Sales, revenue, and profits all fell for John Deere as the company reported results for the fourth quarter and its 2016 fiscal year. Deere spokesman Ken Golden says for the year, sales and revenue fell eight percent, and profits dropped 21 per cent. “We’re still in the middle of a global farm recession and on our other big global business, we are having difficult conditions in the construction equipment sector. So when you add up both of those — you have years that are down from previous record years in 2011, 12 and 13,” Golden says.

Despite that, he says it was still one of Deere’s ten best years ever. For this year, the company now predicts sales and revenue will decline just one percent, including a one percent decline for ag equipment. “We’re beginning to see indications that the downturn in large ag is nearing the bottom of cycle,” Golden says, “And so again, we are only predicting a slight decrease in agricultural equipment sales next year.”

Golden says construction equipment sales should increase one percent, thanks to rising housing starts and an improving economy in the U-S.  Worldwide net sales for 2016 totaled 26-point-six billion dollars – down two-point-two (2.2) billion dollars from the previous year. Profits fell to one-point-five (1.5) billion dollars — a drop of 400 million dollars.

(Radio Iowa)