Deere had one of its 10best years despite continuing softness in worldwide construction and agriculture

Fiscal 2016 One of “Ten Best” for Deere, Despite Small Declines

Nov. 25, 2016

Deere & Co.’s worldwide net sales and revenues declined 3 percent to $6.43 billion for the fiscal fourth quarter, and slid 8 percent to $26.6 billion for the full fiscal year.

Michael Roth

Deere & Co.’s worldwide net sales and revenues declined 3 percent to $6.43 billion for the fiscal fourth quarter, and slid 8 percent to $26.6 billion for the full fiscal year. Net income attributable to Deere was $285.3 million compared with $351.2 million for the same period a year ago.

Net sales of the equipment operations were $5.65 billion for the quarter and $23.4 billion for the year, compared with $5.93 billion and $25.78 billion a year ago.

“John Deere has completed another successful year in spite of continuing weakness in the global agricultural and construction equipment sectors,” said Samuel Allen, chairman and CEO. “The company in 2016 had one of its 10-best years in both sales and earnings, a noteworthy achievement in light of the difficult business climate. Deere’s performance benefitted from the adept execution of its operating plans and disciplined cost management as well as the impact of a broad product portfolio. As a result, the company has remained well-positioned to serve its customers while making continued investments in quality and innovation that we’re confident will be supportive of growth in the future.”

Net sales of the worldwide equipment operations declined 5 percent for the quarter and 2 percent for the fully year. Sales included a favorable currency translation effect of 1 percent for the quarter and an unfavorable effect of 2 percent for the full year.

Equipment net sales in the United States and Canada dropped 14 percent for the quarter and 13 percent for the full year. Outside the U.S. and Canada, net sales jumped 11 percent for the quarter, but slid 3 percent for the full year.

Net income for Deere’s equipment operations was $185 million for the fourth quarter and $1.058 billion for the year, compared with $200 million and $1.308 billion for the respective periods in 2015.

Deere expects company equipment sales to decrease about 1 percent in fiscal 2017 and about 4 percent for the first quarter compared with the corresponding periods in fiscal 2016.

The construction and forestry sales dove 5 percent in the quarter compared to fiscal Q415, and 18 percent for the year, primarily because of lower shipment volumes and higher sales-incentive costs. Deere expects worldwide sales of construction and forestry sales to increase about 1 percent in fiscal 2017.