“Results are expected to be higher year-over-year, primarily due to a lower provision for credit losses partially offset by less favorable financing spreads.”

In context

“% to 15%. Our net sales guidance for the year includes about one point of positive price realization and flat currency translation. The segment's operating margin is projected to be between 11.5% and 12.5%. Switching to our financial services operations on slide thirteen, worldwide financial services net income attributable to Deere and Company was $173 million for the fourth quarter. The year-over-year decline was mainly due to a higher provision for credit losses partially offset by income earned on a higher average portfolio balance. The reduction in derivative valuation adjustment and lower SING expenses. Results were also negatively impacted by the increased valuation allowance on assets held for sale of Banco John Deere. For fiscal year 2025, the net income forecast is $750 million. Results are expected to be higher year-over-year, primarily due to a lower provision for credit losses partially offset by less favorable financing spreads. Additionally, 2024 results were affected by the valuation allowance on assets held for sale of Banco John Deere. Slide fourteen concludes our guidance for net income, effective tax rate, and operating cash flow. For fiscal year 2025, our full-year net income forecast is expected to be in the range of $5 billion to $5.5 billion, highlighting structural improvements over previous cycles. Next, our guidance incorporates an effective tax rate between 23% and 25%. Lastly, cash flow from equipment operations is projected to be in the range of $4.5 billion to $5.5 billion. It's important to emphasize that our implied guidance of around $19 in earnings per share is at sub-trough levels with expected sales for fiscal 2025 below 80% of mid-cycle, underscoring our commitment to operational excellenc”