(Bloomberg) -- Deere & Co. maintained its outlook as a slumping agriculture sector continues to hit tractor sales at the world leader in farm machinery.
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Shares were down 5.6% in pre-market trading in New York.
The maker of the iconic green and yellow machines used to plant and harvest crops estimated 2025 net income between $5 billion to $5.5 billion, steady with an initial outlook in November. Deere also reported first-quarter net income of $869 million, above an estimate for $848.7 million.
Deere said sales in the key North American market will be down about 30% this year. Farmers are struggling to profit amid relatively low grain and oilseed prices and elevated costs for machinery and seeds. Overall, American farm income is expected to rise for the first time in three years in 2025 but much of the gains are linked to government assistance, according to the US Department of Agriculture.
“Deere’s performance in the first quarter highlights our continued focus on optimizing inventory,” Chief Executive Officer John May said in a Thursday statement. “We’re seeing compelling evidence that our efforts are positioning the company to successfully navigate the current environment.”
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