(Matthew Rocco – Fox Business)
Deere reported sizable growth in earnings and revenue for the fiscal third quarter, though sales disappointed as U.S. farmers continue to limit spending on new equipment.
The maker of the iconic green-and-yellow tractors has seen demand in the U.S. and Canada lag behind the rest of the world. Low crop prices have discouraged U.S. farmers from investing in tractors, harvesters and other equipment in recent years. In response, Deere has cut production and turned its attention to international markets. In June, Deere reached a $5.1 billion deal to buy German construction equipment maker Wirtgen, which has a large footprint in China.
Deere said the U.S. and Canada are experiencing low crop prices and weakness in the livestock sector, weighing on sales of large and small agricultural equipment. For 2017, Deere expects those markets to post a 5% decline in sales of agricultural machinery. North America is also dragging down the company’s forestry-related sales. Click here to read more.