After a disappointing earnings report that saw the company lowering its full-year income and equipment sales expectations, Deere & Company's (NYSE: DE )
management was obliged to outline how it would deal with weaker
conditions. Current conditions are difficult in the farming machinery
industry; but what is Deere doing about it? It's time to look at the
five key takeaways from its third-quarter conference call.
Deere's end markets getting weaker
As Fools can read about here, Deere's latest earnings report produced a downgrade to sales expectations in its core agriculture and turf segment -- 81% of sales year to date. Essentially, the problem is that weak crop prices are lowering farmers' profits and encouraging them to hold back on purchasing farming equipment.
While lower crop prices are likely to impact farmers everywhere, the first takeaway relates to some specific commentary on China in both agriculture and construction. This is something that investors in Caterpillar should follow closely, too.
READ THE FULL ARTICLE HERE
Deere's end markets getting weaker
As Fools can read about here, Deere's latest earnings report produced a downgrade to sales expectations in its core agriculture and turf segment -- 81% of sales year to date. Essentially, the problem is that weak crop prices are lowering farmers' profits and encouraging them to hold back on purchasing farming equipment.
While lower crop prices are likely to impact farmers everywhere, the first takeaway relates to some specific commentary on China in both agriculture and construction. This is something that investors in Caterpillar should follow closely, too.
READ THE FULL ARTICLE HERE
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