Skip to content

DE · DEERE & CO

27 filings

10-K

DE 10-K Annual Reports

DEERE & CO - 27 annual reports

Filing record · 2016–202610-K1110-Q348-K164

2025
DEERE & CO Annual Report, Year Ended Nov 2, 2025
Deere & Company's fiscal 2025 results (year ended November 2, 2025, a 53-week year) reflect a sharp downturn in its equipment markets. Consolidated net sales and revenues fell 12% to $45.7 billion, and net income attributable to Deere declined to $5.0 billion from $7.1 billion, with diluted EPS of $18.50 versus $25.62. The decline was driven by lower sales volumes in large agriculture in North America, weaker construction and forestry demand, roughly $600 million of direct incremental tariff costs, and higher allowances for credit losses in agriculture and turf receivables. Equipment operations operating margins compressed across all three segments, with Production & Precision Agriculture falling to 15.4% from 21.7%, Small Agriculture & Turf to 11.8%, and Construction & Forestry to 9.0%. Financial Services net income rose 28% to $890 million, helped by special items, lower SG&A, and better financing spreads, although the deconsolidation of Banco John Deere in Brazil reduced the receivables base. Liquidity remains strong: cash and marketable securities total about $9.7 billion, the company generated $7.5 billion in operating cash flow, and it returned $2.8 billion less to shareholders than in 2024 by cutting buybacks. Management forecasts lower equipment operations operating cash flow in 2026, a further decline in large ag in North America, and modest improvement in small ag and turf and construction. Pending legal risk includes an FTC and state attorneys general antitrust suit over right-to-repair, for which management is in preliminary settlement discussions and has not estimated an impact. For investors, the central questions are how long the agricultural cycle persists, whether tariff relief from the Supreme Court IEEPA case materializes, and whether the right-to-repair litigation leads to operating or financial constraints. The company maintains A-range credit ratings from all three agencies with stable outlooks, and it declared a quarterly dividend of $1.62 per share for early 2026.
Dec 18, 2025
2024
DEERE & CO Annual Report, Year Ended Oct 27, 2024
Deere & Company's fiscal 2024 10-K (year ended October 27, 2024) shows a clear cyclical downturn. Consolidated net sales and revenues fell 16% to $51.7 billion from $61.3 billion, and net income attributable to Deere fell 30% to $7.1 billion from $10.2 billion, with diluted EPS of $25.62 versus $34.63. Equipment operations net sales dropped 19% to $44.8 billion, driven by lower shipment volumes in production and precision agriculture (PPA, down 22%), small agriculture and turf (SAT, down 22%), and construction and forestry (CF, down 12%). Operating margins compressed across segments: PPA fell to 21.7% from 26.1%, SAT to 14.8% from 17.7%, and CF to 15.5% from 18.2%. Management cited weak farm fundamentals, high interest rates, rising grain stocks, and elevated dealer inventories. Backlogs fell sharply (PPA $5.2B vs. $7.9B; CF $2.2B vs. $6.4B), and management guides to lower agriculture, turf, and construction equipment sales in 2025. The financial services segment is a counterweight. Revenue rose 23% to $6.5 billion, and segment net income rose 12% to $696 million, though management noted that results excluding a 2023 accounting correction would have declined on higher credit-loss provisions and less favorable financing spreads. Consolidated interest expense rose 36% to $3.3 billion as borrowing costs climbed, and provisions for credit losses increased. Financing receivables rose to $53.3 billion, and past-due and non-performing ratios worsened. Operating cash flow was $9.2 billion, supported by inventory reductions and lower receivables, while the company returned less cash to shareholders (repurchases of $4.0 billion versus $7.2 billion in 2023). The company plans a 2025 capital expenditure budget of $1.6 billion and expects lower operating cash flow in 2025. For investors, the key points are the sharp earnings reset tied to the agricultural cycle, the rising financing-cost and credit-quality pressures in John Deere Financial, and the pending legal and regulatory exposure from the FTC investigation and the multidistrict class action over repair restrictions. Management also disclosed a joint venture with Bradesco for its Brazilian financing unit (Banco John Deere) and a $10.0 million FCPA settlement tied to Wirtgen Thailand. Ratings remain strong (A1/A/A+), and the company continues to pay its quarterly dividend, declaring $5.88 per share for the year.
