John Deere has to deal with double blow delivered to the balance sheet

J

The agricultural machinery manufacturer Deere has been troubled by the trade war between the United States and China in the past quarter. Farmers are uncertain about the export of their goods, so they postpone spending on new equipment. Deere is therefore more gloomy about the profit for the whole year.

The American group also warned earlier this year about the impact of trade tensions on profitability. Since then, the Sino-US conflict seems to be getting worse, forcing the maker of tractors and combines to make a second adjustment to the forecasts.

Sales fell by 3 percent in the third quarter of the broken financial year to $ 10 billion. The profit fell by 1 percent to 899 million dollars. Deere expects to put a net profit around $ 3.2 billion in the books by the end of 2019, while the company previously assumed a $ 3.3 billion profit.

According to CEO Samuel Allen, the outlook for the long term remains good. At the same time, he announced paying extra attention to the costs.


By: Lesley Woutersen

Lesley Woutersen, one of the co-founders of the EconomicInform gives away all of his free time to the project. He is interested in stock exchange and digital assets. Lesley can be reached by [email protected]

Add comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

By Leah Kunze

Recent Posts

Categories

About us

EconomicInform, EconomicInform.com is a product of EconomicInform LLC. We sincerely believe that economics is one of the most interesting and most underappreciated – in terms of getting some enjoyment out of reading the subject articles – sciences. More on that - at the link. Feel free to drop us a line.