Summary
Deere & Company (DE) reported strong financial results for the third quarter and first nine months of fiscal year 2008, driven by robust performance in its Agricultural Equipment segment. Net sales increased by 17% for both periods, reaching $7,739 million and $21,036 million, respectively. Net income also saw significant growth, up 7% to $575.2 million ($1.32 per share) for the quarter and 22% to $1,708 million ($3.89 per share) for the nine-month period, compared to the prior year. The company's performance was bolstered by favorable conditions in the global farm sector, leading to increased sales volumes and price realization, particularly in its Agricultural Equipment division, which saw a 35% sales increase in the quarter. While the Commercial and Consumer Equipment segment showed a slight decline, and the Construction and Forestry segment experienced a decrease due to market pressures, the overall strength in agriculture significantly offset these impacts. Deere & Company's financial position remains solid, with total assets growing and a strong liquidity position supported by diverse funding sources. The company also announced a significant share repurchase program and plans to close a manufacturing facility in Ontario, Canada, which is expected to result in restructuring charges in the fourth quarter.
Financial Highlights
40 data points| Revenue | $7.74B |
| Cost of Revenue | $5.42B |
| Gross Profit | $2.32B |
| R&D Expenses | $238.10M |
| SG&A Expenses | $772.00M |
| Interest Expense | $270.20M |
| Net Income | $575.20M |
| EPS (Basic) | $1.34 |
| EPS (Diluted) | $1.32 |
| Shares Outstanding (Basic) | 429.30M |
| Shares Outstanding (Diluted) | 434.40M |
Key Highlights
- 1Net sales for the third quarter increased 17% to $7.07 billion, with Agricultural Equipment sales up 35%.
- 2Net income for the quarter rose 7% to $575.2 million, or $1.32 per diluted share.
- 3For the first nine months, net sales grew 17% to $19.07 billion, and net income increased 22% to $1.71 billion, or $3.89 per diluted share.
- 4The company reported strong performance in international markets, with net sales outside the U.S. and Canada increasing 38% in the third quarter.
- 5The Construction and Forestry segment experienced a 7% sales decline due to U.S. market conditions.
- 6Deere & Company announced a new share repurchase program authorizing up to $5 billion of common stock.
- 7The company expects to incur approximately $90 million in after-tax charges related to the closure of its Welland, Ontario manufacturing facility.