In a fresh sign of weakness in the farm economy, Deere and Co. is reducing production of farm equipment.
The company said in issuing its quarterly report Friday that it anticipates production levels to be “below retail sales” the second half of this year. CEO Samuel Allen said “softening conditions” in the agricultural sector have led the company to take a “more cautious approach” for the year.
Deere’s net income dropped to $1.13 billion in the latest quarter from $1.2 billion for the same period a year ago.
Overall, U.S. equipment sales recently have been mixed, according to the Association of Equipment Manufacturers. Tractor sales grew 12 percent, but combines saw a 4.2 percent drop from this time last year.