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John Deere plans $40M spend on expedited freight for supply continuity amid coronavirus

February 24, 2020 / Emma Cosgrove
SHARESHARESHARE

John Deere predicts it will spend $40 million on expedited freight to ensure no disruption in supply of components manufactured in China related to COVID-19, said CFO Ryan Campbell on the company's Friday earnings call. Apart from the global shakeup of COVID-19, an illness in the coronavirus family, John Deere executives said the U.S. agricultural economy shows signs of stabilization in light of the U.S.-Mexico-Canada agreement passage and the phase one trade deal with China. Still, Deere does not expect farmers to rush out and buy enough new equipment to bring significant order growth in 2020. "Continued positive sentiment will be dependent, in part, upon a pickup in U.S. exports of agricultural goods to China," said Campbell.