Deere & Co. sales were $12.8 billion in the second quarter, down 16% from the same period a year ago. Net income was down 24% to $1.8 billion. The company widened its full-year outlook for income by lowering the bottom of the range. That range is now between $4.75 billion and $5.5 billion.
Year to date, sales are down 22% and net income is down 35% compared to the previous year. Deere says $100 million in tariffs affected the second quarter and—based on levels as of May 13—forecasts a total tariff hit for the year of $500 million.
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For Construction & Forestry, Q2 sales were $2.9 billion, down 23% from $3.8 billion the previous year. Profit for the division dropped 43% to $379 million. The company cited lower volumes and price pressures. It expects full-year sales to be down 10% for construction equipment and down 15% for compact equipment.
During its earnings call, Deere management displayed a graphic showing its U.S. sourcing by geography. The illustration showed 79% of whole goods and 76% of components originate within the United States. For whole goods, 9% originate from Europe and for parts, 10% originate from Mexico.
Roadbuilding machines—Wirtgen equipment—are imported from Germany and some excavators are imported from Japan. Earthmoving manufacturing relies on parts made in China.
