John Deere has announced an efficiency drive as it revealed below-market results and cut its earnings forecast for a second time, noting a ‘high degree of uncertainty’ in agriculture.
Samuel Allen, chairman and chief executive, said John Deere was conducting a ‘thorough assessment’ of its cost structure and looking at actions to make the organisation more ‘structurally efficient and profitable’.
Quarterly sales globally were down 3 per cent to $8.97 billion (£7.41bn), with continued uncertainty in the agriculture sector weighing on results.
He said: “Concerns about export market access, near-term demand for commodities such as soyabeans, and overall crop conditions, have caused many farmers to postpone major equipment purchases.
“At the same time, general economic conditions remain positive and are contributing to strong results for Deere’s construction and forestry business.”
In the US and Canada, trade tensions have hit forecasts, with Deere ditching expectations of growth up to 5 per cent in the North American market, instead seeing a flat performance.
It also flagged Brexit as a factor which may ‘adversely affect business activity, political stability and economic conditions’ in the UK, Europe and elsewhere.