Summary
Deere & Company's (DE) 2013 10-K filing showcases a company experiencing revenue growth driven by increased sales in its Agriculture and Turf segment, alongside a recovery in Construction and Forestry. Net income saw a significant increase, reflecting improved price realization and higher shipment volumes across its operations. The Financial Services segment also contributed positively with growth in its credit portfolio and higher crop insurance margins. Looking ahead, Deere & Company anticipates a slight decrease in Agriculture and Turf equipment sales for fiscal year 2014, citing moderating commodity prices and farm incomes. However, the company projects a rebound in Construction and Forestry equipment sales. Management's outlook indicates healthy cash flow generation, which is being utilized for growth initiatives and returned to shareholders through dividends and share repurchases. Despite economic uncertainties and regulatory considerations, Deere remains focused on innovation and meeting global demand for its products.
Financial Highlights
31 data points| Revenue | $37.80B |
| Cost of Revenue | $25.67B |
| Gross Profit | $12.13B |
| R&D Expenses | $1.48B |
| SG&A Expenses | $3.61B |
| Operating Expenses | $32.31B |
| Operating Income | $5.93B |
| Interest Expense | $741.30M |
| Net Income | $3.54B |
| EPS (Basic) | $9.18 |
| EPS (Diluted) | $9.09 |
| Shares Outstanding (Basic) | 385.30M |
| Shares Outstanding (Diluted) | 389.20M |
Key Highlights
- 1Net income attributable to Deere & Company increased to $3,537 million ($9.09 per diluted share) in 2013 from $3,065 million ($7.63 per diluted share) in 2012.
- 2Worldwide net sales and revenues increased by 5% to $37,795 million in 2013, driven by a 4% increase in equipment operations net sales.
- 3The Agriculture and Turf segment's operating profit increased by 19% to $4,680 million in 2013, supported by higher shipment volumes and improved price realization.
- 4Construction and Forestry segment sales decreased by 8% in 2013, resulting in a lower operating profit of $378 million compared to $476 million in 2012.
- 5Financial Services operating profit rose by 22% to $870 million in 2013, primarily due to portfolio growth and higher crop insurance margins.
- 6The company repurchased approximately 9.4 million shares of common stock for $784 million during the fourth quarter of 2013 and announced an additional $8 billion share repurchase program.
- 7Deere & Company anticipates fiscal year 2014 net income to be approximately $3.3 billion, with a projected decrease of about 3% in company equipment sales.