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I DA U N I V E R S A L J u l y -Au g u s t 2 0 1 6 21 TRENDS AND TIDBITS continued from page 19 Trends continued on page 51 Deere & Co. cut its profi t outlook again and reported a decline in quarterly earnings,as a global farm recession and weak construc- tion equipment markets led to lower sales of the company's machinery. Deere reduced its fi scal-year net income forecast to $1.2 billion from $1.3 billion. Its shares fell 3.8 percent to $79.10 in early trading, as investors shrugged off higher-than-expected earnings and revenue for the second quarter ended on April 30. In 2015, the company had forecast net income of $1.4 billion for this fi scal year. J.P. Morgan analyst Ann Duignan said Deere, along with other agriculture, construction and mining equipment companies such as Caterpillar Inc, AGCO Corp., Joy Global Inc. and CNH Industrial NV, could face higher costs on increased cold rolled steel prices, which are up 64 percent year-to- date. "Given these industries are already under signifi cant pressure,…the opportunity to off set higher costs with price increases is likely very limited," Duignan wrote in a research note. Deere also forecast a fi scal-year sales decline of nine percent, less steep than the 10 percent it had previously expected. Net income attrib- utable to Deere fell to $495.4 million, or $1.56 per share, in the second quarter from $690.5 million, or $2.03 per share, a year earlier. Analysts on average had expected $461.46 million, according to omson Reuters I/B/E/S. Net revenue decreased by four percent to $7.88 billion, while analysts had expected $6.72 billion. In the agriculture and turf segment, the larger of Deere's two equipment businesses, sales were fl at at $5.7 billion. Global sales in the construction and forestry segment fell 16 percent to about $1.4 billion. Equipment sales fell six percent in the United States and Canada and decreased one percent internationally. e John Deere Capital Corp. fi nancial services arm's net income dropped 40 percent to $69.6 million on bigger losses on lease residual values, less favorable fi nancing spreads Deere Posts Lower Quarterly Results, Cuts Profi t Outlook Company hit by softness in agriculture and construction. and increased provisions for credit losses. Deere forecast industry- wide agricultural equipment sales to decline 15 percent to 20 percent in the United States and Canada and to be fl at to down fi ve percent in the European Union in 2016, due to low commodity prices and stagnant farm income. It expects the high horsepower category to show the steepest drop. Economic and political turmoil in Brazil is likely to push industry agricultural equipment sales down about 15 percent to 20 percent in South America, Deere said. It forecast fl at to slightly lower sales of those products in Asia, citing the weak Chinese economy. ● http://fortune.com, 5/16