Deere & Company reported a second-quarter net income of $1.8 billion, down from $2.3 billion in the same quarter last year. Despite the decline, results have still beat market expectations. Net sales for production and precision agriculture fell 21%, driven by reduced global demand and mounting tariff-related costs, which added $100 million in expenses this quarter and could top $500 million for the year.
Tariffs are expected to most heavily impact Deere’s construction and forestry division. Despite the financial pressure, Chairman and CEO John May emphasized the company’s commitment to long-term investment, announcing plans to invest $20 billion in U.S. operations over the next decade. This includes upgrading over 60 manufacturing facilities as Deere aims to bolster production of U.S.-built products.
Photo Credit: John Deere
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