Summary
Deere & Company (DE) reported strong results for the fiscal year ending October 27, 2018, with net income attributable to the company reaching $2.37 billion, a significant increase from the previous year. This growth was driven by a substantial rise in net sales and revenues to $37.36 billion, up 26% year-over-year. The acquisition of the Wirtgen Group in December 2017 was a major contributor, adding 12% to net sales. The company's equipment operations saw strong performance, particularly in the Agriculture and Turf segment, with improved shipment volumes, price realization, and lower warranty costs driving operating profit. The Financial Services segment also performed well, with higher average portfolios and a lower provision for credit losses contributing to increased net income. Looking ahead to fiscal year 2019, Deere anticipates continued sales growth of approximately 7%, driven by a full year of Wirtgen sales and continued demand in key markets. However, foreign currency translation is expected to have an unfavorable impact of about 2%. The company forecasts net income attributable to Deere & Company to be around $3.6 billion, signaling continued confidence in its market position and product offerings, particularly in precision technologies.
Financial Highlights
30 data points| Revenue | $37.36B |
| R&D Expenses | $1.66B |
| SG&A Expenses | $3.46B |
| Operating Expenses | $33.29B |
| Operating Income | $4.48B |
| Interest Expense | $1.20B |
| Net Income | $2.37B |
| EPS (Basic) | $7.34 |
| EPS (Diluted) | $7.24 |
| Shares Outstanding (Basic) | 322.60M |
| Shares Outstanding (Diluted) | 327.30M |
Key Highlights
- 1**Robust Financial Performance:** Net income attributable to Deere & Company was $2.37 billion in fiscal year 2018, up from $2.16 billion in fiscal year 2017.
- 2**Significant Revenue Growth:** Total net sales and revenues increased by 26% to $37.36 billion in fiscal year 2018, driven by strong performance across segments and the acquisition of Wirtgen Group.
- 3**Wirtgen Acquisition Impact:** The acquisition of Wirtgen Group in December 2017 significantly boosted net sales, contributing 12% to the overall increase.
- 4**Strong Equipment Operations:** The Agriculture and Turf segment experienced a 15% increase in net sales and improved operating profit due to higher volumes, pricing, and reduced warranty costs.
- 5**Positive Financial Services Outlook:** Financial Services segment net income increased significantly, benefiting from a higher average portfolio and lower credit loss provisions, with expectations for continued growth in FY2019.
- 6**Positive Fiscal Year 2019 Outlook:** Deere projects a 7% increase in equipment sales for fiscal year 2019, with a target net income of approximately $3.6 billion.
- 7**Shareholder Returns:** The company continued to return value to shareholders through dividends and share repurchases, with $2.31 billion remaining on its share repurchase plan at year-end.