Deere cuts profit forecast as farmers rein in orders for new tractors

Deere, a barometer of the global economy, said operating margins contracted due to lower sales for large agriculture equipment which the company is expecting to decline 20% this year.

Deere, the the world's largest farm equipment maker, cut its 2024 profit forecast as farmers remained hesitant about large equipment purchases due to high borrowing rates and falling crop prices, even as its first-quarter sales and profit topped analysts' estimates.

With farmers reassessing orders, particularly for compact tractors, Deere said it now expects net income for the financial 2024 year of $7.5bn (€7bn) to $7.7bn.