Equipment Type

Deere Q4 Earnings Set Record

Net income attributable to Deere & Company was $687.6 million for the fourth quarter ended October 31, compared with $669.6 million for the same period last year.

November 21, 2012

Net income attributable to Deere & Company was $687.6 million for the fourth quarter ended October 31, compared with $669.6 million for the same period last year.

For fiscal 2012, net income attributable to Deere & Company was $3.065 billion, compared with $2.800 billion in 2011.

Worldwide net sales and revenues rose 14 percent, to $9.792 billion, for the fourth quarter and increased 13 percent to $36.157 billion for the full year. Net sales of the equipment operations were $9.047 billion for the quarter and $33.501 billion for the year, compared with $7.903 billion and $29.466 billion for the same periods in 2011.

During the year, Deere continued with the record introduction of new products, while opening or moving ahead with new factories in China, India, and Brazil. In the U.S., the company announced capacity expansions for tractors, sprayers, and cylinders.

Construction and forestry sales increased 7 percent for the quarter and 19 percent for the year mainly due to higher shipment volumes and price realization. Operating profit was $120 million for the quarter and $476 million for the year, compared with $87 million and $392 million, respectively, in 2011. Results increased for both periods primarily due to the impact of price realization and higher shipment volumes. These factors were partially offset by increased production costs and higher selling, administrative and general expenses. In addition, higher raw-material costs and increased research and development expenses affected the year.

Deere's worldwide sales of construction and forestry equipment are forecast to increase by about 8 percent for fiscal 2013 due in part to modest improvement in U.S. economic conditions. Sales in world forestry markets are projected to be about flat for the year as further weakness in European markets offsets stronger demand in the U.S.

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