Dec 12, 2024
2023
DEERE & CO Annual Report, Year Ended Oct 29, 2023
Deere & Company's fiscal 2023 10-K (fiscal year ended October 29, 2023) shows a year of strong performance driven by price realization and robust demand for farm and construction equipment. Consolidated net sales and revenues rose to $61.3 billion from $52.6 billion, and net income attributable to Deere reached $10.2 billion, or $34.63 diluted EPS, versus $23.28 in 2022. Equipment operations net sales grew 16% to $55.6 billion, with price realization of 12% across the enterprise and the production and precision agriculture segment posting a 26.1% operating margin. Deere's cost of sales ratio improved to 67.9% from 73.7%, showing that price increases outpaced cost inflation as supply chains normalized. The filing also points to a weaker outlook for 2024. Management expects demand to decline, production volumes to fall back toward more normal levels, and large agricultural equipment sales to decline in North America, Europe, and South America. Backlogs fell year over year across all segments (PPA from $9.7 billion to $7.9 billion, SAT from $4.6 billion to $3.3 billion, CF from $8.2 billion to $6.4 billion). Rising interest rates compressed financial services spreads by about $170 million after tax, and management expects further spread compression in 2024 if rates keep rising. Interest expense more than doubled to $2.45 billion, reflecting higher borrowing costs and a larger receivables portfolio. Balance sheet and capital allocation are important considerations for investors. Operating cash flow was $8.6 billion, while investing outflows of $8.7 billion were driven mainly by growth in financing receivables. Deere returned significantly more cash to shareholders, repurchasing $7.2 billion of stock and paying $1.4 billion in dividends, and $13.0 billion remains under the $18.0 billion buyback authorization. Financial services now carries roughly $70.7 billion in assets against $104.1 billion consolidated, and the company's credit ratings remain strong at A2 (Moody's, positive outlook), A (S&P), and A+ (Fitch). The auditor, Deloitte & Touche LLP, issued an unqualified opinion on both the financial statements and internal control over financial reporting. Pending legal risks include a class action over right-to-repair and an FTC investigation, both of which management says cannot yet be predicted.
Dec 15, 2023
2022
DEERE & CO Annual Report, Year Ended Oct 30, 2022
Deere & Company's fiscal 2022 10-K (fiscal year ended October 30, 2022) shows a year of strong top-line and earnings growth despite supply chain, inflation, and Russia/Ukraine headwinds. Worldwide net sales and revenues rose 19% to $52.577 billion, and net income attributable to the company reached $7.131 billion, or $23.28 per diluted share, up from $5.963 billion ($18.99) in 2021. Net sales rose 21% to $47.917 billion on higher shipment volumes and price realization. Results were helped by a $326 million non-cash gain from remeasuring the Deere-Hitachi excavator joint venture stake, and were held back by roughly $255 million of pretax Russia/Ukraine charges, a $90 million UAW ratification bonus, higher production costs, and a cost of sales ratio that rose to 73.7% from 73.3%. Order books are described as full through most of 2023, with management expecting to sell more large agricultural equipment in North America, Europe, and South America in 2023. Management also flagged continued inflation, ongoing supply chain disruption, and further interest-rate-driven spread compression in the financial services segment. Financial services net income was flat at $880 million, while the provision for credit losses rose on Russia exposure. Backlogs were $9.7 billion for production and precision agriculture, $4.6 billion for small agriculture and turf, and $6.5 billion for construction and forestry. Capital allocation is shareholder-friendly. Share repurchases totaled $3.6 billion in 2022, dividends paid were $1.3 billion, and the board authorized an additional $18 billion buyback in December 2022 on top of $2.2 billion remaining under the prior program. The quarterly dividend was set at $1.20 per share. Balance sheet metrics stayed sound, with cash and marketable securities of $5.5 billion and unused credit lines of $3.3 billion, and the company reported an unqualified audit opinion from Deloitte with effective internal control over financial reporting.
Dec 15, 2022
2021
DEERE & CO Annual Report, Year Ended Oct 31, 2021
Deere & Company's fiscal 2021 (year ended October 31, 2021) was a strong year marked by a sharp rebound in profitability. Worldwide net sales and revenues rose 24% to $44.0 billion, and net income attributable to the company more than doubled to $5.96 billion, or $18.99 per diluted share, versus $2.75 billion ($8.69) in 2020. The improvement was driven mainly by price realization, higher shipment volumes and sales mix across the production and precision agriculture, small agriculture and turf, and construction and forestry segments, along with a lower cost of sales ratio (73.3% vs. 75.7%). The prior year had been depressed by impairments and employee-separation costs. The company also reorganized into four reportable segments, and the financial services arm earned $881 million. Balance sheet and cash flow were solid. Operating cash flow was $7.7 billion, and the company repurchased $2.5 billion of stock and paid $1.04 billion in dividends. Stockholders' equity rose to $18.4 billion, and the equipment operations' debt-to-capital ratio improved to 36% from 45%. Backlog for production and precision agriculture ($9.6 billion) and construction and forestry ($6.7 billion) increased sharply, supporting the outlook for fiscal 2022 with forecast growth in large ag machinery (about 15%) and North American construction equipment (5 to 10%). Key risks flagged for investors include the October 2021 UAW strike at 14 U.S. facilities, which was resolved in November with a six-year contract that adds pension and labor costs and is expected to hurt results in the first quarter of fiscal 2022. Ongoing supply chain shortages and logistics constraints, persistent inflationary pressure, the planned dissolution of the Hitachi construction joint venture, LIBOR transition, and exposure to trade policy and farm income cycles remain material. Management also noted a $1 billion voluntary OPEB contribution in late November 2021 and a planned Kreisel Electric acquisition, both of which affect near-term cash deployment.
