By Bob Tita
Farm and construction equipment manufacturer Deere said it should be able to deflect higher costs this year from U.S. tariffs on imported goods.
Illinois-based Deere said more than three-quarters of the equipment it sells is made in the U.S. and that it exports more equipment from America than it imports. The company plans to rely on its network of duplicate suppliers to lower its exposure to tariffs, Josh Beal, director for investor relations, told analysts on a conference call.
The company said about 10% of its components for its machinery come from Mexico and 1% comes from Canada. Beal said higher tariffs on imports from China ordered recently by President Trump will be "immaterial" on Deere's costs since less than 2% of its components are sourced from the country.
The company drew the ire of Trump last year when it announced plans to move assembly of some models of construction loaders to Mexico to free up production space for other products at a Dubuque, Iowa, plant.
Deere on Thursday reported a 50% drop in its quarterly profit from a continued slump in the farm-equipment market. Equipment sales sank by 35% from the same period a year earlier to $6.8 billion. Shares are trading down nearly 2%.
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(END) Dow Jones Newswires
February 13, 2025 13:11 ET (18:11 GMT)
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