DE - Deere & Company

NYSE - NYSE Delayed Price. Currency in USD
147.02
-8.35 (-5.37%)
At close: 4:00PM EDT
Stock chart is not supported by your current browser
Previous Close155.37
Open151.00
Bid147.42 x 800
Ask147.45 x 800
Day's Range146.30 - 153.82
52 Week Range128.32 - 171.22
Volume2,889,437
Avg. Volume2,043,815
Market Cap46.605B
Beta (3Y Monthly)1.38
PE Ratio (TTM)14.28
EPS (TTM)10.30
Earnings DateAug 16, 2019
Forward Dividend & Yield3.04 (1.96%)
Ex-Dividend Date2019-06-27
1y Target Est167.84
Trade prices are not sourced from all markets
  • Deere blames earnings miss on U.S.-China trade war
    Yahoo Finance Video

    Deere blames earnings miss on U.S.-China trade war

    Deere missed earnings expectations for its fiscal third quarter and lowered its guidance for the full year. Yahoo Finance's Brian Sozzi joins Akiko Fujita on 'The Ticker' to discuss.

  • Deere blames Q3 earnings miss on the trade war
    Yahoo Finance Video

    Deere blames Q3 earnings miss on the trade war

    Deere earnings fell short in the third quarter. The equipment company is blaming the miss on delayed purchases from farmers due to the ongoing trade war. J.P. Morgan U.S. Machinery Analyst, Ann Duignan joins Yahoo Finance’s On The Move panel to discuss.