Dec 16, 2021
2020
DEERE & CO Annual Report, Year Ended Nov 1, 2020
Deere & Company's fiscal 2020 10-K (year ended November 1, 2020) shows a company that absorbed a sharp revenue decline from COVID-19 while preserving profitability and liquidity. Worldwide net sales and revenues fell 9% to $35.54 billion, and net income attributable to the company dropped 15% to $2.751 billion ($8.69 diluted EPS, versus $10.15). Results were weighed down by $458 million after-tax in impairments and employee-separation costs. Equipment net sales declined 10% to $31.27 billion, with construction and forestry down 20% and agriculture and turf down 6%. Partially offsetting this, cost of sales as a percentage of net sales improved to 75.7% from 76.8%, driven by price realization, lower warranty expense and improved production costs. Agriculture and turf operating profit actually rose 18% to $2.97 billion, while construction and forestry operating profit fell 51% to $590 million. Balance sheet and cash flow were strong. Management raised borrowings in the second quarter to build liquidity, ending the year with $7.07 billion in cash and undrawn revolving credit facilities. Operating cash flow was $7.48 billion, up from $3.41 billion in 2019. Share repurchases were suspended for much of the year and resumed only in the fourth quarter ($487 million). Dividends were held at $3.04 per share. Equipment operations debt-to-capital rose to 45% from 36%, a deliberate step that reflects the pandemic-driven caution rather than structural stress. Financial services net income rose 5% to $566 million, helped by lower impairments and residual value losses. Looking forward, management guides to a 2021 recovery: U.S. and Canadian agricultural industry sales are forecast up 5 to 10%, while North American construction equipment sales are expected to fall about 5%. Investors should weigh the strength of the agricultural cycle and cash generation against continued construction weakness, elevated post-pandemic uncertainty, and the rising debt load.
Dec 17, 2020
2019
DEERE & CO Annual Report, Year Ended Nov 3, 2019
Deere & Company's fiscal 2019 (ended November 3, 2019) was a strong year on the bottom line, with net income attributable to the company of $3.253 billion, or $10.15 per diluted share, up from $2.368 billion ($7.24) in 2018. Worldwide net sales and revenues rose 5% to $39.258 billion. Growth was driven by price realization and higher shipment volumes in construction and forestry, which was boosted by the Wirtgen acquisition (including two extra months of results, adding roughly 1 percent to total net sales). The 2018 comparison was also depressed by a $704 million tax-reform charge, so the year-over-year improvement in earnings is partly flattered by base effects. Equipment operations net income rose to $2.698 billion, while financial services net income fell 43% to $539 million on impairments, higher operating lease residual losses, and unfavorable financing spreads. The outlook for fiscal 2020 is noticeably weaker. Management forecasts net income of $2.7 billion to $3.1 billion, implying a decline from 2019. Agriculture and turf sales are expected to fall about 5 to 10 percent, with U.S. and Canada industry sales down roughly 5 percent on lower demand for large equipment, while construction and forestry sales are expected to fall 10 to 15 percent as construction activity slows and dealers work down inventory. Financial services net income is expected to be about $600 million. Management also announced a voluntary employee-separation program costing about $120 to $140 million, with annual savings of roughly $90 to $115 million. Management cites trade tensions, farmer caution on major purchases, and weather as headwinds. The balance sheet and capital returns remain solid. Stockholders' equity was $11.4 billion, total assets were $73.0 billion, and the company repurchased $1.25 billion of stock and paid $943 million in dividends during the year. Management also authorized an additional $8 billion buyback in December 2019, and the Board declared a quarterly dividend of $0.76 per share. Credit ratings are A (Fitch), A2 (Moody's), and A (S&P), all with stable outlooks. Investors should weigh the strong 2019 earnings and cash returns against the sharp expected softening in equipment demand and rising financial services credit and residual risk.
Dec 19, 2019
2018
DEERE & CO Annual Report, Year Ended Oct 28, 2018
Deere & Company (DE) reported strong results for the fiscal year ending October 27, 2018, with net income attributable to the company reaching $2.37 billion, a significant increase from the previous year. This growth was driven by a substantial rise in net sales and revenues to $37.36 billion, up 26% year-over-year. The acquisition of the Wirtgen Group in December 2017 was a major contributor, adding 12% to net sales. The company's equipment operations saw strong performance, particularly in the Agriculture and Turf segment, with improved shipment volumes, price realization, and lower warranty costs driving operating profit. The Financial Services segment also performed well, with higher average portfolios and a lower provision for credit losses contributing to increased net income. Looking ahead to fiscal year 2019, Deere anticipates continued sales growth of approximately 7%, driven by a full year of Wirtgen sales and continued demand in key markets. However, foreign currency translation is expected to have an unfavorable impact of about 2%. The company forecasts net income attributable to Deere & Company to be around $3.6 billion, signaling continued confidence in its market position and product offerings, particularly in precision technologies.
Dec 17, 2018
2017
DEERE & CO Annual Report, Year Ended Oct 29, 2017
Deere & Company's 2017 10-K filing reveals a robust year characterized by significant revenue growth and improved profitability across its equipment operations. The company reported a 12% increase in worldwide net sales and revenues, reaching $29.7 billion, driven by a 11% rise in equipment operations sales. Net income attributable to Deere & Company surged by 42% to $2.16 billion, or $6.68 per diluted share, reflecting strong performance in both Agriculture & Turf and Construction & Forestry segments. A major strategic development during the year was the completion of the acquisition of the Wirtgen Group in December 2017, positioning Deere as a leading manufacturer in the global road construction equipment market. This acquisition is expected to contribute significantly to future sales and profitability. Looking ahead, Deere projects continued sales growth for fiscal year 2018, driven by anticipated improvements in agricultural and construction markets, further bolstered by the Wirtgen integration.
