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For
the quarter ended on Nov. 3, it reported an adjusted profit of
$2.14 per share, down from $2.30 per share last year. That
compares with average analyst estimates of $2.13 per share,
according to Refinitiv Eikon data.
The Moline, Illinois-based company said it expects net income of
$2.7 billion to $3.1 billion in the fiscal 2020. The forecast is
lower than average analyst estimates of $3.5 billion for the
year.
"Lingering trade tensions coupled with a year of difficult
growing and harvesting conditions have caused many farmers to
become cautious about making major investments in new
equipment," said new chief executive officer John May.
Deere's worldwide sales of agriculture and turf equipment are
forecast to decline 5% to 10% next year. Industry sales of
agricultural equipment in the U.S. and Canada, the company's
biggest market, are expected to be down about 5%, on the back of
lower demand for large equipment.
Sales at the company's construction and forestry division are
expected to be down 10% to 15% in 2020.
Deere's shares, which have gained about 19% this year, were down
4.3% in pre-market trade.
(Reporting by Rajesh Kumar Singh, editing by Louise Heavens and
Chizu Nomiyama)
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