  • 3 Major Casualties of China’s New Tariffs
    TipRanks

    3 Major Casualties of China’s New Tariffs

    The US-China trade tensions have taken a turn for the worse in recent days. On Friday, China announced new tariffs on $75 billion worth of imported American goods, and a resumption of the 5% tariff on automotive parts. The new tariffs, to set between 5% and 10% and come into effect in steps on September 1 and December 15, include levies on electronics and machinery. President Trump responded in his customary fashion, by Tweet, saying in part, “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” He added that the trade situation represents an opportunity for the US.Investors don’t seem to agree. Markets reacted to China’s and Trump’s announcements by plunging. Both the S&P 500 and Dow Jones averages fell 2.4% in Friday’s trading, and the tech-heavy NASDAQ slipped 3%. The losses were widespread, and not confined to any one sector of the market. Major companies with large exposure to the China trade were especially hard-hit. Here we take a look at three of those casualties. Apple, Inc. (AAPL)The world’s second largest publicly traded company lost 4.62% in the Friday market rout, falling over $9.80 per share. That Apple would prove particularly sensitive to shifts in the ‘trade war’ is no surprise; the Chinese market is Apple’s second largest, accounting for more than 18% of the company’s total revenues. The tit-for-tat tariff actions taken by the US and China have threatened the trade in electronics – and Apple’s supply chain. In response, the company is considering a drastic measure: the shift of 15% to 30% of its production from China to other areas of Southeast Asia. That Apple would consider such a drastic move underlines the risks of the trade war for the high-tech sector.Pointing out that nearly all of Apple’s flagship product line, the iPhone, is assembled in China, 4-star analyst Daniel Ives, from Wedbush, described Friday’s trade-war ramp-up as “a gut punch to Cupertino.” Even with that, however, Ives still sees Apple as a stock worth buying, and his $245 price target on AAPL shares suggest an upside of 20%.Despite the beating it took on Friday, AAPL retains its Moderate Buy rating from the analyst consensus. The stock has received 16 buys, 10 holds, and 1 sell in the past three months, with 6 of those buy ratings coming in just the last three weeks. Apple stock is trading for $202, and the average price target o $226 gives it an 11% upside potential. Caterpillar, Inc. (CAT)Caterpillar was hurting before this latest iteration of the trade conflict. The company is a major manufacturer and supplier of heavy construction and excavation equipment, with customers around the world. The general slowdown in the global economy has been eating into Cat’s sales, including in China, and the escalation in the tariff fight has made a difficult situation worse.The deterioration of Caterpillar’s position is made clear by the company’s losses in Friday’s trading: CAT stock fell 3.25%. The Friday losses come after CAT slipped more than 12% in August, following a 10.25% EPS reported for the second quarter.Cat hasn’t got an easy way out of its difficulties, either. According to 4-star analyst Jerry Revich, of Goldman Sachs, the construction industry is seeing rising inventories of trucks and construction machines; he predicts that there will have to be production cuts on the manufacturing end next year. In line with that, he gives CAT a Hold rating and a $130 price target.Stephens analyst Ashish Gupta agrees, saying, “For Caterpillar, excess dealer inventory means lower reported sales in coming quarters.” He goes on to add that, “The U.S. China trade war and Chinese impact on global commodity markets are reasons to avoid the stock right now. China accounts for a huge portion of global metals and energy consumption. A slowing Chinese economy has large ripple effects for the entire resource industry—a key consumer of Caterpillar products.” Ashish rates CAT as a Sell, with a low $100 price target.CAT is the lowest rated of the stocks in this list, with a Hold from the analyst consensus. The consensus rating is based on 7 buys, 5 holds, and 4 sells set in the past three months. The stocks’ share price of $114 and average price target of $136 still give it an upside potential of 19%. Deere & Company (DE)Like Caterpillar, Deere is a major manufacturer of heavy machinery; in this case, farm and agricultural equipment. And also like Caterpillar, Deere has been suffering as worldwide economic conditions have slowed down. And in a final similarity, Deere reported disappointing EPS in its most recent quarter, missing the forecast by 3.32%.China’s largest import from the US is agricultural products, especially soybeans. As the Chinese government cracks down on trade, with retaliatory measures, US farmers are watching their prospects for a profitable year go up in smoke. And that leads them to cut back on sales and maintenance of their heavy equipment, dealing a double punch