On Thursday morning, John Deere reported fourth-quarter earnings and revenue that beat expectations.
In the quarter, the agricultural and construction equipment manufacturer reported earnings per share of $1.83 on revenue of $8.9 billion, topping estimates for $1.57 of earnings on $7.75 billion of sales.
But when compared with the prior year, the company's earnings and revenue both declined, and Deere doesn't expected that trend to abate in 2015.
Deere expects sales decline in its equipment segment, as well as its agriculture and turf segments in 2015, though the company is looking for a modest increase in sales in its construction and forestry segment.
The company, which has its finger on the pulse of nearly the entire agricultural and industrial economy, released a slide deck to accompany its fourth-quarter earnings conference call, and its outlook for the global economy isn't great.
Deere expects commodity prices to continue falling next year, a trend that has been in place for most of 2014, and the company sees China and Europe continuing to grow at just a modest pace.
And the company's most negative view is on Brazil, where Deere expects the crop value of agricultural production to decline 15% next year.The European economy is still just so-so.
Chinese economic growth is also slowing, with lower commodity prices affecting the agricultural economy.
The outlook for Brazil is particularly grim.
Deere slashed its expectations for the price of all US farm commodities.
Not a pretty chart.
But 2015 should have a better corn crop, with fewer harvested acres and a larger yield.
Corn, however, is the only commodity that is expected to see revenue increase in 2015.
You've seen John Deere's view on the economy ...
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