Deere lowered its full-year outlook due to declining profit and sales in the fiscal third quarter. The company faced challenges with weaker volumes and tariff costs. Despite falling profit and revenue, results exceeded analyst expectations. Shares dropped 6.1% in premarket trading.

Deere managed inventories to match production with retail demand. The company is working to offset $500 million in tariff costs this year. Higher prices for certain products boosted results, but unfavorable price realizations impacted performance. Deere expects net income of $4.75 billion to $5.25 billion for fiscal 2025.

In the third quarter, Deere’s profit was $1.29 billion, down from $1.73 billion the previous year. Earnings per share of $4.75 surpassed analyst expectations. Net sales fell 9% to $10.36 billion. Sales in production and precision-agriculture business dropped 16% to $4.27 billion, while construction-and-forestry sales decreased 5.4% to $3.06 billion.

Read more at Yahoo Finance: Deere Cuts Outlook as 3Q Profit, Revenue Fall