By Matt Grossman

 

Deere & Co. lowered its full-year guidance for net income, citing a decline in sales across its divisions during the coronavirus pandemic.

The Moline, Ill.-based maker of construction and agricultural equipment said it expects net income for the 2020 fiscal year to be between $1.6 billion and $2 billion, adding that the pandemic could negatively affect the results.

Analysts polled by FactSet previously forecast that 2020 net income would be $2.04 billion.

In February, Deere had projected net income of $2.7 billion to $3.1 billion for the fiscal year.

In response to the crisis, Deere has raised about $4.5 billion in medium- to long-term funding and has reduced operating expenses, the company said.

Pressures the company is facing include weaker demand for forestry equipment in North America and Russia, lower sales of agriculture and turf equipment in Asia because of the pandemic-related shutdown in India, and decreased tractor and combine sales in South America, according to Deere.

 

Write to Matt Grossman at matt.grossman@wsj.com

 

(END) Dow Jones Newswires

May 22, 2020 07:30 ET (11:30 GMT)

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