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Deere's Profit Dips Amid Tariffs, Weak Tractor Sales
19 Feb
Summary
- First-quarter profit fell to $656 million from $869 million year-over-year.
- Net sales increased 13% to $9.61 billion, driven by construction and turf segments.
- The company raised its fiscal-year net income guidance significantly.
Deere's first-quarter financial results revealed a decrease in profit, with earnings totaling $656 million, or $2.42 per share. This reduction is attributed to the burden of tariffs and a noticeable slowdown in tractor sales.
Despite lower profits, the company's net sales and revenue experienced a substantial 13% surge, amounting to $9.61 billion. This growth was primarily fueled by a significant 34% increase in the construction and forestry division's net sales, alongside a 24% rise in the small agriculture and turf segment.
Looking ahead, Deere has upgraded its fiscal-year outlook, now projecting net income between $4.5 billion and $5 billion, an increase from the previous $4 billion to $4.75 billion range. The company also anticipates a 15% growth in net sales for its small agriculture and turf and construction and forestry segments for the full fiscal year.
