“For the segment's operating margin, our full year forecast is now between 20.5% and 21.5% due to demand softening and proactive inventory management.”

In context

“. In South America, industry sales of tractors and combines are now expected to decline between 15% to 20%. Brazil remains the largest affected market with additional pressure stemming from strong global yields, driving down commodity prices. Both soy and corn margin expectations softened over the quarter. Conditions are further impacted by elevated interest rates and an expected strong recovery in Argentina production levels following last year's drought. Industry sales in Asia continue to be forecasted down moderately. Next, our segment forecast begin on Slide 7. For Production and Precision Ag, net sales are forecasted to be down between 20% and 25% for the full year. The forecast assumes roughly 1.5% of positive price realization for the full year and minimal currency impact. For the segment's operating margin, our full year forecast is now between 20.5% and 21.5% due to demand softening and proactive inventory management. Slide 8 shows our forecast for the Small Ag and Turf segment. We now expect net sales to be down between 20% and 25%. The guide includes 1.5 points of positive price realization and flat currency translation. The segment's operating margin is now between 13.5% and 14.5%, in line with slowing net sales. Shifting to Construction and Forestry on Slide 9. Net sales for the quarter were down 7% year-over-year at $3.844 billion due to lower shipment volumes. Price realization was positive by roughly 0.5 point while currency translation was flat. Operating profit of $668 million was down year-over-year, resulting in a 17.4% operating margin due primarily to lower shipment volumes and higher R&D and SA&G expenses. Slide 10 gives our 2024 Construction and Forestry, industry outlook. Indus”