Deere & Company’s equipment sales are projected to decrease 1 percent for fiscal year 2017 and decrease about 4 percent for the first quarter, compared with the same periods in 2016. Net income attributable to Deere & Company is anticipated to be about $1.4 billion.
The company’s worldwide sales of agriculture and turf equipment are forecast to decrease by about 1 percent for fiscal year 2017.
John Deere construction and forestry equipment sales are forecast to increase about 1 percent for 2017. The forecast reflects the impact of generally slow economic growth worldwide. In forestry, global industry sales are expected to be about the same as in 2016 with some moderation in the North American market.
Fiscal year 2017 net income attributable to Deere & Company financial services operations is expected to be approximately $480 million. The outlook reflects lower losses on lease residual values, partially offset by less favorable financing spreads and an increased provision for credit losses.
Worldwide results for 2016 showed Deere & Company net income dropped 21% compared to 2015 to $1.524 billion, or $4.81 per share. Net sales and revenues decreased 8% to $26.644 billion. Sales of worldwide equipment operations declined 9% to $23.387 billion. Equipment sales in the United States and Canada decreased 13% for 2016. Outside the U.S. and Canada, net sales decreased 3 percent for the year, with an unfavorable currency-translation effect of 4 percent for 2016.
Net income of 2016 John Deere equipment operations dropped 19% from 2015 to $1.058 billion. Equipment-operations operating profit dropped 14% to $1.88 billion in 2016.
Deere’s sales in the construction and forestry segments fell 18% to $4.9 billion. Sales in the ag and turf segments slipped nearly 7% to $18.487 billion.
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