias' on domestic tractor sales projections, according to Pedro Oliveira, head of a farm equipment sector chamber at industry group Abimaq, which represents manufacturers including Deere & Co.
