Deere (NYSE: DE) & Co. reported a decrease in profit in the 4th quarter. due to trade tensions and bad weather conditions in the US agricultural belt, which slowed down the purchase of equipment by farmers.
The company’s profit was $ 2.14 per share, compared with $ 2.30 per share for the quarter ended November 3. According to Refinitiv Eikon, analysts had expected a figure of $ 2.13 per share.
Deere expects net profit in fiscal year 2020 of $ 2.7-3.1 billion, but analysts predicted $ 3.5 billion.
Sales of the company’s agricultural and turf equipment will be reduced by 5-10% in the next fiscal year. Industrial sales of agricultural equipment in the US and Canada are projected to fall by about 5% based on lower demand for large equipment.
Deere shares rose about 19% this year and fell 4.3% in over-the-counter trading.
Sales in the construction and forestry segment of the company will decrease by 10-15% next year.