John Deere revenues fell by almost 25% for the fourth quarter prompting warnings by the company that 2016 will show further dips

Net sales of the worldwide equipment operations declined 26% for the quarter and 22% for the full year compared with the same periods in 2014. Sales also included an unfavourable currency translation effect of 5% for the full year. Equipment sales in the United States and Canada decreased 23% for the quarter and 18% for the full year. Outside the U.S. and Canada, sales fell 31% for the quarter and were down 28% for the year, with unfavourable currency translation effects of 10% for the year..

Commenting CEO Samuel Allen said, “John Deere has completed a successful year in the face of further weakness in the global agricultural sector and a slowdown in construction-equipment markets. Sales and earnings for the year were the sixth-highest in company history, a notable achievement in light of the challenging market conditions we experienced”

Deere is projecting equipment sales to decrease by about 7% for 2016 and to be down about 11% for the first quarter compared with 2015.

“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,” Allen said. “John Deere remains in a strong position to carry out its growth plans and attract new customers throughout the world,” he said.

John Deere shares rose by 5% in pre-market trading following the earnings report.