Headline: Deere Quarterly Revenue Slumps 30% Amid Farming Woes
Key Points:
* Deere & Company's quarterly revenue declined 30%, below analyst estimates.
* Weak farmer incomes and high borrowing costs have pushed farmers towards renting equipment instead of purchasing.
* President Trump's tariff announcements have raised concerns about trade wars and increased costs for manufacturers.
* Industrial metal prices, essential for equipment production, have risen due to Trump's tariffs.
* Deere maintained its full-year profit forecast, but expects lower sales in its production and precision agriculture segment.
* The company reported a significant drop in net income for the first quarter.
Impact on Stock:
* Deere's shares dropped nearly 8% in premarket trading.
Additional Information:
* Farm income has declined 23% since 2022.
* Trump's tariffs have been temporarily paused for 30 days on Mexico and Canada.
* Deere's outlook does not consider the potential impact of import tariffs or retaliatory actions.