(Reuters) — Deere and Co. forecast 2024 profits below analysts’ expectations, saying high borrowing costs and tighter budgets will likely dent demand for the farm equipment maker’s agriculture and construction machinery.
Deere predicted a downturn in agriculture and construction equipment sales across all of its regions for the fiscal year ahead, validating analysts’ concern that demand may have peaked for big industrial companies.
Shares for the world’s largest farm equipment were down five percent on Nov. 22. The company now expects 2024 net income between US$7.75 billion and $8.25 billion, far below the consensus for $9.33 billion, according to LSEG data.
The heavy equipment maker’s net income for the quarter rose to $2.37 billion or $8.26 per share, topping the consensus of $7.47 per share.
