Summary
Deere & Company's 2008 10-K filing, filed in December 2008, reflects a company navigating a complex economic environment marked by the global financial crisis. Despite this, Deere demonstrated resilience, reporting an 18% increase in total net sales and revenues to $28.4 billion and a 12% rise in net income to $2.05 billion. The agricultural equipment segment was a strong performer, with net sales up 37% driven by higher volumes and improved pricing, though impacted by rising raw material costs. Conversely, the construction and forestry segment saw a 4% decrease in net sales due to weakening housing and construction markets. The company highlighted significant risks including government actions, changing agricultural demand, globalization, currency fluctuations, and the volatile economic outlook. Access to credit for both the company's financial services arm and its customers was a key concern. Deere also noted the impact of weather and supply chain disruptions. Despite these challenges, Deere maintained a positive outlook, citing long-term favorable trends such as growing global demand for commodities and renewable fuels.
Financial Highlights
31 data points| Revenue | $28.44B |
| Cost of Revenue | $19.57B |
| Gross Profit | $8.86B |
| R&D Expenses | $943.10M |
| SG&A Expenses | $2.96B |
| Operating Income | $3.42B |
| Interest Expense | $1.14B |
| Net Income | $2.05B |
| EPS (Basic) | $4.76 |
| EPS (Diluted) | $4.70 |
| Shares Outstanding (Basic) | 431.10M |
| Shares Outstanding (Diluted) | 436.30M |
Key Highlights
- 1Deere & Company reported an 18% increase in total net sales and revenues to $28.4 billion and a 12% increase in net income to $2.05 billion for the fiscal year ended October 31, 2008.
- 2The Agricultural Equipment segment was a primary driver of growth, with net sales increasing 37% year-over-year, supported by strong demand and favorable pricing.
- 3The Construction and Forestry segment experienced a 4% decrease in net sales, reflecting the negative impact of the worsening housing market and overall economic downturn.
- 4The company's Financial Services segment saw a decrease in net income to $337 million, primarily due to higher operating expenses and an increased provision for credit losses.
- 5Deere identified significant risks including global economic downturn, financial market turmoil, currency fluctuations, and governmental actions affecting agricultural trade and customer access to credit.
- 6The company actively repurchased its common stock, with 4.78 million shares purchased in the fourth quarter of 2008 under authorized programs totaling $5 billion.
- 7Deere maintained a stable credit rating, with 'A2' from Moody's and 'A' from Standard & Poor's, both with a 'Stable' outlook.