(Bloomberg) -- Bullish Deere & Co. investors just got some sobering news, with smaller tractor-making rival AGCO Corp. delivering below-consensus earnings and guidance.
AGCO results and a predicted first-half loss indicate U.S. farmers remain reluctant to splash out on equipment even after Washington signed a trade truce with Beijing and billions in government aid prop up income levels and rural sentiment.
Shares in AGCO slumped as much as 8.2% on Thursday. The Duluth, Georgia-based company -- which like Deere also does plenty of business in China -- said it’s feeling the impact of African swine fever in Asia and is keeping close watch on coronavirus.
“The production levels are secured at least through probably mid-March, and then we’ll start to see if there is going to be any disruptions” due to the spread of the virus, Chief Executive Officer Martin Richenhagen said on the company’s earnings call.
Deere reports later this month.
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