Deere reports this morning that its worldwide net sales and revenues decreased 3 percent, to $6.520 billion, for the fourth quarter and were down 8 percent, 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.
Construction and forestry sales decreased 5 percent for the quarter and 18 percent for the year, largely as a result of lower shipment volumes and higher sales-incentive costs.
Deere expects worldwide sales of construction and forestry equipment to be up about 1 percent for 2017, including a positive currency-translation effect of about 1 percent. The company's forecast reflects the impact of generally slow economic growth worldwide. In forestry, global industry sales are expected to be about the same as in 2016 with some moderation in the North American market.
Deere's fiscal 2017 forecast calls for earnings of $1.4 billion on slightly lower sales.