Deere Lowers Profit Forecast as Demand Softens

Published 1 hours agoDE

Deere Lowers Profit Forecast as Demand Softens

Deere & Co. has revised its profit outlook for the year, now expecting net income between $4.75 billion and $5.5 billion, down from the earlier forecast of $5 billion to $5.5 billion. This adjustment reflects the company's response to ongoing market challenges that have impacted its financial projections.

In its second-quarter financial report, Deere announced a significant 16% drop in revenue, bringing in $12.8 billion compared to $15.24 billion for the same period last year. Net income also saw a decline, falling to $1.8 billion, or $6.64 per share, from $2.37 billion, or $8.53 per share, a year earlier. Reuters highlighted that this downturn is largely attributed to softer demand, as farmers are increasingly renting equipment rather than purchasing due to high interest rates and declining crop prices.

Despite these challenges, Deere is committed to pressing forward with substantial investments in its U.S. operations, aiming to strengthen its position in the market. The company faces added pressure from tariffs that have increased production costs, creating further uncertainty for industrial firms. Yet, Deere's strategic focus on long-term expansion remains unchanged.

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