“Our full year forecast for the segment's operating margin is now between 15.5% and 17%, primarily due to tariff impacts.”

In context

“in coffee production are driving increased demand for small and mid-sized tractors. However, record crop production levels are likely to put pressure on commodity prices, capping overall growth in farm profitability for the region, while high interest rates continue to temper demand. Industry sales in Asia are now projected to be flat as the outlook for tractor sales in India improves, supported by favorable growing conditions, steady crop acreage, and increased availability for agricultural credit. Next, our segment forecasts begin on Slide 8. For production and precision Ag, our net sales forecast for the full year remains down between 15% and 20%. The forecast now assumes roughly 1.0 of positive price realization for the full year, offset by 1.5 points of negative currency translation. Our full year forecast for the segment's operating margin is now between 15.5% and 17%, primarily due to tariff impacts. Slide 9 shows our forecast for the small Ag and turf segment. We now expect net sales to be down between 10% and 15%. The guide includes 0.5 point of positive price realization and flat currency translation. Reduction from the prior quarter is primarily due to softening demand in the U.S. turf and compact utility tractor segments, partially offset by improved sales projections for mid-sized tractors in Europe and small tractors in India. The segment's operating margin guide is now between 11.5% and 13.5%, primarily due to tariff impacts and the reduction in projected U.S. turf and compact utility tractor shipment volumes. Shifting over to construction and forestry on Slide 10. Net sales for the quarter declined roughly 23% year-over-year to $2.947 billion due to lower shipment volumes. Pr”