Dec 18, 2017
2016
DEERE & CO Annual Report, Year Ended Oct 31, 2016
Deere & Company's fiscal 2016 10-K (year ended October 31, 2016) shows a company navigating a sharp agricultural and construction downturn while maintaining profitability and a strong balance sheet. Worldwide net sales and revenues fell 8% to $26,644 million, and net income attributable to Deere fell 21% to $1,524 million ($4.81 diluted EPS), versus $1,940 million ($5.77) in 2015. Equipment net sales declined 9%, with U.S. and Canada sales down 13%. Equipment operating profit dropped to $1,880 million from $2,177 million, driven by lower shipment volumes, currency headwinds, and product mix, partly offset by price realization and cost reductions. The financial services segment's net income fell to $468 million from $633 million on weaker financing spreads, higher lease residual losses, and higher credit loss provisions. Management guides to a further modest decline in 2017: equipment sales down about 1%, U.S. and Canada agricultural industry sales down 5-10%, construction and forestry up about 1%, and net income of roughly $1.4 billion. Management announced voluntary employee separation programs with an estimated $111 million pretax cost (mostly recorded in Q1 2017) and expected savings of about $70 million in 2017. A December 2016 partial sale of its SiteOne Landscape Supply stake is expected to produce a roughly $105 million pretax gain, which is excluded from the 2017 forecast. Financially, Deere generated $3,764 million in operating cash flow, returned $761 million in dividends and $205 million in buybacks, and ended with $4,789 million in cash and marketable securities. Stockholders' equity declined to $6,520 million, largely due to a $908 million after-tax pension and retirement benefit charge in other comprehensive loss. Investors should weigh the cyclical trough against Deere's liquidity, its large financial services book (about $38 billion of receivables and leases administered), and the rising pension and retiree health obligations on the balance sheet.
Dec 19, 2016
2015-A
DEERE & CO Annual Report (Amendment), Year Ended Oct 31, 2015
Deere & Company's fiscal 2015 (year ended October 31, 2015) was a sharply weaker year, driven by a downturn in agricultural and turf demand. Net sales fell 22% to $25.8 billion from $33.0 billion, and total net sales and revenues fell 20% to $28.9 billion. Net income attributable to Deere dropped 39% to $1.94 billion, and diluted EPS fell to $5.77 from $8.63. Agriculture and turf operating profit fell 55% to $1.65 billion, while construction and forestry operating profit declined 19% to $528 million. Financial Services operating profit rose 5% to $963 million, providing a partial offset. Operating cash flow rose to $3.74 billion, and the company returned capital through $2.77 billion of share repurchases and $816 million of dividends paid, while still increasing the quarterly dividend declared to $0.60 per share. The balance sheet shows meaningful strain on equity. Total Deere stockholders' equity fell to $6.74 billion from $9.06 billion, largely because of buybacks that exceeded earnings, a $935 million cumulative translation loss, and a $946 million total other comprehensive loss. Treasury stock grew to $15.5 billion. Deere recorded a $384 million valuation allowance on deferred tax assets, which pushed the effective tax rate up sharply and contributed to the earnings decline. Total assets were $57.9 billion, and the equipment operations held $3.8 billion of inventory. Long-term borrowings were $23.8 billion, mostly within Financial Services. This document is Amendment No. 1 to the original 10-K filed December 18, 2015. Its sole purpose was to correct typographical errors in the auditor's report (Deloitte & Touche LLP) regarding the three-year period covered. The financial statements themselves are unchanged from the original filing, so investors should rely on the original 10-K for the same underlying data.
Feb 1, 2016
2015
DEERE & CO Annual Report, Year Ended Oct 31, 2015
Deere & Company's fiscal 2015 10-K (year ended October 31, 2015) shows a sharp earnings downturn driven by weak farm and construction equipment demand. Net sales and revenues fell 20% to $28.9 billion, and net income attributable to Deere fell 39% to $1.94 billion ($5.77 diluted EPS), down from $3.16 billion ($8.63) in 2014. Equipment operations' operating profit dropped to $2.18 billion from $4.30 billion, and the cost of sales ratio rose to 78.1% from 75.2%, reflecting lower shipment volumes, unfavorable mix and a roughly 5-point currency translation headwind. Agriculture and turf sales fell 25%, and construction and forestry sales fell 9%. Financial services net income rose modestly to $633 million, helped by a one-time gain on the crop insurance sale. Balance sheet and cash flow remain solid. Operating cash flow was $3.74 billion, and the company repurchased $2.77 billion of stock and paid $816 million in dividends. Stockholders' equity fell to $6.74 billion from $9.06 billion, largely because of buybacks and a $935 million currency translation loss, and the company's total debt-to-capital ratio for equipment operations rose to 42% from 36%. Management guides fiscal 2016 equipment sales down about 7%, with net income of roughly $1.4 billion, citing sharply lower North American and South American agricultural demand. Ratings remain A2/A stable. For investors, the key issues are the cyclical trough in farm income, the margin pressure from product mix and currency, and whether the company's aggressive buybacks can be sustained while earnings decline. The 2016 outlook implies further earnings pressure before any recovery, though management describes this downturn as less severe than prior ones.
