Deere, AGCO, CNH all cutting production

[Diggin It]

Half a dozen dealers of Deere's agriculture equipment across the Midwest shared similar accounts in interviews with Reuters. One of those dealers, in Geneseo, Illinois, said sales at his dealership were down 50% so far this year from the same period last year.

This is a worrying sign for Deere, which gets nearly 60% of its sales from the United States and Canada. The Moline, Illinois-based company is expected to report lower sales at its agriculture & turf segment when it reports its third-quarter earnings on Aug. 16.

The segment, which accounts for the bulk of the company's sales, is expected to report quarterly sales of $6.24 billion, compared with $6.29 billion a year ago, according to Refinitiv IBES average analyst estimate.

To prevent a supply glut, U.S. agricultural machine maker AGCO Corp (AGCO.N) and CNH have slashed production to keep inventory in line with retail demand.

A similar concern prompted Deere to cut production by 20% at two of its large factories in North America.

Farm equipment maker Deere's dealers reel from trade war, bad weather - Reuters

 

[Industrial Toys]

It might be ignored by many (optimists) , but there is a GLOBAL downturn in manufacturing. That and a few other ugly things brewing. Could make for the perfect storm.