Deere & Company reported net income from its financial services subsidiary, John Deere Capital, of $81.7 million and $341.6 million for Q4/16 and full year, respectively, was down 33% and 31% from $121.8 million and $498.2 million for the respective periods in 2015.
The company said the decline for the quarter and the full year was primarily due to less-favorable financing spreads, higher losses on lease residual values and a higher provision for credit losses.
Net receivables and leases financed by JDCC were $31.999 billion at October 31, 2016, compared with $32.592 billion last year.
In its outlook, Deere said fiscal-year 2017 net income attributable to its financial services operations is expected to be approximately $480 million. The outlook reflects lower losses on lease residual values, partially offset by less-favorable financing spreads and an increased provision for credit losses.
Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!