Net income attributable to Deere & Company was $351.2 million for the fourth quarter ended October 31, compared with $649.2 million for the same period of 2014. For fiscal 2015, net income attributable to Deere & Company was $1.940 billion compared with $3.162 billion last year.

Worldwide net sales and revenues decreased 25%, to $6.715 billion, for the fourth quarter and were down 20%, to $28.863 billion, for the full year. Net sales of the equipment operations were $5.932 billion for the quarter and $25.775 billion for the year, compared with $8.043 billion and $32.961 billion for the same periods in 2014.

Financial services reported net income attributable to Deere & Company of $153.0 million for the quarter and $632.9 million for the year compared with $172.2 million and $624.5 million in 2014. Lower results for the quarter were primarily due to the unfavorable effects of foreign-currency exchange translation, and higher losses on residual values primarily for construction-equipment operating leases, partially offset by lower selling, administrative and general expenses.

Results for the year improved due to growth in the average credit portfolio, the previously announced crop insurance sale and higher crop insurance margins experienced prior to divestiture, and lower selling, administrative and general expenses. These factors were partially offset by the unfavorable effects of foreign-currency exchange translation, less-favorable financing spreads, and higher losses on residual values primarily for construction-equipment operating leases. Full-year results in 2014 also benefited from a more favorable effective tax rate.

Market Conditions & Outlook

• Agriculture & Turf. Deere’s worldwide sales of agriculture and turf equipment are forecast to decrease by about 8% for fiscal-year 2016, including a negative currency-translation effect of about 2%. Industry sales for agricultural equipment in the U.S. and Canada are forecast to be down 15 to 20% for 2016. The decline, which reflects the impact of low commodity prices and stagnant farm incomes, is expected to be most pronounced in the sale of higher-horsepower models.
• Full-year 2016 industry sales in the EU28 are forecast to be flat to down 5%, with the decline attributable to low commodity prices and farm incomes, including further pressure on the dairy sector. In South America, industry sales of tractors and combines are projected to be down 10 to 15% mainly as a result of economic concerns in Brazil and uncertainty about government-sponsored financing. Asian sales are projected to be flat to down slightly, due in part to weakness in China.
• Industry sales of turf and utility equipment in the U.S. and Canada are expected to be flat to up 5% for 2016, benefiting from general economic growth.
• Deere’s worldwide sales of construction and forestry equipment are forecast to be down about 5% for 2016, including a negative currency-translation effect of about 1%.
• The forecast decline in sales reflects the impact of weak conditions in the North American energy sector, especially in Canada, as well as lower sales outside the U.S. and Canada. In forestry, global sales are expected to be down 5% to 10% from last year’s strong levels, primarily as a result of lower sales in the U.S. and Canada.