Full-year industry sales in the EU27 are forecast to be down about 5 percent due to weakness in the overall economy and last year's poor harvest in the U.K. In South America, industry sales are projected to be up 15 to 20 percent as a result of strong market conditions in Brazil. Industry sales in the Commonwealth of Independent States are expected to be down slightly from 2012, while Asian sales are projected to be little-changed.
In the U.S. and Canada, industry sales of turf and utility equipment are expected to be flat to down slightly for 2013, reflecting a cool, wet spring in North America and a continuation of cautious consumer sentiment.
Construction & Forestry. Deere's worldwide sales of construction and forestry equipment are forecast to decrease by about 5 percent for 2013. The decline reflects a cautious outlook for U.S. economic growth, cool, wet weather conditions in North America, and flat sales in world forestry markets. In forestry, further weakness in European markets is expected to offset higher U.S. demand.
Financial Services. Full-year 2013 net income attributable to Deere & Company for the financial services operations is expected to be approximately $550 million. The forecast improvement over last year is primarily due to expected growth in the credit portfolio and lower crop insurance claims, partially offset by higher selling, administrative and general expenses.