Deere & Company said net income was a record $806.8 million for the fourth quarter ended October 31, compared with $687.6 million for the same period last year. For fiscal 2013, net income was $3.537 billion compared with $3.065 billion in 2012.

Deere said net income attributable to John Deere Capital was $132.9 million for the fourth quarter and $468.5 million for full-year 2013, compared with $112.6 million and $382.7 million for the respective periods in 2012.

Results improved for both periods due primarily to growth in the credit portfolio, partially offset by higher selling, administrative and general expenses. Less favorable financing spreads also impacted results for the quarter.

Net receivables and leases financed by JDCC were $30.594 billion and $26.509 billion at October 31, 2013 and 2012, respectively.

In its outlook, Deere said worldwide sales of agriculture and turf equipment are forecast to decrease by about 6% for full-year 2014. The outlook contemplates the sale of a majority interest in the John Deere Landscapes operations. Although commodity prices and farm incomes are expected to remain at healthy levels in 2014 by historical standards, they are forecast to be lower than in 2013. The company believes the decline will have a dampening effect on demand, primarily for large farm equipment.

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 large equipment such as high-horsepower tractors and combines.

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 higher sales in European markets.

Deere said full-year 2014 net income for the financial services operations is expected to be approximately $600 million. The outlook reflects improvement primarily due to continued growth in the credit portfolio, partially offset by a projected increase in the provision for credit losses from the low level in 2013.

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