Dec 18, 2015
2014
DEERE & CO Annual Report, Year Ended Oct 31, 2014
Deere & Company's fiscal 2014 (year ended October 31, 2014) was a year of solid but declining results, with management guiding to a sharper downturn in 2015. Worldwide net sales and revenues fell 5% to $36.07 billion, and net income attributable to Deere fell 11% to $3.16 billion ($8.63 diluted EPS, versus $9.09 in 2013). Equipment operations net sales decreased 6% to $32.96 billion, driven by lower shipment volumes, an unfavorable currency effect, and a 75.2% cost-of-sales ratio (up from 73.3%) reflecting product mix, engine emission costs, and FX. Financial services net income rose to $624 million on portfolio growth, helped by a more favorable tax rate, though crop insurance margins were lower. The forward outlook is the most important element for investors. Equipment sales are projected to fall about 15% in fiscal 2015 (about 21% in the first quarter), agriculture and turf sales about 20%, and U.S./Canada farm equipment industry sales 25-30%. Construction and forestry sales are expected to rise about 5%. Net income for fiscal 2015 is guided to roughly $1.9 billion, and financial services income to about $610 million on higher expected credit provisions. Management's framing is that the company remains solidly profitable and well positioned through the cycle. Capital allocation remained shareholder-friendly. Deere repurchased $2.73 billion of stock and paid $786 million in dividends, while the dividend declared rose to $2.22 per share from $1.99. Shareholder returns were funded in part by increased borrowings, and about $6.23 billion remained under the $8 billion repurchase authorization. The company also agreed in December 2014 to sell its Crop Insurance operations (about $725 million in assets) and divested Landscapes and Water operations during the year. Ongoing risks include weak farm incomes, currency translation, tightening emissions standards, and the financial services segment's exposure to credit losses and funding costs.
Dec 19, 2014
2013
DEERE & CO Annual Report, Year Ended Oct 31, 2013
Deere & Company's fiscal 2013 10-K (year ended October 31, 2013) shows a strong year with record profitability. Worldwide net income attributable to Deere was $3,537 million ($9.09 diluted EPS), up 15% from $3,065 million ($7.63) in 2012. Net sales and revenues rose 5% to $37,795 million, driven by price realization of 3% and higher shipment volumes in agriculture and turf. Equipment operations operating profit reached $5,058 million, and the cost of sales ratio improved to 73.3% from 74.6%. Agriculture and turf operating profit grew to $4,680 million, while construction and forestry profit fell to $378 million on an 8% sales decline. Financial services net income rose to $565 million on credit portfolio growth and higher crop insurance margins. The outlook is more cautious. Management projects fiscal 2014 equipment sales to fall about 3%, with agriculture and turf down about 6% as lower commodity prices and farm incomes weigh on large equipment demand, particularly in the U.S., Canada, and South America. Construction and forestry sales are forecast to rise about 10% on U.S. housing and economic recovery. Net income for fiscal 2014 is anticipated at about $3.3 billion, below 2013. Deere is also restructuring its portfolio, agreeing in October 2013 to sell a 60% stake in John Deere Landscapes to a Clayton, Dubilier & Rice affiliate, and reviewing strategic options for John Deere Water. Capital allocation remained shareholder-friendly. Deere repurchased $1,531 million of stock and paid $753 million in dividends in 2013. In December 2013 the board authorized an additional $8,000 million buyback and declared a $0.51 quarterly dividend. Balance sheet strength is evident from a $10,266 million stockholders' equity base, improved by a $1,950 million retirement benefits adjustment, and a funded status that moved from a $1,817 million pension liability to a $40 million asset. Key risks disclosed include trade policy, commodity price swings, emissions-driven R&D costs, eurozone and emerging-market exposure, and GPS spectrum reallocation.
Dec 16, 2013
2012
DEERE & CO Annual Report, Year Ended Oct 31, 2012
Deere & Company's fiscal 2012 10-K (fiscal year ended October 31, 2012) shows a strong year driven by pricing and volume. Net sales and revenues rose 13% to $36,157 million, and net income attributable to Deere & Company reached $3,065 million, or $7.63 per diluted share, up from $6.63 in 2011. The equipment operations posted an operating profit of $4,397 million, with agriculture and turf (net sales up 13%) and construction and forestry (up 19%) both contributing. Price realization of 4% partly offset a 3% unfavorable currency effect. The cost of sales ratio edged up to 74.6% from 74.4% on higher production and raw material costs, a goodwill impairment of $33 million at John Deere Water, and higher R&D spending of $1,434 million. The financial services segment earned $460 million, slightly below $471 million in 2011, as crop insurance claims, higher selling expenses and narrower financing spreads offset portfolio growth. Balance sheet leverage increased meaningfully: long-term borrowings rose to $22,453 million from $16,960 million, and equipment operations' total debt-to-capital ratio climbed to 46% from 35%. Share repurchases totaled $1,588 million during the year, and shareholder dividends declared rose to $1.79 per share from $1.52. Management guided fiscal 2013 to equipment sales up about 5%, with agriculture and turf up about 4% and construction and forestry up about 8%, and net income near $3.2 billion. Key risks include European sovereign debt stress, trade and government farm policy, commodity price volatility, tightening engine emission standards (Tier 4), and dependence on financing conditions for dealer and customer demand.
