Deere forecasts weak annual profit as tariffs weigh on large

Farm-equipment maker Deer and Co. reported a drop in quarterly net income on Wednesday, as U.S. tariffs hit certain segments of its business.

Deere & Co DE-N forecast an annual profit below estimates on Wednesday, pressured by tariff impacts and weaker margins from its large tractors, sending the farm-equipment maker’s shares down 4 per cent in premarket trading.

CEO John May said ongoing margin pressures from tariffs would continue to weigh on its large-farm-equipment unit, although he expects to benefit from cost cuts and demand from two of its other units that serve forestry and small agriculture markets.

The company, best known for its green and yellow tractors, gets nearly 50 per cent of its revenue from customers in the U.S., where weak crop prices and a shift to cheaper rentals