Summary
Deere & Company reported solid financial results for the first quarter ended January 31, 2014. Net income attributable to the company increased by approximately 4.9% to $681.1 million, or $1.81 per diluted share, compared to $649.7 million, or $1.65 per diluted share, in the prior year's quarter. This growth was driven by a 3% increase in total net sales and revenues, reaching $7,654 million, with the equipment operations seeing a 2% rise and financial services revenues up by 11%. Despite a general forecast for moderating agricultural machinery sales in key markets, Deere's diversified business segments, particularly construction and forestry, showed robust growth. The company demonstrated prudent financial management, with a strong focus on managing costs and maintaining liquidity, as evidenced by positive operating cash flows from investing activities and significant credit facilities.
Financial Highlights
44 data points| Revenue | $7.65B |
| Cost of Revenue | $5.20B |
| Gross Profit | $1.75B |
| R&D Expenses | $323.70M |
| SG&A Expenses | $765.90M |
| Operating Expenses | $6.69B |
| Operating Income | $1.07B |
| Interest Expense | $171.70M |
| Net Income | $681.00M |
| EPS (Basic) | $1.83 |
| EPS (Diluted) | $1.81 |
| Shares Outstanding (Basic) | 371.90M |
| Shares Outstanding (Diluted) | 375.40M |
Key Highlights
- 1Net income attributable to Deere & Company increased by 4.9% to $681.1 million ($1.81/share) for the quarter, up from $649.7 million ($1.65/share) in the prior year.
- 2Worldwide net sales and revenues grew by 3% to $7,654 million, driven by a 2% increase in equipment sales and an 11% increase in financial services revenues.
- 3The Agriculture and Turf segment sales increased by 2%, with operating profit up 4%, while Construction and Forestry segment sales rose by 4% and operating profit saw a significant 32% increase.
- 4Financial Services reported an 11% revenue increase and a 7% rise in net income to $142.2 million, driven by portfolio growth.
- 5Deere maintained a strong liquidity position, with cash and cash equivalents and marketable securities totaling $4,627 million, and significant unused credit facilities.
- 6The company repurchased approximately $477 million of its common stock during the quarter, reflecting a commitment to shareholder returns.
- 7An impairment charge of $26.3 million was recognized for the John Deere Water operations, which are being evaluated for strategic options.