Dec 17, 2012
2011
DEERE & CO Annual Report, Year Ended Oct 31, 2011
Deere & Company (NYSE: DE) closed fiscal 2011 (year ended October 31, 2011) with record results. Worldwide net income attributable to Deere was $2,800 million, or $6.63 per diluted share, up sharply from $1,865 million ($4.35) in 2010. Net sales and revenues rose 23% to $32,013 million, driven mainly by higher shipment volumes (equipment net sales up 25% to $29,466 million), with price realization of 3% and a 3% favorable currency effect. The equipment operations' operating profit rose to $3,839 million from $2,909 million, though the cost of sales ratio worsened to 74.4% from 73.8% on higher raw material and overhead costs. The outlook is strongly positive. Management forecasts company equipment sales up about 15% in fiscal 2012 (16-18% in the first quarter), with net income of roughly $3.2 billion. Agriculture and turf sales are expected to rise about 15% and construction and forestry about 16%, supported by favorable farm incomes and new products. Financial services net income is guided lower, to about $450 million from $471 million, mainly because credit loss provisions are expected to normalize. The balance sheet remains solid, with stockholders' equity of $6,800 million and cash plus marketable securities of $4,435 million. Financial services carries heavy leverage, with total external debt of $22.9 billion. Management returned capital through $1,667 million of share repurchases and $593 million of dividends paid. Key risks include global trade policy, the European sovereign debt crisis, commodity price volatility, tighter off-road engine emission standards (Tier 4), and farm income cyclicality.
Dec 19, 2011
2010
DEERE & CO Annual Report, Year Ended Oct 31, 2010
Deere & Company's fiscal 2010 (year ended October 31, 2010) marked a sharp recovery from the 2009 downturn. Net income attributable to Deere rose to $1,865 million, or $4.35 per diluted share, versus $873 million ($2.06) in 2009. Net sales and revenues grew 13% to $26,005 million. The Equipment Operations drove the improvement: operating profit reached $2,909 million versus $1,365 million, helped by higher shipment volumes, better price realization, favorable currency effects and lower raw material costs. The cost of sales ratio improved to 73.8% from 78.3%. Construction and forestry sales rose 41%, and the credit segment's net income increased to $373 million on wider financing spreads and lower credit loss provisions. Management guided to a further strong fiscal 2011: equipment sales are projected to rise 10-12%, with net income of about $2.1 billion, though the forecast reflects transition costs for the record number of new models required by Interim Tier 4 emissions standards and higher raw material costs. Balance sheet items to note include total assets of $43.3 billion, long-term borrowings of $16.8 billion (mostly in Financial Services), and a Financial Services debt-to-equity ratio of 7.3 to 1. Equipment Operations debt-to-total-capital improved to 35% from 43%. Cash and marketable securities fell to $4.0 billion, partly because of share repurchases of $359 million and a $2.0 billion increase in commercial paper outstanding. Investors should also weigh several subsequent events. The wind energy business was sold for about $900 million in December 2010, and the quarterly dividend was raised 17% to $0.35 per share. Retiree health care obligations remain large, with a $4.8 billion net OPEB liability. The 2010 tax expense also rose about $130 million because of health care legislation.
Dec 17, 2010
2009
DEERE & CO Annual Report, Year Ended Oct 31, 2009
Deere & Company's fiscal 2009 (year ended October 31, 2009) was a sharply weaker year driven by the global downturn. Worldwide net sales and revenues fell 19% to $23.1 billion and net income dropped 57% to $873 million, or $2.06 per diluted share, versus $2.05 billion ($4.70 per share) in 2008. Results absorbed $381 million in pretax special charges, including a $289 million non-cash goodwill impairment tied to the John Deere Landscapes unit and $91 million of voluntary employee separation expenses. Equipment Operations net sales fell 20% to $20.8 billion, with the construction and forestry segment down 45% and agriculture and turf down 14%. Operating profit at Equipment Operations fell to $1.37 billion from $2.93 billion, and the cost-of-sales ratio rose to 78.3% from 75.9%. The balance sheet and liquidity remained solid on a cash basis. Consolidated cash and equivalents rose to $4.65 billion, operating cash flow was $1.98 billion, and Equipment Operations debt-to-capital rose to 43% from 25%, largely reflecting a $2.5 billion retirement benefits adjustment that cut stockholders' equity to $4.8 billion from $6.5 billion. Total long-term borrowings increased to $17.4 billion, mainly within Financial Services. Management expects a partial recovery in 2010: company equipment sales are forecast to fall about 1%, with South America up 10 to 15% and construction and forestry sales up about 18%, while agriculture and turf is forecast down about 4%. Net income is projected at about $900 million, although postretirement benefit costs are expected to rise roughly $400 million on lower discount rates. For investors, the key issues are the depth of the cyclical trough, the rebound in construction and forestry, the sharp increase in pension and retiree health obligations, and the rising leverage of the financing arm. Financial Services net income fell to $203 million from $337 million on higher credit-loss provisions and an increase in delinquencies in construction equipment and operating loans.
