By Gerson Freitas Jr.

Deere Lowers Bottom of Outlook Range on Tariff Uncertainty. Bloomberg

(Bloomberg) -- Deere & Co. trimmed the lower end of its profit outlook range even as quarterly results beat estimates, as the company weathers disruptions from global trade upheaval.

Most Read from Bloomberg

• As Coastline Erodes, One California City Considers ‘Retreat Now’

• How a Highway Became San Francisco’s Newest Park

• Power-Hungry Data Centers Are Warming Homes in the Nordics

Net income for the current fiscal year will be between $4.75 billion and $5.5 billion, the world’s largest maker of farm machinery said in a statement. In February, the company said profits would be as low as $5 billion.

The outlook range was widened in response to a “dynamic environment,” the company said, citing “heightened uncertainty.”

Tractors sales have been trending lower since a 2023 record as falling crop prices eroded farm income, leaving growers with less to spend on new equipment and causing inventories of machines to swell. President Donald Trump’s tariffs have also weighed on sales and added to costs.

Still, Deere’s profits for the fiscal second quarter dropped less than anticipated. Net income was $6.64 a share in the three months ended in April, down 22% from a year earlier. That beat even the highest of analyst estimates compiled by Bloomberg. Net sales slumped 18%, also less than projected.

The company’s shares rose 1.6% as of 7:15 a.m. before regular trading hours in New York. The stock has gained 18% so far this year as investors look for an upturn in the farm economy. Most observers expect the market to bottom out this year, with a rebound seen for 2026.

Rival tractor makers CNH Industrial NV and AGCO Corp. earlier this month reported lower first-quarter sales, and warned of the potential of reduced demand for farmers.

--With assistance from Michael Hirtzer.

(Updates with share move in sixth paragraph.)

Most Read from Bloomberg Businessweek

• Cartoon Network’s Last Gasp

• DeepSeek’s ‘Tech Madman’ Founder Is Threatening US Dominance in AI Race

• Why Obesity Drugs Are Getting Cheaper — and Also More Expensive

• As Nuclear Power Makes a Comeback, South Korea Emerges a Winner