Deere’s Sales Tumble, Layoffs Announced

An earnings report released by Deere last week shows worldwide net sales and revenue down by 25% compared to the August-to-October quarter last year.

Sales and revenue were down 20% for the full year. Equipment net sales in the United States and Canada decreased 23% for the quarter and 18% for the full year.

Deere projects overall equipment sales will decrease about 7% in its 2016 fiscal year. In dollars, that translates to a projected $1.4 billion net income.

In its agricultural equipment division in the U.S. and Canada, Deere forecasts a decline of 15 to 20% in 2016, most pronounced in its higher-horsepower models.

"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," said Chairman and CEO Sam Allen. "This shows the continuing success of our efforts to establish a more durable business model and a wider range of revenue sources."

After releasing its quarterly report, Deere announced it will lay off 220 employees at its seeding and cylinder facility in Moline and Davenport. The layoffs are indefinite and affect employees in manufacturing. S