Summary
Deere & Company's second-quarter 2010 report (ending April 30, 2010) demonstrates a solid rebound in performance compared to the prior year, driven by increased sales and improved operating profit across its key segments. Net income attributable to Deere & Company rose by 16% to $547.5 million, or $1.28 per diluted share, on a 6% increase in worldwide net sales and revenues to $7.13 billion. This growth was particularly strong in the construction and forestry segment, which saw a 52% increase in sales, indicating a recovery from depressed levels. Despite a notable tax charge of $130 million related to U.S. healthcare legislation, the company maintained positive momentum. The Financial Services segment also showed significant improvement, with net income up 26% due to better financing spreads and a lower provision for credit losses. Deere anticipates a strong full fiscal year 2010, projecting net income of approximately $1.6 billion, reflecting continued demand in agriculture and a recovery in construction and forestry markets. The company also signaled confidence by increasing its quarterly dividend.
Financial Highlights
45 data points| Revenue | $7.13B |
| Cost of Revenue | $4.77B |
| Gross Profit | $1.78B |
| R&D Expenses | $266.00M |
| SG&A Expenses | $733.30M |
| Operating Income | $1.10B |
| Interest Expense | $207.30M |
| Net Income | $548.00M |
| EPS (Basic) | $1.29 |
| EPS (Diluted) | $1.28 |
| Shares Outstanding (Basic) | 424.40M |
| Shares Outstanding (Diluted) | 429.00M |
Key Highlights
- 1Net income attributable to Deere & Company increased by 16% to $547.5 million ($1.28/share) for the quarter, and 17% to $790.7 million ($1.85/share) for the six-month period.
- 2Worldwide net sales and revenues grew 6% to $7.13 billion for the second quarter and 1% to $11.97 billion for the six months, driven by Equipment Operations.
- 3Construction and Forestry segment sales surged 52% in the quarter and 15% year-to-date, indicating market recovery.
- 4Operating profit for the Equipment Operations saw a substantial increase, rising 60% for the quarter to $1.1 billion.
- 5Financial Services segment net income increased 26% for the quarter and 50% for the six months, driven by improved spreads and lower credit loss provisions.
- 6The company announced a quarterly dividend increase to $0.30 per share, signaling financial health and confidence.
- 7A significant tax charge of $129.5 million ($0.30/share) was recorded due to U.S. healthcare legislation, impacting reported net income.