Deere Maintains Outlook Amidst Agricultural Slump
Deere & Co. has maintained its outlook despite a slumping agriculture sector that continues to impact tractor sales for the global leader in farm machinery.
Shares declined 5.6% in pre-market trading in New York. Despite the decline, Deere reported first-quarter net income of $869 million, exceeding analyst estimates of $848.7 million.
For 2025, Deere projects net income between $5 billion and $5.5 billion, aligning with its initial outlook in November. However, sales in the key North American market are expected to decrease by approximately 30% this year due to challenges faced by farmers, including low grain and oilseed prices and high machinery and seed costs.
Despite these challenges, the US Department of Agriculture forecasts an increase in American farm income for the first time in three years in 2025. However, a significant portion of this growth is attributed to government assistance.
"Deere's first-quarter performance underscores our ongoing commitment to inventory optimization," said Chief Executive Officer John May. "We believe our efforts are positioning the company to effectively navigate the current environment."