to Deere in its domestic market. At the same time, the company is facing direct headwinds from the new Chinese tariffs. Deere stock lost 5.37% in Friday's market retreat. Rising factory production costs and bad weather, which would have been news stories in a normal year, have simply dealt additional blows to an already vulnerable company.At the same time, even with this perfect storm working against it, DE shares are getting upbeat reviews from Wall Street’s analysts. Writing from Credit Suisse, 4-star analyst Jamie Cook says of the quarterly report, “…expectations were sufficiently low heading into the print reflecting macro/trade war uncertainty, commodity prices and unfavorable weather which delayed planting,” and reiterates his belief that the company will beat the headwinds in the long run. He raises his price target on Deere to $197 (up 12%), suggesting an upside of 34%.From BMO Capital, Joel Tiss acknowledges slowing North American sales and a flat early-order program, but points out, “…the overall sales value was higher because of better take rates of innovative technologies and bigger machines.” Like Cook, Tiss gives Deere a Buy rating. His $175 implies a 19% upside potential.Deere is another stock with a Moderate Buy from the analyst consensus, this one based on 9 buys and 4 holds. The stock is selling for $147, has a $167 average price target, and an upside potential of 14%.Visit TipRanks’ Analysts’ Top Stocks tool, and find out which stocks are trending now Wall Street’s top market watchers.Disclosure: This author is long on AAPL.

  • Soybeans Sink as China Hikes Tariffs on American Farm Products
    Bloomberg

    Soybeans Sink as China Hikes Tariffs on American Farm Products

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The news just turned gloomier for U.S. farmers.China announced on Friday that it will impose additional tariffs on $75 billion of U.S. goods in retaliation for President Donald Trump’s latest planned levies on Chinese imports. The measures include an added 5% tariff on soybeans and 10% on American pork as of Sept. 1. Corn and cotton products were also on the list.November soybean futures in Chicago erased early gains and closed down 1.4%, extending losses after Trump said he’ll announce a response to the latest Chinese tariffs Friday afternoon. Cotton and hog futures both slumped, as did shares in crop handler Andersons Inc. and tractor maker Deere & Co.Corn also declined, although with China no longer a big player in U.S. corn, traders are more focused on Midwest crop development than the trade war.“This escalation will affect us not because of the increasing tariff on our sales, which have been at a virtual standstill for months, but through time,” Davie Stephens, president of the American Soybean Association, said in an emailed statement. “The longevity of this situation means worsening circumstances for soy growers who still have unsold product from this past season and new crops in the ground this season.”China, the world’s top soy importer, has already had a 25% tariff on the U.S. crop and has curbed purchases of American farm products for months as trade tensions simmer between the nations.“As far as supply and demand, it means nothing because buyers weren’t buying anyways,” said Arlan Suderman, chief commodities economist at INTL FCStone. “It’s more about making headlines than it is actually changing the amount of soybeans that flow between the U.S. and China.”Tensions have been increasing in the American farm community in recent weeks. Farmers leveled criticism at Agriculture Secretary Sonny Perdue at a fair in Minnesota earlier this month over Trump’s yearlong trade war with China, which has eroded demand for agricultural products and pressured already low prices. Top Trump administration officials also met this week to consider options for quelling a backlash in the Midwest over recent biofuel policy moves.The spat between the U.S. and China has spurred added demand for South American soybeans. Export prices at Brazil’s Paranagua port are widening versus U.S. Gulf supply, Commodity3 data show.U.S. farmers will begin harvesting this year’s soybean crops starting in September. Stockpiles were expected to balloon to an all-time high in the season that ends this month as American export demand dims.The trade-war escalations are going to keep some U.S. supplies out of export markets, said Ken Eriksen, senior vice president at Agribusiness Intelligence IHS Markit.“The seesaw, back-and-forth action of the last few weeks, this is just more damaging to seeing soybean exports, pork exports and beef exports to continue going to China,” he said.\--With assistance from Michael Hirtzer.To contact the reporters on this story: Megan Durisin in London at mdurisin1@bloomberg.net;Ashley Robinson in Winnipeg (Non BLP Loc) at arobinson193@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, James Attwood, Steven FrankFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Trump Orders Biofuel Boost in Bid to Temper Farm State Anger

