“For Production and Precision Ag, net sales forecast is unchanged. And remains down between 5% and 10% for the full year.”

In context

“%. While elevated interest rates continue to affect purchasing decisions, customer profitability and replacement activity are relatively stable. Although the arable sector remains a bit muted, favorable dairy margins continue to support the broader industry outlook. Moving to South America. Industry sales of tractors and combines are now expected to decline about 15%. While production and yield performance remained strong alongside improving crop prices, elevated interest rates, higher input costs and a stronger Brazilian real pressuring customer profitability, and reducing equipment demand in the near term. Industry sales in Asia are now projected to be roughly flat year over year. Mainly driven by modest improvements within the India market. Next, our segment forecast begins on Slide 7. For Production and Precision Ag, net sales forecast is unchanged. And remains down between 5% and 10% for the full year. This forecast now reflects roughly 1 point of positive price realization for the full year, as well as just under 3 points of favorable currency translation. Our full year forecast for the segment's operating margin is also unchanged. And remains between 11% and 13%. Slide 8 shows our forecast for the Small Ag and Turf segment. We continue to expect net sales to be up approximately 15% for the full year. This guide includes 1.5 points of positive price realization, as well as roughly 1 point of favorable currency translation. The segment's operating margin guide remains between 13.5% and 15%. Shifting over to Construction and Forestry on Slide 9. Net sales for the quarter increased by 29% year-over-year, to $3.790 billion as a result of higher shipment volumes and favorable currency trans”