Please ensure Javascript is enabled for purposes of website accessibility

Deere & Company Withdraws Guidance Due to COVID-19 Pandemic

By Howard Smith - Mar 23, 2020 at 9:24AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company provides an update on the effects from the outbreak, and withdraws previous financial outlook.

Global farm equipment maker Deere & Company (DE 4.49%) today announced it is withdrawing financial guidance for 2020 that it had put out as recently as February 27, 2020. Its subsidiary, John Deere Capital Corporation is also withdrawing its 2020 outlook. 

Deere, with roots dating back to 1837, has facilities in more than thirty countries and is facing challenges ranging from the health of its employees, supply chain issues, and government mandated shutdowns. 

Green Deere combine harvester in the field

Image source: Getty Images.

Critical infrastructure business

In its update, Deere said that both financial and operational impacts are coming from several factors. It said the severity of the impacts on the company will depend on how long the pandemic lasts, the effects on demand for its equipment and services, supply chain issues, as well as government regulations made to fight the pandemic. It said the business impacts "could be material."

In the U.S., it is a federally designated essential critical infrastructure business, but it is facing COVID-19 related challenges in some locations. As a supplier to farmers and other food producers, Deere will keep its operations running to the extent possible. Its statement said that some facilities are scaling back operations, and others are temporarily halting production due to the pandemic effects. It did not specify which operations are temporarily idled. 

The company said that it was committed to both the health and well-being of its employees, and the needs of its customers. It will provide another update during its May 22, 2020, second quarter earnings announcement and conference call.

 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Deere & Company Stock Quote
Deere & Company
DE
$310.87 (4.49%) $13.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.