Deere Q4 Profit Declines, But Results Beat View; Sees Lower Earnings In FY17

(RTTNews) - Agricultural machinery maker Deere & Co. (DE) on Wednesday reported a 19 percent decline in profit for the fourth quarter from last year as sales were hurt by continued weakness in global markets for farm and construction equipment.

However, results for the quarter beat analysts' estimates. Looking ahead, the company forecast a decline in fiscal 2017 net profit on lower sales.

For the fourth quarter, net income attributable to the company declined percent to $285.3 million or $0.90 per share from $351.2 million or $1.08 per share last year.

On average, 19 analysts polled by Thomson Reuters estimated earnings of $0.40 per share for the quarter. Analysts' estimate typically exclude certain special items.

Worldwide net sales and revenues decreased 3 percent to $6.52 billion from $6.72 billion last year. Net sales of the equipment operations fell 5 percent to $5.65 billion from $5.93 billion a year ago. Analysts expected revenues of $5.38 billion.

Sales included price realization of 3 percent and an unfavorable currency-translation effect of 1 percent.

Equipment net sales in the United States and Canada decreased 14 percent for the quarter. Outside the U.S. and Canada, net sales increased 11 percent.

Looking ahead to fiscal 2017, the company expects attributable net income of about $1.4 billion, while net sales and revenues are projected to decrease about 1 percent. This compares to attributable net income of $1.52 billion in fiscal 2016.

The Street expects earnings of $3.85 per share for the year on revenues of $22.71 billion.

Company equipment sales are projected to decrease about 1 percent for fiscal 2017 and be down about 4 percent for the first quarter.

Deere's fiscal 2017 worldwide sales of agriculture and turf equipment are projected to decrease by about 1 percent, while sales of construction and forestry equipment are forecast to be up about 1 percent.