John Deere Withdraws 2020 Financial Outlook
Heavy-equipment producer Deere withdrew its 2020 financial guidance in response to the coronavirus outbreak, which has crippled large parts of the world economy.
The Moline, Ill., company said it would provide further updates during its second-quarter-earnings report on May 22.
Deere is a federally designated essential critical infrastructure business, meaning that it will have to continue its domestic operations. But those operations have been hampered by social distancing and new working arrangements.
“Above all else, the company is committed to the safety and well-being of its employees and is doing everything possible to ensure that its facilities follow the highest standards of safety and hygiene,” Deere said in an 8-K filing with the Securities and Exchange Commission.
“At the same time, the company and its employees remain committed to meeting the needs of customers and ensuring they receive equipment, parts and services in a timely manner.”
John Deere shares at last check were off 6.7% at $111.63.
Deere is just the latest company to preannounce that the coronavirus is clouding its financial projections for the year.
Federal, state and local governments have been urging constituents to stay inside and stay six feet away from each other.
Along with store reducing hours and closing and restaurants told they can serve only takeout and delivery, the coronavirus is wreaking havoc on the American economy.
Some estimates now say that U.S. second-quarter gross domestic product will fall 10% in the second quarter.