Deere & Co. reported net income for the fourth quarter and fiscal 2012 were $687.6 million and $3.065 billion, respectively up from $669.6 million and $2.800 billion in the same period last year. The company noted full-year earnings reached a record on improved net sales and revenues and said demand for U.S. farm equipment paced performance while construction continued recovery.

The company said John Deere Capital (JDCC) net income was $112.6 million for the fourth quarter and $382.7 million for full-year 2012, compared with $93.5 million and $363.6 million for the respective periods in 2011.

The quarter’s improvement was mainly due to growth in the credit portfolio, partially offset by an increased provision for credit losses and higher selling, administrative and general expenses. Full-year 2012 results were higher primarily due to growth in the credit portfolio and a lower provision for credit losses, partially offset by higher selling, administrative and general expenses and narrower financing spreads.

Net receivables and leases financed by JDCC were $26.509 billion and $23.184 billion at October 31, 2012 and 2011, respectively.

In its outlook, Deere said industry sales for agricultural machinery in the U.S. and Canada are forecast to be about flat for 2013 in relation to the prior year’s healthy levels. Caution around the U.S. livestock and dairy sectors is expected to offset continued strength in demand for large equipment such as high-horsepower tractors.

Deere’s worldwide sales of construction and forestry equipment are forecast to increase by about 8% for fiscal 2013 due in part to modest improvement in U.S. economic conditions. Sales in world forestry markets are projected to be about flat for the year as further weakness in European markets offsets stronger demand in the U.S.

To read the Deere & Company news release click here.