    (Bloomberg) -- President Donald Trump, seeking to tamp down political fallout in U.S. farm states essential to his re-election, has ordered federal agencies to shift course on relieving some oil refineries of requirements to use biofuel such as corn-based ethanol.Trump and top cabinet leaders decided late Thursday they wouldn’t make changes to just-issued waivers that allow small refineries to ignore the mandates, but agreed to start boosting biofuel-blending quotas to make up for expected exemptions beginning in 2021. The outcome was described by four people familiar with the matter who asked not to be named before a formal announcement could be made.The decision was reached after a flurry of White House meetings this week on the issue, which divides two of Trump’s top political constituencies: rural Americans and the oil industry. With the move, Trump is largely siding with farmers, ethanol producers and political leaders in Iowa that have accused the president of turning his back on the industry.But the administration’s shift risks blowback in Pennsylvania and other battleground states, where blue-collar refinery workers have held rallies to push for relief from U.S. biofuel quotas they say are too expensive. The largest coalition of U.S. building trades unions on Thursday warned Trump that changing course on exemptions would betray the president’s “campaign promise to protect every manufacturing job.” Encouraging E15“President Trump is committed to ensuring our country not only continues to be the agricultural envy of the world, but also remains energy independent and secure,” White House spokesman Judd Deere said.Iowa-based biodiesel producer Renewable Energy Group Inc. climbed as much as 4.5% on the news, and traded up 5.5% to $11.64 at 1:50 p.m. in New York. Pacific Ethanol Inc. and Green Plains Inc. briefly gained before resuming losses as the U.S.-China trade war showed signs of deepening with the latter announcing plans to levy additional tariffs on American-made goods and Trump promising to respond.Administration officials agreed to the broad contours of a renewable fuel plan, including further moves to encourage the use of E15 gasoline containing 15% ethanol, beyond the 10% variety common across the U.S. E15 could be dispensed alongside conventional ethanol blends at filling stations, under the drafted changes.EPA’s PlanUnder the tentative plan, the Environmental Protection Agency also will give a 500-million-gallon boost to the amount of conventional renewable fuel, such as ethanol, that must be used in 2020. A separate quota for biodiesel, typically made from soybeans, would get a 250 million gallon increase.Additionally, the administration will enhance a program meant to expand U.S. fueling infrastructure and get more ethanol into the system. The EPA will adopt an Agriculture Department assessment of the greenhouse gas emissions associated with renewable fuel, and will expand environmental credits encouraging automakers to produce “flex-fuel” vehicles that can run on high-ethanol gasoline. Iowa BacklashThe EPA has drawn intense criticism for its Aug. 9 decision to exempt 31 refineries from 2018 biofuel-blending requirements. Although federal law authorizes the waivers for small refineries facing an economic hardship, the number of those exemptions has surged during the Trump administration, and biofuel producers say they are being handed out too freely.The backlash has been most severe in Iowa, the nation’s top producer of ethanol and the corn used in its manufacture. It is also critical for Trump’s re-election; the state twice voted for Barack Obama before voting to send Trump to the White House in 2016.Trump’s Democratic challengers have seized on the issue, with frontrunner Joe Biden accusing the president of lying to farmers and abandoning a campaign promise to “unleash ethanol.” However, EPA officials and oil industry leaders say the waivers haven’t harmed domestic ethanol demand and blame a glut of the product for suppressing prices. Trump’s trade war with China has exacerbated the industry’s economic challenges. As with U.S.-grown agricultural products, including soybeans, ethanol faces retaliatory tariffs in China. Latest BlowAgainst the backdrop of tariffs, the exemptions delivered another blow to the U.S. Midwest, where guaranteed domestic ethanol demand helps provide a floor of support for corn farmers and buttresses swings in commodity prices. Ethanol refining accounts for about 40% of U.S. corn consumption.American “agriculture has a problem if ethanol doesn’t do well,” Green Plains Inc. chief executive officer Todd Becker said in a telephone interview on Thursday. The Omaha, Nebraska-based company created a political action committee last month, and Becker told analysts in May that Green Plains plans to “engage” 2020 U.S. presidential candidates on ethanol policies. Becker said he “can’t fault” Trump for getting tough on China, but the combination of the trade war and small refinery exemptions was causing too much pain. “You don’t fight China and then give out SREs,” Becker said. “Farmers are furious now.”Biofuel QuotasAgriculture Secretary Sonny Perdue had urged the White House to rescind some of the recently issued waivers -- at least those for refineries tied to “big” oil companies -- according to an Aug. 20 memo obtained by Bloomberg.EPA officials successfully argued that would be illegal.Instead, Trump directed the agency to increase biofuel quotas to make up for the exemptions, a so-called “reallocation” that will effectively boost the burden for larger refineries that are not eligible to win waivers. The EPA will start incorporating expected exemptions into annual biofuel quotas beginning with 2021.Oil industry leaders blasted the tentative agreement on Friday, saying it would do little for U.S. farmers while hurting domestic refiners.“Reallocation would be a major hit to fuel manufacturers in Pennsylvania and Ohio -- and refinery workers across the country -- with zero benefit to ethanol,” said Derrick Morgan, a senior vice president with the American Fuel and Petrochemical Manufacturers. “Those celebrating will ultimately be foreign biofuel producers whose biodiesel is being imported to help meet mandates.” ‘Arbitrary’ PolicyThe EPA typically sets each year’s biofuel blending requirements by Nov. 30 of the preceding year, except for biodiesel quotas, which are set two years in advance. Under the U.S. Renewable Fuel Standard program, there’s a specific mandate for biodiesel, but the soybean-based product can also be used to satisfy an implied 15 billion gallon quota for conventional renewable fuel.Frank Macchiarola, a vice president at the American Petroleum Institute, called the drafted plan a “rushed, arbitrary policy.”“We hope the administration walks back from the brink of a disastrous political decision that punishes American drivers,” Macchiarola said. “Bad policy is bad politics.”Although the tentative plan was meant to assuage biofuel allies, it’s not clear it was having the intended effect Friday, amid industry skepticism the EPA will follow through on the agreement. Iowa officials are preparing to visit Washington for a formal rollout of the policy changes.Biodiesel industry advocates say they can produce more fuel -- and the Trump administration needs to take that into account.“With a level playing field in biodiesel trade in 2018, domestic producers increased output by several hundred million gallons,” said National Biodiesel Board spokesman Paul Winters. “We can continue to do so -- as long as EPA stops using RFS waivers to destroy demand and put biodiesel producers out of business.” (Updates with more details on tentative plan from ninth paragraph.)\--With assistance from Jennifer Jacobs.To contact the reporters on this story: Jennifer A. Dlouhy in Washington at jdlouhy1@bloomberg.net;Mario Parker in Chicago at mparker22@bloomberg.netTo contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, Elizabeth Wasserman, Ros KrasnyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Construction Demand to Buoy Deere Till Agriculture Picks Up
    Zacks

