Deere Q4 Profit Down 46% Amid Lower Demand For Farm Equipment

(RTTNews) - Agricultural machinery maker Deere & Co. (DE) said its fourth-quarter profit declined 46 percent from the previous year, as sales dropped 25 percent hurt by weakness in global markets for farm and construction equipment. Further, the company forecast a lower profit for fiscal 2016 compared to the prior year.

Fourth-quarter net income attributable to the company fell to $351.2 million or $1.08 per share from $649.2 million or $1.83 per share for the same period last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $0.75 per share for the quarter. Analysts' estimates typically exclude special items.

Worldwide net sales and revenues decreased 25 percent to $6.72 billion from $8.97 billion in the previous year. Net sales of the worldwide equipment operations declined 26 percent from last year to $5.93 billion from $8.04 billion. Analysts expected revenues of $6.13 billion.

Sales included price realization of 1 percent for the quarter and an unfavorable currency-translation effect of 5 percent.

Looking ahead to fiscal 2016, net income attributable to Deere & Company is anticipated to be about $1.4 billion, lower than $1.94 billion in fiscal 2015. Company equipment sales are projected to decrease about 7 percent for fiscal 2015 and to be down about 11 percent for the first quarter.

The Street expects the company to earn $4.08 per share for the year on revenues of $24.35 billion.

"Although our forecast calls for lower results in the year ahead, the outlook represents a level of performance that is considerably better than we have experienced in previous downturns," Chairman and Chief Executive Officer Samuel Allen said.