Deere’s profit falls as large equipment demand remains soft
Deere reported a decline in second-quarter profit due to weak demand for large farm machinery. Net income fell slightly compared to the previous year, reflecting ongoing challenges in the agricultural equipment market. Despite this, the company saw revenue growth in smaller segments, although its largest segment experienced a significant drop in sales.
- ▪Deere's net income for the quarter was US$1.77 billion, down from US$1.8 billion a year earlier.
- ▪The company's revenue increased by 5 percent to US$13.37 billion, driven by demand in small agriculture and construction segments.
- ▪Sales in the production and precision agriculture segment dropped 14 percent due to weak demand for heavy equipment.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountFarm equipment maker Deere DE-N posted a lower second-quarter profit on Thursday, weighed down by sluggish demand for its large farm machinery.Net income fell to US$1.77-billion, or US$6.55 per share, for the quarter ended May 3, from US$1.8-billion, or US$6.64 per share, a year earlier.Tractor makers like Deere have been hamstrung by muted demand for new farm equipment over the last few years, as weak crop prices and rising costs have led farmers to extend use of their machinery.U.S. net farm income, a broad gauge of the farm economy’s profitability, is expected to drop 0.7 per cent in 2026, according to the country’s Department of Agriculture.Companies were also hurt by U.S.
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