Early Access

10-KPeriod: FY2011

DEERE & CO Annual Report, Year Ended Oct 31, 2011

Filed December 19, 2011For Securities:DE

Summary

Deere & Company's (DE) 10-K filing for the fiscal year ending October 31, 2011, reveals a strong financial performance driven by significant increases in net sales and income. The company reported a substantial jump in net sales to $32.01 billion, a 23% increase from the prior year, with net income attributable to Deere & Company reaching $2.8 billion, up from $1.87 billion in 2010. This growth was fueled by higher shipment volumes and improved price realization across both its agriculture and turf, and construction and forestry segments. The company's outlook for fiscal year 2012 remains optimistic, with forecasts for continued sales and earnings growth, supported by favorable agricultural commodity prices and the launch of new products. Deere & Company's financial services segment also demonstrated resilience, with increased operating profit due to portfolio growth and a lower provision for credit losses. Despite facing global economic uncertainties, sovereign debt concerns, and regulatory reforms, the company maintained a strong cash flow position, actively managing risks through its various financial instruments and credit facilities.

Financial Statements
Beta
Revenue$32.01B
Cost of Revenue$21.92B
Gross Profit$10.09B
R&D Expenses$1.23B
SG&A Expenses$3.17B
Operating Expenses$27.79B
Operating Income$4.56B
Interest Expense$759.40M
Net Income$2.80B
EPS (Basic)$6.71
EPS (Diluted)$6.63
Shares Outstanding (Basic)417.40M
Shares Outstanding (Diluted)422.40M

Key Highlights

  • 1Net sales increased by 23% to $32.01 billion in fiscal year 2011.
  • 2Net income attributable to Deere & Company rose to $2.8 billion ($6.63 per diluted share), a significant increase from $1.87 billion ($4.35 per diluted share) in fiscal year 2010.
  • 3The Agriculture and Turf segment experienced a 21% increase in net sales, with operating profit growing substantially.
  • 4The Construction and Forestry segment saw a 45% increase in net sales, with operating profit also showing significant improvement.
  • 5The Financial Services segment reported an operating profit of $725 million, up from $499 million in the prior year.
  • 6The company expects further sales and earnings growth in fiscal year 2012, projecting a net income of approximately $3.2 billion.
  • 7Deere & Company repurchased $1.67 billion of its common stock in fiscal year 2011 under its ongoing share repurchase program.

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