Summary
Deere & Company reported robust financial performance for the second quarter and first six months of fiscal year 2011, demonstrating significant year-over-year growth across key metrics. Net sales and revenues surged by 25% in the second quarter and 26% for the first six months, driven by strong demand in both the Agriculture & Turf and Construction & Forestry segments. This revenue growth, coupled with improved price realization and higher shipment volumes, translated into substantial increases in operating profit and net income. Net income attributable to Deere & Company more than doubled in both periods, reflecting operational efficiency and a favorable tax environment compared to the prior year. The company's outlook for the full fiscal year 2011 remains optimistic, with projected sales increases of 21-23% and an anticipated net income of approximately $2,650 million. Despite potential headwinds such as global economic uncertainty, commodity price volatility, and supply chain disruptions (including the impact of the Japanese earthquake), Deere & Company is well-positioned due to consistent investment in new products and expanded global capacity. The company also continues to manage its financial services segment effectively, which contributed positively to overall profitability.
Financial Highlights
44 data points| Revenue | $8.91B |
| Cost of Revenue | $6.11B |
| Gross Profit | $2.22B |
| R&D Expenses | $298.50M |
| SG&A Expenses | $828.20M |
| Operating Income | $1.43B |
| Interest Expense | $192.30M |
| Net Income | $904.00M |
| EPS (Basic) | $2.15 |
| EPS (Diluted) | $2.12 |
| Shares Outstanding (Basic) | 420.70M |
| Shares Outstanding (Diluted) | 426.40M |
Key Highlights
- 1Net sales and revenues increased significantly, with a 25% rise in the second quarter and 26% for the first six months of fiscal year 2011, reaching $8.91 billion and $15.03 billion, respectively.
- 2Net income attributable to Deere & Company saw substantial growth, increasing by 65% to $904.3 million ($2.12 per share) in the second quarter and by 79% to $1,418.1 million ($3.32 per share) for the first six months.
- 3The Agriculture and Turf segment experienced a 24% sales increase in Q2 and 23% in the first six months, driven by strong global farm conditions and higher commodity prices.
- 4The Construction and Forestry segment showed even stronger growth, with sales up 46% in Q2 and 61% in the first six months, reflecting improved market conditions and increased activity.
- 5Financial Services segment also performed well, with net income attributable to Deere & Company increasing by 21% in Q2 and 29% year-to-date, driven by portfolio growth and a lower provision for credit losses.
- 6The company raised its full fiscal year 2011 net income forecast to approximately $2,650 million, indicating confidence in continued strong performance.
- 7Deere & Company returned capital to shareholders through dividends and share repurchases, declaring a quarterly dividend of $0.41 per share (a 17% increase) and continuing its share buyback program.