August 19, 2019
John Deere plans to reduce its production amid sluggish sales, as the ripples from an ag industry weakened by a protracted trade war and a year of staggering natural disasters continue to spread across the broader economy.
John Deere CEO and Chairman Samuel Allen says that “Concerns about export-market access, near-term demand for commodities and overall crop conditions have caused many farmers to postpone major equipment purchases.”
While John Deere currently projects a profit of around $3.2 billion and an increase in equipment sales of around 4% this year, that is down from its earlier projection of $3.2 billion and 5%. The picture gets even bleaker if the view is narrowed to include farm equipment sales only (excluding heavy equipment sales for the construction industry): ag equipment sales are down 6% over last year, and profits have dropped 24%.
Read the full story HERE.
(Source: AgriMarketing.com)
