Summary
Deere & Company (DE) reported a decrease in net sales and revenues for the first quarter of fiscal year 2016, ending January 31, 2016. Total net sales and revenues were $5.525 billion, a decline of 13% compared to $6.383 billion in the same period of the prior year. This downturn was primarily driven by lower sales volumes across both the Agriculture and Turf segment (-12%) and the Construction and Forestry segment (-23%), impacted by challenging agricultural and construction markets globally, including unfavorable currency translation effects. Despite the revenue decrease, the company managed expenses, leading to net income attributable to Deere & Company of $254.4 million, or $0.80 per diluted share, down from $386.8 million, or $1.12 per diluted share, in the prior year's first quarter. The financial services segment also experienced a decrease in net income, attributed to less favorable financing spreads, higher residual value losses, and an increased provision for credit losses, partially offset by reduced operating expenses. The company anticipates full-year fiscal 2016 net income to be approximately $1,300 million, reflecting ongoing market challenges but also highlighting a perceived durability in its business model with diverse revenue streams. Deere & Company continues to navigate a complex economic environment, with a focus on innovation and technology to drive future value.
Financial Highlights
45 data points| Revenue | $5.53B |
| Cost of Revenue | $3.84B |
| Gross Profit | $929.00M |
| R&D Expenses | $319.30M |
| SG&A Expenses | $592.90M |
| Operating Expenses | $5.17B |
| Operating Income | $408.00M |
| Interest Expense | $173.20M |
| Net Income | $254.00M |
| EPS (Basic) | $0.80 |
| EPS (Diluted) | $0.80 |
| Shares Outstanding (Basic) | 316.40M |
| Shares Outstanding (Diluted) | 317.60M |
Key Highlights
- 1Net sales and revenues decreased by 13% to $5.525 billion for the first quarter of fiscal year 2016, compared to $6.383 billion in the prior year period.
- 2Net income attributable to Deere & Company was $254.4 million ($0.80 per diluted share), down from $386.8 million ($1.12 per diluted share) in the same period last year.
- 3Worldwide equipment net sales declined by 15% to $4.769 billion, with Agriculture and Turf sales down 12% and Construction and Forestry sales down 23%.
- 4The Financial Services segment's net income attributable to Deere & Company was $129.4 million, a decrease from $156.8 million in the prior year.
- 5Operating profit for the equipment operations decreased to $214 million from $414 million year-over-year, impacted by lower shipment volumes and unfavorable currency effects.
- 6The company forecasts full-year fiscal 2016 net income to be approximately $1,300 million, indicating an expectation of recovery in later quarters.
- 7The company maintained a strong balance sheet with total assets of $56.04 billion and total liabilities of $49.43 billion as of January 31, 2016.