“We expect further reductions to occur during the fourth quarter, which is in line with historical trends.”

In context

“n this year to drive inventories lower. And while this has caused some short-term pain, it is the right plan to manage the cycle and better sets us up for whichever way the market --. And so with that, I would start by highlighting our situation in Brazil. This market has remained challenged, as you noted earlier. However, we significantly underproduce the market and despite the industry demand declining more than anticipated, we still seen inventory decline so far this year and fully anticipate that this trend will accelerate throughout the remainder. Relative to the North American large Ag segment, we are beginning to see the impacts of our proactive inventory management decisions with absolute units of new inventory declining double digits over the past quarter, outpacing the industry. We expect further reductions to occur during the fourth quarter, which is in line with historical trends. And while we expect our inventory to sales ratios, which remain below industry levels to end the year at roughly the same level as last year, this reflects a material decrease in the absolute number of industry. In fact, to put this into perspective, on an absolute basis, we are forecasting to end the year with less than 1 row crop tractor per dealer. Josh Beal: If I might jump in and quickly add some color to Luke's comment on rest of the year reductions in North America. The underproduction of large tractors we highlighted last quarter will be a significant driver of the implied margin decline in our fourth quarter. For example, our guide contemplates planned shutdowns of our 8 Series tractor production line in Waterloo, Iowa for about 50% of the total production days in the quarter, wh”