CHICAGO, Aug. 16 (Xinhua) -- John Deere, a leading U.S. agricultural equipment maker, lowered its 2019 outlook again on Friday amid prolonged U.S.-China trade tensions.
The company's equipment sales are now projected to increase by about 4 percent for fiscal 2019 compared with 2018.
In February, John Deere had forecast a 7-percent rise in equipment sales year on year, which was lowered in May to 5 percent, citing U.S. farmers' reluctance to make major equipment purchases due to concerns about declining demand for U.S. soybeans, especially from China.
John Deere made the latest downward adjustment on Friday as it reported a 3-percent sales slide during the third fiscal quarter ending July 28, 2019.
Although the company's construction and forestry segment reported higher quarterly profits, the continued uncertainty in agricultural sector weighed on overall results.
John Deere's net agricultural equipment sales in the third quarter were down 6 percent year on year, with operating profit in this segment plunging 24 percent.
"John Deere's third-quarter results reflected the high degree of uncertainty that continues to overshadow the agricultural sector," said Samuel R. Allen, chairman and chief executive officer.
"Concerns about export-market access, near-term demand for commodities such as soybeans, and overall crop conditions, have caused many farmers to postpone major equipment purchases," he added.
China used to import a large quantity of U.S. soybeans. However, escalating trade tensions between the two countries and export sales uncertainty have made U.S. farmers hesitate to buy new equipment, said analysts.
Following the latest adjustment, John Deere's net income for fiscal 2019 is forecast to be about 3.2 billion U.S. dollars.
