Tariffs, Farm Income, Squeezing Sales for Deere

Low farm income, a challenging growing season and the impact of trade tariffs on agriculture have farmers putting off purchases of equipment.  The depressed farm economy is part of the factors why Deere &Co. trimmed its earnings forecast for the year to $3.2 billion, from an expected $3.3 billion and a 5% increase in sales.  The sales figures are still up 4% year-over-year.  Deere reported quarterly sales of farm equipment fell six percent from 2018 levels as profit from the farm equipment business dropped 24%.

CEO Samuel Allen said the third-quarter results "reflected the high degree of uncertainty that continues to overshadow the agricultural sector."

Overall, Deere's worldwide net sales and revenues decreased 3% to $10 billion, for the third quarter of 2019 and increased five percent to $29.4 billion, for nine months. Net sales of the equipment operations were $9 billion for the quarter and $26.2 billion for the year, compared with $9.3 billion and $25 billion last year.

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