Deere reports earnings of $285 million for 4Q

Posted December 5, 2016
Net income attributable to Deere & Company was $285.3 million for the 4Q ended October 31, 2016 compared with $351.2 million for the same period of 2015. For fiscal 2016, net income attributable to Deere & Company was $1.524 billion, compared with $1.940 billion in 2015, as the company said in the press release received by Lesprom Network.

Worldwide net sales and revenues decreased 3%, to $6.520 billion, for the 4Q and were down 8%, to $26.644 billion, for the full year. Net sales of the equipment operations were $5.650 billion for the quarter and $23.387 billion for the year, compared with respective totals of $5.932 billion and $25.775 billion in 2015.

"John Deere has completed another successful year in spite of continuing weakness in the global agricultural and construction equipment sectors," said Samuel R. Allen, chairman and CEO. "The company in 2016 had one of its ten-best years in both sales and earnings, a noteworthy achievement in light of the difficult business climate. Deere's performance benefited from the adept execution of its operating plans and disciplined cost management as well as the impact of a broad product portfolio. As a result, the company has remained well-positioned to serve its customers while making continued investments in quality and innovation that we're confident will be supportive of growth in the future."

Construction and forestry sales decreased 5% for the quarter and 18% for the year, largely as a result of lower shipment volumes and higher sales-incentive costs.

The division had an operating loss of $17 million for the quarter and operating profit of $180 million for the year. This compared with operating profit of $64 million and $528 million for the periods in 2015.

Lower results for the quarter were mainly attributable to higher sales-incentive expenses, an impairment charge for international operations and higher production costs.

Full-year results decreased primarily due to lower shipment volumes and higher sales-incentive costs, partially offset by a reduction in both selling, administrative and general expenses and production costs.

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Topics: Finance

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