John Deere Capital Corporation (JDCC) has reported net income of $99.9m (90.6m) for the first quarter ended January 31st2016, a fall from the $133.6m reported in the same period last year.
According to the company lower results for the quarter were primarily due to less favourable financing spreads, higher losses on residual values primarily for construction-equipment operating leases and a higher provision for credit losses.
Net receivables and leases financed by JDCC were $31.5bn and $31.51bn at January 31, 2016 and 2015, respectively.
Deere & Company
Net income attributable to (parent company?) Deere & Company was $254.4m in Q1, compared with $386.8m for the same period of 2015. Worldwide net sales and revenues for the first quarter decreased 13%, to $5.53bn, compared with $6.38bn last year, while net sales of the equipment operations were $4.77bn for the quarter compared with $5.61bn a year ago.
The company attributed the results’ decline on the weakness in global markets for farm and construction equipment.
"All businesses remain profitable, helped by sound execution and effective cost management," the company wrote.