Deere & Company announced record first-quarter earnings of $681 million versus $649.7 million for the same period last year. Deere said worldwide net sales and revenue was $7.654 billion, up from $7.421 billion last year.

The company reported financial services net income of $142.2 million for the quarter compared with $132.9 million last year. The improvement was primarily related to growth in the credit portfolio and a more favorable effective tax rate.

In its outlook for financial services, Deere said full-year 2014 net income is expected to be approximately $600 million. The outlook reflects improvement primarily due to expected growth in the credit portfolio and a more favorable tax rate. These factors are projected to be partially offset by an increase in the provision for credit losses from the low level in 2013, less favorable financing spreads, and higher selling, general and administrative expenses.

In its U.S. and Canada market outlook and forecast for agriculture & turf equipment, Deere said sales are forecast to decrease by about 6% for fiscal 2014. Although farm incomes are expected to remain at healthy levels in 2014, they are forecast to be lower than in the previous year. In Deere’s view, the decline will have a dampening effect on demand, especially for larger models of equipment. Partly as a result of these factors, industry sales for agricultural machinery in the U.S. and Canada are forecast to be down 5% to 10% for the year, with the decline mainly reflecting lower sales of high-horsepower tractors and combines.

With regard to industry sales of turf and utility equipment in the U.S. and Canada, Deere said they are expected to be up about 5%for 2014 as a result of improved market conditions.

Deere’s worldwide sales of construction and forestry equipment are forecast to increase by about 10% for 2014. The gain reflects further economic recovery and higher housing starts in the U.S. as well as sales increases outside the U.S. and Canada. Global forestry sales are expected to be up for the year due to general economic growth and improved sales in European markets.

To read the Deere & Company news release click here.