    Construction Demand to Buoy Deere Till Agriculture Picks Up

    Deere (DE) projects global sales for its Construction & Forestry segment to grow 10% in fiscal 2019, backed by the Wirtgen acquisition as well as strong demand for equipment.

  • Thomson Reuters StreetEvents

    Edited Transcript of DE earnings conference call or presentation 16-Aug-19 2:00pm GMT

    Q3 2019 Deere & Co Earnings Call

  • Stakeholder Capitalism Will Fail If It’s Just Talk
    Bloomberg

    Stakeholder Capitalism Will Fail If It’s Just Talk

    (Bloomberg Opinion) -- For 47 years, the Business Roundtable has lobbied on behalf of corporate America. Much of that time, it maintained a fiction(1) -- that the sole purpose of a corporation was to maximize profits on behalf of shareholders. This philosophy has been under assault for several years now, and this week the Business Roundtable announced it wants to put it to rest.In a widely circulated memo, the 200-member organization reversed itself, writing that "shareholder primacy” is no longer the sole purpose of a corporation. Instead, corporations must include a commitment to “all stakeholders,” which includes customers, employees, suppliers and local communities.Some kudos are in order for JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, and chairman of the Business Roundtable, for driving these changes. He has been discussing the need for a more inclusive form of capitalism, both in public speeches and in his letters to shareholders, for some time.But turning this aircraft carrier around won’t be easy, in large part because of the group's own history. Indeed, the Roundtable has spent most of the past four decades advocating against the interests of those exact stakeholders. To cite some of the more notable examples:\-- It fought the rise of labor unions and pro-union legislation;\-- Helped to defeat antitrust bills;\-- Prevented the formation of the Consumer Protection Agency;\-- Opposed corporate governance changes to make boards of directors and CEOs more accountable to stockholders;\-- Fought proper accounting of stock options given as compensation to executives and insiders;\-- Opposed increases in the national minimum wage (it now favors increases);\-- Lobbied to prevent restrictions on executive compensation;\-- Fought legislation that would create cleaner energy and address climate change;\-- Pushed for corporate income-tax cuts;\-- Supported anti-consumer Supreme Court decisions, including the fiction that corporations are legal people, and that campaign donations equal speech.   The Roundtable might respond that this is all in the past. Let’s hope so. But the organization has an even greater challenge: Scan the list of 181 signatories to the recent memo and it's a Who’s Who of corporate behavior that has burdened and disadvantaged the very stakeholders they will now champion.Consider a few of the signatories:\-- Amazon.com Inc. and Apple Inc.:  Two of the most valuable companies in the world are famously effective at using various tax dodges to avoid paying their fair share. I can recall when the Internal Revenue Service went after maneuvers that serve no valid business purpose other than tax avoidance. Consider that what isn't paid in tax by those who avoid them must be made up for by those who do -- mostly average Americans who also happen to be customers of these companies.The share of federal tax revenue paid by corporations has dropped by two-thirds in the past seven decades -- from 32% in 1952 to 10% in 2013; and corporate income tax as a share of gross domestic product has fallen from about 6% in 1946 to about 1.5% today.\-- Visa Inc., Mastercard Inc. and American Express Co.: Show good faith -- working with card-issuing banks as needed -- by simplifying the incomprehensible small print in the cardholder agreement and spell out in clear language the terms and penalties for late payment. Second, do the same for mandatory arbitration clauses that take away the right of customers to seek redress in public courts.\-- Ameriprise Financial Inc., Morgan Stanley and Principal Financial Group Inc: The brokers and insurers on the list have been zealous opponents of the fiduciary rule. Instead, they prefer a less stringent rule that allows them to sell products that are better for them than for their customers. Until those firms -- and Citigroup Inc. and JPMorgan are in this group -- embrace a higher duty of care, their gestures toward stakeholders are hollow. Oh, and they should drop the requirement that customers agree to mandatory arbitration clauses as one of the conditions for opening a brokerage account.\-- Coca Cola Co. and PepsiCo Inc.: For years these companies have been helping the American public achieve record levels of diabetes and obesity by selling health-damaging sugary drinks. They should acknowledge and warn customers of the consequences of consuming too much of their products, and accept the same kinds of taxes and health warnings now affixed to cigarettes.\-- Deere & Co.: The maker of farm machinery has led the fight against customers, insisting that they not make repairs to the equipment they own, and denying them access to parts and instructions. Repairs can only be made by Deere service technicians in what has come to be known as a “repair monopoly.” Apple, by the way, does the same thing.\-- Walmart Inc. and McDonald's Corp.: Both were steadfast opponents of increases in minimum wages for years. Although both now offer higher minimum pay, it was only after a tightening labor market forced them to increase wages. But this wasn't a case of corporate altruism -- their stores were messy and employees were sullen, and pay increases were part of plans to keep ill-treated customers from defecting. (McDonald's is not a signatory to the Roundtable memo).For the Roundtable commitment to be meaningful, the signatories are going to have to alter their behavior in ways large and small, and maybe even in ways that aren't always optimal for maximizing short-term profits. Still, we should be encouraged. But the proof will be in the follow through and the actual actions of the Roundtable members.(Corrects to clarify section on credit-card companies to indicate the role of banks in setting terms for customers.   )(1) In “The Shareholder Value Myth,” Lynn Stout explained how the entire theory is based on a misreading of a 1919 court case -- Dodge vs. Ford – at the time, both privately held, non-public companies.To contact the author of this story: Barry Ritholtz at britholtz3@bloomberg.netTo contact the editor responsible for this story: James Greiff at jgreiff@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • A US recession is probably coming so investors should just deal with it
    Yahoo Finance

