With trade and weather disruptions roiling agriculture markets and a global economy that’s showing signs of a slowdown, it’s perhaps no surprise that tractor-maker Deere & Co. (DE.N) lowered its earnings guidance.

Still, the company’s cuts were deeper than expected, and it announced a review of costs -- never a good sign.

American growers are resisting purchases of expensive new tractors as the U.S.-China trade war stretches into a second year, undermining crop demand and fanning fears of recession. At the same time, record rainfall in the planting season gave way to hot, dry weather that has dimmed the outlook for yields and farm income.

That’s the rural economy. Now the global economy is on shakier ground as well.

While Deere remains positive on general economic conditions, it lowered guidance for construction and forestry and now expects fiscal 2019 economic growth in the U.S. to be in line with 2018, downgrading a previous forecast for acceleration.

Global growth generally is slowing, and alarm bells in bond markets are ringing. The 10-year Treasury yield is dipping below the two-year, which is considered a harbinger of a economic recession in the next 18 months.

While fiscal third-quarter earnings trailed estimates, the miss and “modestly” lower outlook may have been less than many investors feared, according to Jefferies analysts.

Deere shares rose as much as 4.4 per cent on Friday, regaining some of the ground lost this week. On a net basis, quarterly profit slipped to $899 million from $910 million a year ago. Sales fell three per cent.

For fiscal 2019, equipment sales are now projected to rise about 4%, with net income forecast at US$3.2 billion, the Moline, Illinois-based company said. Three months ago, it predicted 5 per cent equipment sales growth and $3.3 billion profit. The average analyst profit estimate was $3.29 billion.

The company announced a review of costs. With production costs in some segments rising, it’s “initiating a series of actions to make the organization more structurally efficient and profitable.”

Those actions are likely to draw interest from investors when executives hold a call to discuss earnings at 10 a.m. New York time.

--With assistance from Karen Lin.