01—Abstract
Summary
Summary of the 10-K filed December 20, 2007. Cited figures are marked; the original filing is the authoritative source.
Deere & Company (DE) reported a strong fiscal year 2007, with net income increasing to $1.82 billiona, 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 billionb, 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 billionc in common stock and paying dividends.
02—Key points
Key Highlights
- Net income increased to $1.82 billion ($4.00/share diluted) in FY2007 from $1.69 billion ($3.59/share diluted) in FY2006.
- Net sales and revenues grew 9% to $24.08 billion in FY2007, driven by an 8% increase in Equipment Operations sales.
- Agricultural Equipment segment operating profit saw significant growth, increasing to $1.44 billion in FY2007 from $882 million in FY2006.
- Acquisitions of LESCO, Inc. and Ningbo Benye Tractor & Automobile Manufacturing Co., Ltd. were completed in 2007 to expand market reach and product offerings.
- The company returned $1.9 billion to investors in FY2007 through share repurchases ($1.5 billion) and dividends ($0.4 billion).
- Despite a challenging U.S. housing market impacting Construction and Forestry equipment sales, the company projected a flat sales outlook for this segment in FY2008.
- Strong demand in global farm sectors and high commodity prices, coupled with low grain stocks, provided a positive outlook for Agricultural Equipment sales in FY2008.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2007filed December 20, 2007Financial Statements
| 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 |
05—Questions
Frequently Asked Questions
What was Deere & Company's financial performance in fiscal year 2007?
In fiscal year 2007, Deere & Company reported a net income of $1.82 billion, or $4.00 per diluted share, an increase from $1.69 billion, or $3.59 per diluted share, in fiscal year 2006. Net sales and revenues increased by 9% to $24.08 billion.
Which business segments performed strongest in 2007?
The Agricultural Equipment segment was the strongest performer, with operating profit increasing significantly to $1.44 billion in 2007 from $882 million in 2006. This was driven by favorable global farm conditions and robust demand.
What were Deere's key strategic initiatives or acquisitions in 2007?
Deere & Company made two key acquisitions in 2007: LESCO, Inc. to bolster its commercial and consumer equipment business, and Ningbo Benye Tractor & Automobile Manufacturing Co., Ltd. in China to expand its agricultural equipment manufacturing footprint.
What is the company's outlook for fiscal year 2008?
The company anticipates a positive outlook for fiscal year 2008, projecting an approximately 12% increase in overall equipment sales. The Agricultural Equipment segment is expected to see a strong 17% increase in sales, while the Construction and Forestry segment sales are projected to be approximately flat due to the continuing impact of the U.S. housing market downturn.
06—Continue