    A US recession is probably coming so investors should just deal with it

    Recessions are normal. So, John and Jane Doe investors should plan ahead.

  • Benzinga

    Deere Analyst Says Company Took Earnings Miss And Guidance Cut 'In Stride'

    Deere & Company (NYSE: DE ) reported a fiscal third-quarter miss and guidance cut and the stock reacted "in stride," according to Wells Fargo. The Analyst Wells Fargo analyst Andrew Casey maintains ...

  • Company News For Aug 19, 2019
    Zacks

    Company News For Aug 19, 2019

    Companies in the news are: DE, AMAT, NVDA and DDS

  • John Deere Misses But Shares Up: Agribusiness ETFs in Focus
    Zacks

    John Deere Misses But Shares Up: Agribusiness ETFs in Focus

    Despite the weak results and guidance cut, shares of DE climbed following the results on its pledge to lower costs.

  • Trump’s tariffs and bad weather take toll on U.S. farmers
    MarketWatch

    Trump’s tariffs and bad weather take toll on U.S. farmers

    For those looking for evidence of the US-China trade war hurting the economy, one only need to look at the U.S. farm sector this week.

  • Deere & Company (NYSE:DE): Poised For Long Term Success?
    Simply Wall St.

    Deere & Company (NYSE:DE): Poised For Long Term Success?

    As Deere & Company (NYSE:DE) announced its earnings release on 28 July 2019, analysts seem fairly confident, with...

  • GuruFocus.com

    Deere's 3rd-Quarter Earnings Fall Short of Expectations

    Company posts 3% revenue decline Continue reading...

  • What Happened in the Stock Market Today
    Motley Fool

    What Happened in the Stock Market Today

    On a day stocks bounced back, NVIDIA shares rose after the company reported a strong quarter, as did those of Deere despite challenges in the agricultural industry.

  • Bloomberg

    Deere Makes Risky Call Farmers Will Use Bailout Cash on Tractors

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Deere & Co. is banking on farmers spending their bailout money on tractors. But with the trade war dragging on and farm credit conditions deteriorating, that could turn out to be a risky bet.The world’s biggest tractor maker expects its fourth-quarter sales will increase from a year earlier, with more of the Trump administration’s trade-war payments for farmers lifting farm cash receipts for 2019.The latest bailout includes $14.5 billion in direct payments to farmers, which could lead to some “incremental demand,” Deere executives told analysts on a Friday call to discuss financial results. The impact could be delayed or dampened by the tough agriculture environment, Luke Chandler, Deere’s chief economist, said.But farmer debt is rising as Trump’s trade wars have stifled export markets. Agricultural credit conditions in the seventh district deteriorated in the second quarter, with the highest portion of customers having major or severe difficulties repaying loans in 20 years, according to the Federal Reserve Bank of Chicago.Farmers may not go for six-figure tractors and combines with their windfall, said Bloomberg Intelligence analyst Chris Ciolino. They’ll more likely use it more conservatively to pay down debt, or even save it.“There’s a growing risk that the replacement cycle gets delayed beyond 2020 given the persistent trade uncertainty,” Ciolino said. “I have trouble seeing a catalyst in the near-to-mid term that will instill enough confidence.”To contact the reporters on this story: Lydia Mulvany in Chicago at lmulvany2@bloomberg.net;Isis Almeida in Chicago at ialmeida3@bloomberg.netTo contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Deere Eyes Cost Cuts to Defend Margins Squeezed by Farm Pain
    Bloomberg

