Deere & Company‘s Q4 saw a worldwide net sales and revenue decrease of 2 percent and a 9 percent decrease for the full year, ending Nov. 3rd.
Net sales and revenues for the company’s construction and forestry segment decreased 20% year-over-year, going from $11.22 billion in 2019 to $8.97 billion this fiscal year. The segment decreased 16% during Q4 compared with the same period in 2019, going from $2.94 billion to $2.46 billion.
In contrast, agriculture and turf operations showed an 8% increase in net sales and revenues during the quarter, going from $5.75 billion in 2019 to $6.19 billion this year. For the entire year, however, this segment decreased 6%.
Deere is optimistic about the year ahead, citing improving conditions in the farm economy and stabilization in construction and forestry markets. Deere expects net global sales in agriculture and turf to increase 10% to 15% during its next fiscal year, and construction and forestry to increase 5% to 10%. Global forestry sales will be flat to up 5%.
The company says its global construction and forestry outlook reflects the continued strength in compact construction equipment due to residential building activity, expected growth in the roadbuilding sector and some recovery from the pandemic.
North American construction equipment sales, however, are expected to be down about 5%, with the exception of compact equipment, which is expected to be up about 5%.