Deere & Co. Boosts Full-Year Profit Estimate Despite Forecast Sales Declines

By Matt Grossman

Deere & Co. expects to achieve full-year net income of $2.25 billion, the Moline, Ill.-based agricultural- and construction-equipment maker said Friday.

The forecast is higher than the estimate Deere issued in May, when it said it expected net income of between $1.6 billion and $2 billion. Analysts surveyed by FactSet have estimated full-year net income of $1.99 billion.

The Covid-19 pandemic and its economic effects have had a moderating effect on Deere's key markets due to customer uncertainty, Chief Executive John C. May said.

Deere forecast that its world-wide sales of construction and forestry equipment would decline about 25% year over year in 2020, with industry construction-equipment sales down about 20% in North America. Agriculture and turf sales would decline by roughly 10% world-wide, Deere said, including a decline of 5% to 10% in the U.S. and Canada.

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

(END) Dow Jones Newswires

August 21, 2020 07:05 ET (11:05 GMT)

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