Summary
Deere & Company reported a decrease in net sales and net income for the third quarter and the first nine months of fiscal year 2014 compared to the prior year. Net sales for the third quarter declined by 5% to $9.5 billion, with net income attributable to Deere & Company falling to $850.7 million from $996.5 million in the prior year. The decline in sales was primarily driven by lower shipment volumes in the Agriculture and Turf segment, partially offset by growth in Construction and Forestry. Despite overall lower sales, the Financial Services segment showed improved net income due to growth in its credit portfolio. The company's outlook for the full fiscal year 2014 projected a decrease in equipment sales of about 6%, with net income attributable to Deere & Company anticipated to be approximately $3,100 million. Management highlighted moderating conditions in the global farm sector as a key factor impacting demand for farm machinery, while the construction equipment markets showed signs of recovery. Deere & Company continues to focus on navigating global economic uncertainties and meeting stringent emissions regulations.
Financial Highlights
45 data points| Revenue | $9.50B |
| Cost of Revenue | $6.61B |
| Gross Profit | $2.11B |
| R&D Expenses | $362.10M |
| SG&A Expenses | $820.70M |
| Operating Expenses | $8.21B |
| Operating Income | $1.38B |
| Interest Expense | $153.90M |
| Net Income | $851.00M |
| EPS (Basic) | $2.35 |
| EPS (Diluted) | $2.33 |
| Shares Outstanding (Basic) | 361.90M |
| Shares Outstanding (Diluted) | 365.10M |
Key Highlights
- 1Net sales for Q3 FY2014 decreased 5% to $9.5 billion, and for the first nine months decreased 4% to $27.1 billion, compared to the prior year.
- 2Net income attributable to Deere & Company for Q3 FY2014 decreased to $850.7 million ($2.33/share) from $996.5 million ($2.56/share) in Q3 FY2013.
- 3The Agriculture and Turf segment experienced an 11% decrease in sales for the quarter, attributed to lower shipment volumes and divestitures.
- 4The Construction and Forestry segment saw a 19% increase in sales for the quarter, driven by higher shipment volumes and price realization.
- 5Financial Services segment's net income increased for both the quarter and nine-month periods, primarily due to growth in the credit portfolio.
- 6The company expects full-year FY2014 net income to be approximately $3,100 million, with equipment sales projected to decrease by about 6%.
- 7The company repurchased $5.951 billion in common stock during the third quarter under its $8 billion repurchase plan.