Machinery giants Deere and Co, CNH Industrial and Agco have all been hit by US tax reforms, with Deere and Co reporting its biggest loss in 25 years.
The group reported a loss of US$535.1 million (£382.81m) for the quarter to January 29, its largest since the first quarter of the 1993 financial year.
It includes a one-time US$965m (£690.36m) charge related to the tax change.
While the US tax reforms introduced a lower corporate tax rate, it has presented an initial cost to many companies.
Samuel Allen, Deere and Co chairman and chief executive, said the changes would reduce the company’s overall tax rate and be beneficial in the future.
“At the same time, Deere is in good position to capitalise on the strengthening conditions we see in the world’s agricultural and construction equipment markets,” he said.
“This underscores our success developing a more durable business model while making steady investments in new products, businesses, markets and technologies.”
The maker of John Deere equipment, which remains the top manufacturer in the UK with 27.9 per cent of the market share, lifted its forecast for sales in 2018.
But it reported its 2018 earnings at about US$2.1 billion (£1.5bn), lower than previously expected.
Deere and Co also warned its businesses could be affected by Brexit and the perceptions of how withdrawal could ‘adversely affect business activity, political stability and economic conditions’ in the UK, EU and elsewhere.
Agco, which owns brands including Massey Ferguson and Fendt, was hit by a US$42m (£30.05m)
one-time charge in US tax in December. New Holland and Case parent company CNH Industrial was hit with a non-cash tax charge of US$123m (£87.99m).
Agco forecasted relatively stable industry demand across all regions in 2018 with CNH Industrial reporting demand was expected to improve, as farm incomes were expected to remain stable.