Deere & Co. (NYSE:DE) reported a drop in fourth-quarter profit on Wednesday, as the agricultural equipment maker continued to feel the impact of weaker margins in its tractor and combine harvester business.
The stock slid roughly 4% in premarket trading following the announcement.
The company—famous for its signature green-and-yellow machinery—derives nearly half of its revenue from U.S. farmers. But subdued crop prices and a growing preference for lower-cost equipment rentals have curbed appetite for new purchases, pressuring sales across key product lines.
Deere has also felt the effects of President Donald Trump’s broad tariffs, which have raised costs for manufacturers dependent on imported materials and added strain across the industrial sector.
For the quarter, Deere reported net income of $1.06 billion, or $3.93 per share—down from $1.24 billion, or $4.55 per share, in the same period last year.