By Allison Prang
Deere & Co. lowered its guidance for profit and equipment sales for the current fiscal year as its farming customers continue to face headwinds in the agriculture industry and remain concerned about trade disputes.
Deere said Friday it expects about $3.3 billion in profit and about a 5% increase in equipment sales. Deere guided in February it would generate about $3.6 billion in profit and for equipment sales to rise 7% from the prior year.
"Ongoing concerns about export-market access, near-term demand for commodities such as soybeans, and a delayed planting season in much of North America are causing farmers to become much more cautious about making major purchases," Chief Executive Samuel Allen said in prepared remarks, adding that "overall economic conditions remain positive."
Shares fell 3.8% in premarket trading.
Profit declined 6% to $1.13 billion, or $3.52 a share, in the company's second quarter, which ended in late April, from the comparable quarter a year earlier. Analysts polled by Refinitiv were expecting $3.59 a share.
For the most recent fiscal second quarter, Deere's income-tax expenses nearly doubled from a year ago.
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