Summary
Deere & Company's (DE) first quarter of fiscal year 2011 filing shows a significant rebound in financial performance compared to the prior year. Net income attributable to the company more than doubled, driven by a substantial increase in net sales and revenues across all segments, particularly in Agriculture and Turf, and Construction and Forestry. This growth reflects improving demand for agricultural and construction equipment. The company also saw robust performance in its Financial Services segment, with increased net income attributed to portfolio growth and a lower provision for credit losses. Despite positive sales trends, the company faces ongoing concerns regarding the global economic recovery, credit market conditions, and regulatory changes like the Dodd-Frank Act. However, Deere & Company ended the quarter with a strong financial position, increased stockholders' equity, and solid liquidity, positioning it to capitalize on anticipated positive global economic trends for the remainder of fiscal year 2011, with a projected net income of approximately $2.5 billion.
Financial Highlights
44 data points| Revenue | $6.12B |
| Cost of Revenue | $4.09B |
| Gross Profit | $1.42B |
| R&D Expenses | $268.90M |
| SG&A Expenses | $665.00M |
| Operating Income | $818.00M |
| Interest Expense | $202.50M |
| Net Income | $514.00M |
| EPS (Basic) | $1.22 |
| EPS (Diluted) | $1.20 |
| Shares Outstanding (Basic) | 421.80M |
| Shares Outstanding (Diluted) | 427.50M |
Key Highlights
- 1Net income attributable to Deere & Company surged to $513.7 million ($1.20 per share) in Q1 2011, more than double the $243.2 million ($0.57 per share) reported in Q1 2010.
- 2Worldwide net sales and revenues increased by a robust 27% to $6,119 million, driven by a 30% rise in equipment segment net sales to $5,514 million.
- 3The Agriculture and Turf segment saw sales climb 21% and operating profit jump 59%, while Construction and Forestry sales surged 81% and moved from an operating loss to a significant profit.
- 4Financial Services segment operating profit increased by 70% to $172 million, benefiting from portfolio growth and a lower provision for credit losses.
- 5The company's balance sheet strengthened, with total stockholders' equity increasing to $6,586.7 million from $4,986.0 million in the prior year period.
- 6Deere & Company's outlook remains positive, with projected equipment sales up 18-20% for fiscal year 2011 and anticipated net income of approximately $2.5 billion for the full year.
- 7The company repurchased $302 million of its common stock during the quarter, alongside paying $127 million in dividends.