Deere blames economy for declining sales

The manufacturer of John Deere (DE) equipment on Friday warned that an economic slowdown is taking a bite out of its sales and profit.

Deere & Co.'s net income in the fiscal first quarter ended Jan. 31 fell 34% to $254 million and its net revenue fell 13% to $5.5 billion.

"John Deere's first-quarter results reflected the continuing impact of the downturn in the global farm economy as well as weakness in construction equipment markets," CEO Samuel Allen said in a statement. "At the same time, all of Deere's businesses remained solidly profitable, benefiting from the sound execution of our business plans and the success of actions to develop a more responsive cost structure."

The company said its 2016 fiscal year sales would fall by 10% and that its profit would fall by $1.3 billion.

A deteriorating market in the U.S. and Canada is taking a toll. Equipment sales there fell 18% for the quarter, compared to the same period a year earlier.

In other areas of the world, sales fell 9%, including an 11% downward effect attributable to negative foreign currency translation effects.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.