The American agricultural machinery manufacturer Deere is really starting to feel the effects of the trade war. The American company came with a lower than expected quarterly profit and is no longer “cautiously optimistic” about the future. Sales and earnings forecasts for the year were also adjusted downwards.
Farmers seem to postpone large purchases more and more. They do not know for sure how much the demand for their products will be in the future, because they may also be affected by trade restrictions such as the import tariffs with which the United States and China in particular strike each other.
Net profit fell by 6 percent in the last second quarter of the broken financial year to $ 1.1 billion. Sales increased by 5 percent to $ 10.3 billion.
For the entire financial year, Deerde now expects a revenue increase of 5 percent and a net profit of $ 3.3 billion. Earlier the expectation was 7 percent growth and a result of 3.6 billion dollars.
Peretz M. is an accomplished economist and financial journalist with a deep understanding of the global economy and financial markets. He is a regular contributor to EconomicInform, where he provides expert analysis and commentary on current economic trends and events. With a strong educational background in economics, Peretz has a talent for breaking down complex economic concepts for a general audience and is able to provide insightful perspectives on a wide range of economic issues.