    Deere Eyes Cost Cuts to Defend Margins Squeezed by Farm Pain

    (Bloomberg) -- Deere & Co. isn’t selling as many tractors these days, with trade wars raging and crop prices near multi-year lows. Since many of its farmer customers aren’t buying, the company is now looking for ways to save.The Moline, Illinois-based company said Friday it’s conducting a thorough assessment of its cost structure and taking actions to be more “nimble and efficient.”Steps include boosting organizational efficiency through a footprint assessment. The company is also looking to make investments “with the most opportunity for differentiation,” including precision agriculture. It’s aiming for a 15% structural operating profit by 2022.Executives said the company had already taken some measures in the third quarter, and was contemplating some for the fourth. All in all, these total just $25 million. More details will come in the fourth quarter call, executives said.The reductions could be more long-term structural changes to adjust to current market dynamics, which could take years, said Chris Ciolino, an analyst at Bloomberg Intelligence.Operating profit in the company’s biggest money-making segment, agriculture machinery, fell 24% from a year ago. Higher production costs was one of the culprits, along with lower shipment volumes. Deere is also forecasting slightly higher costs as a percentage of net sales for its equipment operations -- about 77% compared with 76% previously.\--With assistance from Karen Lin.To contact the reporter on this story: Lydia Mulvany in Chicago at lmulvany2@bloomberg.netTo contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Barrons.com

    Deere Stock Is Rising After Disappointing Earnings. Here’s Why.

    Poor weather has impacted U.S. farm income and, by extension, Deere’s agricultural equipment business.

  • Deere Gains as Savings Vow, Forecast Ease Investors’ Alarm
    Bloomberg

    Deere Gains as Savings Vow, Forecast Ease Investors’ Alarm

    (Bloomberg) -- Deere & Co.’s shares jumped after it pledged to lower its costs and offered an outlook cut that was less than some investors feared as it fights to overcome a disruptive trade war and a slowing global economy.The world’s top tractor maker gained the most in seven months, climbing as much as 5.1% after announcing earnings Friday to recover some of the losses earlier in the week. While quarterly earnings trailed the average estimate, its guidance and a vow to boost efficiency may have comforted investors buffeted by a tumultuous two weeks in agriculture markets.American growers are resisting major purchases as the U.S.-China trade war stretches into a second year and after a season when wild weather batters their crops. An escalation in trade tensions led to China halting purchases of American farm products, while corn prices tanked Monday when the U.S. government came out with acreage and yield numbers that exceeded estimates.“There’s been so much negative sentiment with the erosion of the trade environment and then the disastrous WASDE report,” said Chris Ciolino, a Bloomberg Intelligence analyst. “People were bracing for more doom and gloom.”With production costs in some segments rising, the Moline, Illinois based company said it’s “initiating a series of actions to make the organization more structurally efficient and profitable.”For fiscal 2019, equipment sales are now projected to rise about 4%, with net income forecast at $3.2 billion, Deere said in a statement. Three months ago, it predicted 5% equipment sales growth and $3.3 billion profit.While Deere remains positive on general economic conditions, it lowered guidance for construction and forestry and now expects fiscal 2019 economic growth in the U.S. to be in line with 2018, downgrading a previous forecast for acceleration.On a net basis, quarterly profit slipped to $899 million from $910 million a year ago. Sales fell 3%.“We view Deere’s 3Q results and outlook as more resilient than feared,” Goldman Sachs Group Inc. analysts said in a note to clients.(Adds comment in the third paragraph.)\--With assistance from Karen Lin.To contact the reporter on this story: Lydia Mulvany in Chicago at lmulvany2@bloomberg.netTo contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net, Reg GaleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Zacks

    Deere's (DE) Earnings and Revenues Miss Estimates in Q3

    Deere (DE) projects year-over-year equipment sales growth of 4% for fiscal 2019.

  • Companies to watch: Deere falls short, Nvidia posts beat, Applied Materials posts big quarter
    Yahoo Finance

    Companies to watch: Deere falls short, Nvidia posts beat, Applied Materials posts big quarter

    Deere & Co., Nvidia, Applied Materials and Facebook are the companies to watch on Friday, August 16, 2019.

  • Deere says farmers are apprehensive and scaling back big purchases
    American City Business Journals

    Deere says farmers are apprehensive and scaling back big purchases

    Deere & Co. officials said there is a "high degree of uncertainty that continues to overshadow the agricultural sector."

  • Mixed Housing Data for July
    Zacks

    Mixed Housing Data for July

    Mixed Housing Data for July