Dec 17, 2009
2008
DEERE & CO Annual Report, Year Ended Oct 31, 2008
Deere & Company's fiscal 2008 10-K (year ended October 31, 2008) shows a company at a strong earnings peak that is now entering a sharp global downturn. Worldwide net income rose 13% to $2,053 million ($4.70 diluted EPS), and net sales and revenues grew 18% to $28,438 million. Growth was driven mainly by the agricultural equipment segment, where net sales rose 37% on higher volumes, favorable currency and price realization, while commercial and consumer sales grew 2% and construction and forestry sales fell 4%. Operating profit in the agricultural segment reached $2,224 million, offset by higher raw material costs, a Canadian plant closure (Welland, Ontario, roughly $98 million of total expected charges) and a cost of sales ratio that rose to 75.9%. Management's outlook is cautious. Equipment sales are projected to be roughly flat in 2009, with first-quarter sales up about 7%, and net income is forecast at about $1.9 billion. Agricultural sales are expected to rise about 5%, while commercial and consumer sales (down about 6%) and construction and forestry sales (down about 12%) are expected to weaken with the U.S. housing market and nonresidential construction. Financial Services faces narrower funding spreads, with credit segment net income forecast to fall to about $300 million from $337 million. Currency translation is a roughly 6% headwind to 2009 sales. Balance-sheet and capital-return items matter for investors. Stockholders' equity fell to $6.5 billion from $7.2 billion because of $1.7 billion in buybacks and a pension and retiree-benefit adjustment, and pension assets dropped sharply as the actual plan return was a loss of about $2.2 billion. Management also reports a $5 billion buyback authorization, $2.1 billion of commercial paper guaranteed under the FDIC's Temporary Liquidity Guarantee Program, and a $3.75 billion credit facility. Total long-term borrowings rose to $13.9 billion, largely at Financial Services, which carries most of the company's debt against its receivables portfolio.
Dec 18, 2008
2007
DEERE & CO Annual Report, Year Ended Oct 31, 2007
Deere & Company (DE) reported a strong fiscal year 2007, with net income increasing to $1.82 billion, or $4.00 per diluted share, up from $1.69 billion in 2006. This growth was driven by robust performance in the Agricultural Equipment segment, benefiting from positive global farm conditions, healthy commodity prices, and demand for renewable fuels. The company also saw an increase in net sales and revenues, reaching $24.08 billion, a 9% rise year-over-year. Key strategic moves in 2007 included the acquisition of LESCO, Inc., expanding its commercial and consumer equipment offerings, and the purchase of Ningbo Benye Tractor & Automobile Manufacturing Co., Ltd. in China, strengthening its agricultural segment's global presence. While the Construction and Forestry segment faced headwinds due to the U.S. housing market downturn, the company's outlook for fiscal year 2008 remained positive, with projected sales increases across most segments, particularly in agriculture. The company also continued its commitment to returning value to shareholders, repurchasing approximately $1.5 billion in common stock and paying dividends.
Dec 20, 2007
2006
DEERE & CO Annual Report, Year Ended Oct 31, 2006
Deere & Company's 2006 10-K report highlights a year of solid financial performance, marked by an increase in net sales and revenues to $22.15 billion and net income of $1.69 billion. The company demonstrated strong operational execution across its key segments: Agricultural Equipment, Commercial and Consumer Equipment, and Construction and Forestry. The Financial Services segment also contributed significantly to overall profitability, driven by portfolio growth. Looking ahead, Deere anticipates a roughly flat sales performance for the full fiscal year 2007, with a projected 5% increase in the first quarter. The company is managing production levels proactively to align with market demand. Despite some regional headwinds, particularly in agriculture due to used equipment inventories and legislative uncertainty in North America, and a slowdown expected in construction and forestry, Deere remains optimistic about global farm economic conditions and the ongoing demand for its products and services. The company also reported substantial stock repurchases during the year and continued its commitment to research and development to drive future innovation.
Dec 19, 2006
2005
DEERE & CO Annual Report, Year Ended Oct 31, 2005
Deere & Company's 2005 10-K report indicates a strong financial performance with net income of $1.447 billion on net sales and revenues of $21.931 billion, representing a 10% increase from the previous year. The company successfully navigated increased costs through improved pricing and cost reduction measures, while also returning significant value to shareholders through share repurchases and dividends. The outlook for fiscal year 2006 suggests moderate growth in equipment sales, with the commercial and consumer equipment segment and construction and forestry segment expected to see the most significant increases. However, the agricultural equipment segment faces potential headwinds due to rising input costs for farmers and shifts in government policies. The company also plans to divest its health care operations for a significant gain, which will impact the reported net income for the upcoming year.
