Summary
Deere & Company's (DE) 2009 10-K filing reflects a challenging year impacted by a global economic downturn. The company experienced a significant decline in net sales and revenues, down 19% to $23.1 billion, with net income dropping to $873 million from $2.1 billion in the prior year. This performance was primarily driven by reduced shipment volumes across both the Agriculture and Turf and Construction and Forestry segments, exacerbated by unfavorable currency translation effects. The company also incurred charges related to goodwill impairment and voluntary employee separations. Despite the downturn, Deere maintained its financial condition and continued strategic investments, particularly in research and development for emissions-compliant engines. The company's outlook for fiscal year 2010 anticipates a modest recovery, with projected net income of approximately $900 million. While industry sales for agriculture and turf equipment are expected to decline slightly, construction and forestry markets are forecast to see a significant increase. The financial services segment is also projected to improve its net income. Key risks identified include ongoing global economic uncertainty, capital market disruptions, credit availability for customers, and evolving regulatory environments, particularly concerning environmental standards.
Financial Highlights
31 data points| Revenue | $23.11B |
| Cost of Revenue | $16.26B |
| Gross Profit | $6.86B |
| R&D Expenses | $977.00M |
| SG&A Expenses | $2.78B |
| Operating Income | $1.61B |
| Interest Expense | $1.04B |
| Net Income | $873.50M |
| EPS (Basic) | $2.07 |
| EPS (Diluted) | $2.06 |
| Shares Outstanding (Basic) | 422.80M |
| Shares Outstanding (Diluted) | 424.40M |
Key Highlights
- 1Net sales and revenues decreased by 19% to $23.1 billion in fiscal year 2009, down from $28.4 billion in 2008.
- 2Net income for fiscal year 2009 was $873 million, a significant decrease from $2.1 billion in fiscal year 2008.
- 3The company incurred charges of $381 million pre-tax ($332 million after-tax) in 2009 related to goodwill impairment and voluntary employee separation expenses.
- 4The Agriculture and Turf segment experienced a 14% decline in net sales, while the Construction and Forestry segment saw a substantial 45% decrease in net sales.
- 5The Financial Services segment's net income decreased to $203 million from $337 million in 2008, primarily due to a higher provision for credit losses.
- 6Deere & Company anticipates a net income of approximately $900 million for fiscal year 2010, indicating expectations for a recovery.
- 7The company repurchased shares under its stock repurchase plan, with 123.5 million shares remaining to be repurchased as of October 31, 2009.