Summary
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.
Financial Highlights
27 data points| Revenue | $24.08B |
| Cost of Revenue | $16.25B |
| Gross Profit | $7.83B |
| R&D Expenses | $816.80M |
| SG&A Expenses | $2.62B |
| Interest Expense | $1.15B |
| Net Income | $1.82B |
| EPS (Basic) | $4.05 |
| EPS (Diluted) | $4.00 |
| Shares Outstanding (Basic) | 449.30M |
| Shares Outstanding (Diluted) | 455.00M |
Key Highlights
- 1Net income increased to $1.82 billion ($4.00/share diluted) in FY2007 from $1.69 billion ($3.59/share diluted) in FY2006.
- 2Net sales and revenues grew 9% to $24.08 billion in FY2007, driven by an 8% increase in Equipment Operations sales.
- 3Agricultural Equipment segment operating profit saw significant growth, increasing to $1.44 billion in FY2007 from $882 million in FY2006.
- 4Acquisitions of LESCO, Inc. and Ningbo Benye Tractor & Automobile Manufacturing Co., Ltd. were completed in 2007 to expand market reach and product offerings.
- 5The company returned $1.9 billion to investors in FY2007 through share repurchases ($1.5 billion) and dividends ($0.4 billion).
- 6Despite a challenging U.S. housing market impacting Construction and Forestry equipment sales, the company projected a flat sales outlook for this segment in FY2008.
- 7Strong demand in global farm sectors and high commodity prices, coupled with low grain stocks, provided a positive outlook for Agricultural Equipment sales in FY2008.