Dec 20, 2005
2004
DEERE & CO Annual Report, Year Ended Oct 31, 2004
Deere & Company (DE) reported a strong financial performance for the fiscal year ended October 31, 2004. Net sales and revenues surged by 29% to $19.99 billion, driven by significant growth across all equipment segments, particularly agricultural and construction/forestry equipment. This top-line expansion, coupled with improved price realization and manufacturing efficiencies, led to a substantial increase in net income, which more than doubled to $1.41 billion ($5.56 per diluted share) from $643 million ($2.64 per diluted share) in the prior year. The company's outlook for fiscal year 2005 remains positive, with projected equipment sales growth of 2-7% and a net income forecast of approximately $1.5 billion. Growth is expected to be supported by favorable agricultural conditions in the U.S., continued demand in commercial and consumer equipment, and a strong construction and forestry market. While the Financial Services segment is expected to see a dip in net income due to increased leverage, overall, Deere & Company is well-positioned for continued growth.
Dec 21, 2004
2003
DEERE & CO Annual Report, Year Ended Oct 31, 2003
Deere & Company reported a significant turnaround in fiscal year 2003, with net income more than doubling to $643 million, or $2.64 per diluted share, compared to $319 million, or $1.33 per diluted share, in 2002. This strong performance was driven by improved market conditions, particularly in the commercial and consumer equipment and construction and forestry segments, coupled with effective cost management and successful new product introductions. The company also saw a healthy increase in net sales and revenues, reaching $15.5 billion, up 11% year-over-year, supported by higher physical volumes and improved price realization, especially in international markets. The company's outlook for fiscal year 2004 is optimistic, with projected sales growth of 9-11% and net income expected to range between $750 million and $850 million. This projection is underpinned by continued strength in the agricultural sector, benefiting from favorable farm income, and expected growth in commercial and consumer equipment driven by new product success. The construction and forestry segment is also anticipated to see modest growth, further bolstered by the consolidation of Nortrax, Inc. The credit operations are expected to contribute steadily, though net income may be slightly down due to lower gains on receivable sales.
Dec 22, 2003
2002
DEERE & CO Annual Report, Year Ended Oct 31, 2002
Deere & Company (DE) has reported a significant turnaround in its fiscal year ended October 31, 2002, moving from a net loss of $64 million in 2001 to a net income of $319 million. This improvement was driven by better price realization, effective cost reduction initiatives, and positive customer response to new products across its agricultural and commercial and consumer equipment segments. The company's financial services segment also demonstrated strength, with net income increasing to $262 million. Looking ahead, Deere & Company projects continued growth, forecasting equipment sales to increase by 8-10% for the full fiscal year 2003. This optimism is supported by expected improvements in agricultural commodity prices, new product introductions like the 100-series lawn tractors, and a strategic marketing agreement with Hitachi Construction Machinery. The company is also managing its financial structure effectively, with credit operations expected to see a more than 20% increase in net income.
Dec 20, 2002
1993-A
DEERE & CO Annual Report (Amendment), Year Ended Oct 31, 1993
This is Amendment No. 1 (Form 10-K/A) to Deere & Company's annual report for the fiscal year ended October 31, 1993. It was filed under Rule 15d-21 to add Form 11-K information for two employee savings plans: the John Deere Savings and Investment Plan and the John Deere Tax Deferred Savings Plan for Hourly and Incentive Paid Employees. The filing contains no consolidated company financial statements, revenue, earnings, or segment data, so it does not describe Deere's operating performance. Those figures would be in the original 10-K for the same fiscal year. The cover page reports 85,605,030 common shares outstanding at December 31, 1993, and an aggregate market value of $6.32 billion held by nonaffiliates. The exhibit index adds consents from Deloitte & Touche (Exhibits 23.2 and 23.3) and the audited plan statements (Exhibits 99.3 and 99.4). Deloitte's reports, dated April 1, 1994, are unqualified, though both note a 1993 change in how benefits payable to withdrawn participants are accounted for, with prior periods restated. For investors, the most relevant data is employee-benefit activity. The Savings and Investment Plan had net assets of $579.4 million at October 31, 1993, up from $461.9 million a year earlier, and its Deere common stock fund held about $32.6 million in stock. The Tax Deferred Savings Plan had net assets of $112.8 million. Employer matching in the larger plan fell from 75% for calendar 1991 to 30% for 1993, which reflects the company's lower profitability. Employees were net sellers of Deere stock in the Savings Plan during 1993, with $44.1 million in sales against $31.7 million in purchases.
Apr 27, 1994
1993
DEERE & CO Annual Report, Year Ended Oct 31, 1993
Deere & Company's fiscal 1993 (year ended October 31, 1993) was dominated by a large non-cash accounting charge. The company reported a worldwide net loss of $921 million, or $11.91 per share, after adopting FASB Statements 106 (postretirement benefits) and 112 (postemployment benefits) effective November 1, 1992, which produced a $1,105 million after-tax cumulative charge ($14.30 per share). Before special items, income was $286 million ($3.70 per share), versus $37 million ($0.49 per share) in 1992. After restructuring charges ($80 million after tax from the European downsizing), the accounting changes, and a tax-rate benefit, income before the accounting change was $184 million ($2.39 per share). Worldwide net sales and revenues rose 11% to $7,754 million, and net equipment sales rose 13% to $6,479 million, driven by a sharp recovery in North American agricultural, industrial, and lawn and grounds care demand.
Jan 28, 1994