“For the full year, the reduction in both our net sales and operating profit guides for large ag are primarily driven by currency changes as we extend the impact of the stronger US dollar to the rest of our projections, including our unhedged currency exposure in the latter quarters of the year.”

In context

“lation. Within our ag and turf divisions, we saw the timing of certain product deliveries get pushed out into the second and third quarters as we work to optimize schedules for the full year. Similarly, in road building, a shift to more normal seasonality in that industry pushed some shipments into future quarters. As a result, we expect to see these sales occur across the remainder of the year for all three divisions. Regarding currency, over the quarter, we saw mid-single-digit strengthening of the dollar against nearly all our foreign currency exposure, which lowered our top-line results, particularly in production and precision ag, due to the translation impact on non-US dollar sales. The currency impact on operating profit was relatively minimal in the quarter due to currency hedges. For the full year, the reduction in both our net sales and operating profit guides for large ag are primarily driven by currency changes as we extend the impact of the stronger US dollar to the rest of our projections, including our unhedged currency exposure in the latter quarters of the year. Shifting to cost management, we had a relatively strong quarter. In both of our ag and turf segments, we saw favorable production costs primarily due to reduced material costs and muted overhead headwinds. Additionally, lower SG&A expenses this quarter reflect our focus and commitment to operational efficiency throughout the business. Turning to the full-year guide, our market demand outlook remains relatively unchanged this quarter. Outside of the FX impacts that moved our PPA guide slightly lower, this quarter was really a story of continued production and inventory management. One last item of note, we did benefit from a favorable tax rate this quarter, resulting from two non-repeating discrete items totaling $163 million. Therefore, when netted against the negative currency impacts an”