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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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Manufacturing & engineering

Deere misses Q4 forecasts as tractor market struggles

The company’s construction and forestry segment also posted a double-digit sales fall in the period.

Shares in Deere & Co (NYSE:DE) dropped as its latest quarterly figures failed to cut the mustard.

The biggest seller of tractors and combine harvesters in the world said slumping farming and equipment markets meant sales dropped 13%, worse than the 11% it had expected.

Deere pointed to lower shipment volumes as well as a strong dollar, which makes its equipment more expensive abroad.

The company’s construction and forestry segment also posted a double-digit sales fall in the period.

It means, for the year ending in October, farming and construction equipment sales are expected to fall by 10%, compared with a previously forecast 7% drop.

Shares in the company, which have lost 12% over the past 12 months, slipped almost 4% in early trading to $77.12.

Stephen Volkmann, an analyst at Jefferies, said: “A key issue will be Deere's ability to maintain good cost control with revenue declines in both its business units.”

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