Summary
Deere & Company's (DE) third quarter and nine-month results for the period ending July 31, 2010, show a significant rebound in performance compared to the previous year, driven by strong sales growth in its core equipment operations. Net income attributable to Deere & Company surged, with diluted earnings per share increasing substantially. The company's Agriculture and Turf segment experienced robust sales growth, bolstered by favorable market conditions in North America and South America. The Construction and Forestry segment also demonstrated a remarkable turnaround, with sales and operating profit shifting from a loss in the prior year to a profit. Financial Services also contributed positively with improved financing spreads and a lower provision for credit losses. Looking ahead, Deere & Company anticipates continued sales growth for the full fiscal year 2010, driven by strength in agriculture and construction markets, though with regional variations. The company maintains a cautious outlook regarding global economic conditions but expresses confidence in its liquidity and funding sources to meet its obligations.
Financial Highlights
43 data points| Revenue | $6.84B |
| Cost of Revenue | $4.52B |
| Gross Profit | $1.70B |
| R&D Expenses | $256.30M |
| SG&A Expenses | $751.20M |
| Operating Income | $1.04B |
| Interest Expense | $193.10M |
| Net Income | $617.00M |
| EPS (Basic) | $1.45 |
| EPS (Diluted) | $1.44 |
| Shares Outstanding (Basic) | 424.50M |
| Shares Outstanding (Diluted) | 429.00M |
Key Highlights
- 1Net income attributable to Deere & Company for the third quarter was $617.0 million, a significant increase from $420.0 million in the prior year's comparable period.
- 2Diluted earnings per share rose to $1.44 for the third quarter, up from $0.99 in the prior year, indicating improved profitability on a per-share basis.
- 3Worldwide net sales and revenues increased by 16% to $6,837 million in the third quarter, driven by an 18% increase in Net sales from Equipment Operations.
- 4The Construction and Forestry segment showed a strong turnaround, with operating profit improving from a loss of $28 million in the prior year's third quarter to a profit of $66 million in the current quarter.
- 5Financial Services reported an increase in operating profit to $138 million for the third quarter, driven by improved financing spreads and a lower provision for credit losses.
- 6The company forecasts full-year 2010 equipment sales to increase by approximately 12%, with a particular strength expected in the fourth quarter.
- 7Deere & Company maintained a stable credit rating with a 'Stable' outlook from both Moody's and Standard & Poor's.