Deere & Company shares fell after posting mixed third-quarter results and trimming its full-year profit forecast. Earnings per share beat expectations at $4.75, with a 9% decline in sales to $12.02 billion. Production and precision agriculture sales decreased 16% while small agriculture and turf sales decreased 1%.

Operating profit for Deere decreased due to higher tariffs, partially offset by reductions in warranty expenses and lower production costs. Construction and forestry sales decreased by 5%, with a 47% decrease in operating profit. Deere’s financial services reported a 34% increase in net income to $205 million.

Deere narrowed its fiscal 2025 net income guidance to between $4.75 billion and $5.25 billion. The company remains committed to delivering solutions that address customer needs while laying the groundwork for future growth. For fiscal 2025, Deere expects declines in production and precision agriculture sales, small agriculture and turf revenues, and construction and forestry sales.

During the earnings conference call, Deere executives noted tariff costs of about $200 million in the third quarter, with the pre-tariff impact forecast for 2025 approaching $600 million. More uncertainty in the North American agricultural market was highlighted, with lean factory operations to match demand. Deere expects declines in U.S. and Canada large agriculture equipment sales, small agriculture and turf equipment sales, and construction equipment sales.

DE stock is trading lower by 6.49% at $480.22. The company sees challenges in the market but remains confident in its future despite near-term uncertainty. Deere will continue to address industry challenges with advanced technologies to improve productivity and customer outcomes.

Read more at Yahoo Finance: Tariffs Take A Bite Out Of Deere Profit, Demand Challenges Hit Core Businesses (UPDATED)