Summary
Deere & Company's 2014 10-K filing reveals a year of mixed performance, with a decline in net income and sales compared to 2013, largely attributed to weakening conditions in the global farm sector and a 5% decrease in worldwide net sales and revenues to $36.1 billion. Despite these headwinds, the company maintained profitability, reporting net income of $3.16 billion, or $8.63 per diluted share. The company's Construction and Forestry segment showed strength with a 12% increase in sales, while Financial Services also saw an improvement in net income. Deere & Company's outlook for 2015 projected a further decrease in agricultural equipment sales but anticipated continued growth in Construction and Forestry, aiming to remain solidly profitable. The report highlights the company's commitment to returning capital to shareholders, evidenced by significant share repurchases totaling $2.7 billion in the fourth quarter of fiscal year 2014 under an $8 billion repurchase program. The company also continued its practice of paying dividends, with dividends declared per share increasing to $2.22 from $1.99 in the prior year. Deere & Company emphasized its long-term positioning to benefit from global demand for food, shelter, and infrastructure, while also acknowledging various risks, including adverse governmental policies, economic uncertainties, and the need to adapt to increasingly stringent environmental regulations.
Financial Highlights
34 data points| Revenue | $36.07B |
| Cost of Revenue | $24.78B |
| Gross Profit | $11.29B |
| R&D Expenses | $1.45B |
| SG&A Expenses | $3.28B |
| Operating Expenses | $31.27B |
| Operating Income | $5.22B |
| Interest Expense | $664.00M |
| Net Income | $3.16B |
| EPS (Basic) | $8.71 |
| EPS (Diluted) | $8.63 |
| Shares Outstanding (Basic) | 363.00M |
| Shares Outstanding (Diluted) | 366.10M |
Key Highlights
- 1Net income attributable to Deere & Company decreased to $3.16 billion in 2014 from $3.54 billion in 2013.
- 2Worldwide net sales and revenues declined by 5% to $36.07 billion in 2014.
- 3The Agriculture and Turf segment experienced a 9% decrease in net sales, primarily due to lower shipment volumes and the sale of certain operations.
- 4Construction and Forestry segment sales increased by 12% in 2014, demonstrating segment strength.
- 5Financial Services operating profit increased to $921 million from $870 million in the prior year.
- 6Deere & Company repurchased approximately $2.73 billion of its common stock during the fourth quarter of fiscal year 2014.
- 7The company's outlook for fiscal year 2015 projected a further 15% decrease in equipment sales, with net income anticipated to be around $1.9 billion.