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Deere's CEO Calls Out Tariffs, Trade as Profit Disappoints

  • Farm-economy angst signals fewer purchases of large equipment
  • Shares slump; company cites higher raw-material costs
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U.S. farmers, struggling with global trade disputes, are getting stingier on spending, and that apparently includes Deere & Co.’s iconic yellow and green tractors and combines.

The world’s biggest agricultural equipment maker reported first-quarter results that missed analyst estimates for sales and profit. Chief Executive Officer Samuel Allen cited worries by farmers struggling with the impact of tariffs and trade spats with China and other nations. Higher costs for raw materials such as steel have also taken a toll. The shares declined in response.