CHICAGO (Reuters) - Deere & Co, the world's largest tractor manufacturer, reported quarterly earnings on Wednesday that missed Wall Street estimates, hurt by a slowdown in agriculture equipment sales amid a deepening trade war with China that has depressed U.S. farm commodity prices.
The company reported an adjusted profit of $2.30 per share for the fourth quarter ended on Oct. 28 below estimates of $2.45, according to Refinitiv data.
Agriculture & turf equipment sales rose 3 percent in the latest quarter, compared with an 18 percent increase in the previous quarter.
Deere said currency translation had a negative effect of 7 percent on net sales outside the United States and Canada during the quarter.
The Moline, Illinois-based company said it expects net income of about $3.6 billion in fiscal 2019 as sales rise about 7 percent.
The showdown with China, one of the biggest export markets for U.S. agricultural products, is further squeezing American farmers whose incomes have been under a siege for the past four years amid a global grain glut.
Last year, China imported 32 million tons of soybeans from the United States. But this year the country has not purchased any of the U.S. crop after Beijing slapped a 25 percent tariff on U.S. imports in July. The move was in retaliation for U.S. duties on Chinese goods imposed by U.S. President Donald Trump.
Deere said industry sales of agricultural equipment in North America, its biggest market, are expected to be flat to up 5 percent next year. It forecast a 10 percent increase for 2018.
Deere shares fell 2 percent in light premarket trading. The stock has fallen over 19 percent since late January.
(Reporting by Rajesh Kumar Singh in Chicago; Editing by Jason Neely and Jeffrey Benkoe)
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