Deere Outlook Disappoints as Trade War Keeps Farmers Frugal (3)

Deere & Co. delivered a more cautious outlook than expected for the year ahead as simmering U.S.-China trade tensions and difficult growing conditions keep North American farmers from replacing large equipment, the company’s top moneymaker. The shares tumbled to a six-week low.

Demand for machinery has taken a back seat as trade concerns have farmers worrying about who will buy their products, while financial-services results have come under pressure due to operating-lease losses. Construction equipment purchases are also set to decline.

Deere’s fourth-quarter sales were better than expected. Bloomberg Intelligence’s Karen Ubelhart has the details.

Source: Bloomberg

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