Deere Projects Lower Net Income for 2020
May 22 2020 - 7:45AM
Dow Jones News
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)
Copyright (c) 2020 Dow Jones & Company, Inc.
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