Posted November 30, 2015
Deere's Full-Year Revenues Decrease 20 Percent
With global weakness for farm and construction equipment sales, Deere's sales and earnings dipped significantly compared to last year. However, the company points out, all of its businesses remain profitable. The company's 2016 forecast projects a 7 percent sales decline.You can find the company's full press release here.
"John Deere has completed a successful year in the face of further weakness in the global agricultural sector and a slowdown in construction-equipment markets," said Samuel R. Allen, chairman and chief executive officer. "Sales and earnings for the year were the sixth-highest in company history, a notable achievement in light of the challenging market conditions we experienced. The company's performance benefited from the adept execution of our business plans and disciplined cost management. As a result, Deere remains well-positioned to serve its customers while continuing to make investments in quality and innovation that are designed to drive growth in the future."
Looking specifically at the company's equipment division, construction and forestry sales decreased 32 percent for the quarter and 9 percent for the year. Ag and turf equipment sales fell 25 percent for the quarter and full year.
"John Deere has completed a successful year in the face of further weakness in the global agricultural sector and a slowdown in construction-equipment markets," said Samuel R. Allen, chairman and chief executive officer. "Sales and earnings for the year were the sixth-highest in company history, a notable achievement in light of the challenging market conditions we experienced. The company's performance benefited from the adept execution of our business plans and disciplined cost management. As a result, Deere remains well-positioned to serve its customers while continuing to make investments in quality and innovation that are designed to drive growth in the future."
Looking specifically at the company's equipment division, construction and forestry sales decreased 32 percent for the quarter and 9 percent for the year. Ag and turf equipment sales fell 25 percent for the quarter and full year.
The company says construction and forestry equipment sales will dip another 5 percent next year, in part due to currency fluctuations (which also affected 2015 results), declining due to weak conditions in the North American energy sector. In forestry, global sales are expected to be down 5 to 10 percent from last year's strong levels, primarily as a result of lower sales in the U.S. and Canada.
Worldwide agriculture and turf equipment are forecast to decrease by about 8 percent for fiscal-year 2016, including a negative currency-translation effect of about 2 percent. Industry sales for agricultural equipment in the U.S. and Canada are forecast to be down 15 to 20 percent for 2016.
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