(Reuters) – Deere & Co cut the lower end of its annual profit forecast on Thursday over softer demand for its tractors from farmers opting to rent machines instead.
Farmers facing high interest rates and weaker crop prices are leaning more towards renting rather than buying machinery, hitting sales of big-ticket equipment such as tractors and combines.
Tariffs imposed by U.S. President Donald Trump have added to production costs and led to uncertainty for large industrial firms in international markets.
The world’s largest agricultural-equipment maker expects its annual net income to now be between $4.75 billion and $5.5 billion, compared to its prior forecast of $5 billion to $5.5 billion.
(Reporting by Nathan Gomes in Bengaluru; Editing by Pooja Desai)
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