Net sales of the equipment operations grew 17.6% to $8.34 billion. The company benefited from a further improvement in market conditions and a favorable customer response to its lineup of advanced products.
Equipment net sales in the United States and Canada increased by 21% for the quarter. Outside of the U.S. and Canada, net sales rose 13% as currency translation had a negative effect of 7% on the sales.
Looking ahead into the fiscal year 2019, the company expects revenue growth of about 7% and net income attributable to Deere & Company of about $3.6 billion. Company equipment sales are projected to increase by about 7% for fiscal 2019 compared with 2018. Foreign-currency rates are expected to have an unfavorable translation effect on equipment sales of about 2% for the year.
For the fourth quarter, sales from Agriculture & Turf rose 3% as higher shipment volumes and price realization offset the unfavorable impact of currency translation. Construction and forestry sales climbed 65% on higher shipment volumes, lower warranty-related claims, and price realization.
For 2019, sales of agriculture and turf equipment are forecast to be up about 3%, including a negative currency-translation effect of 2%. Sales of construction and forestry equipment are anticipated to be up about 15% for 2019. Net income attributable to Deere & Company for the financial services operations is projected to be about $630 million.
Shares of Deere ended Tuesday’s regular session down 2.79% at $138.52 on the NYSE. The stock has fallen over 11% in the year so far while it has risen over 1% in the past year.