Summary
Deere & Company reported strong financial results for the third quarter and the first nine months of fiscal year 2017. Net income attributable to Deere & Company significantly increased year-over-year for both periods, driven by higher net sales and revenues across its equipment and financial services segments. The agriculture and turf segment, as well as the construction and forestry segment, experienced substantial sales growth, particularly benefiting from increased shipment volumes and price realization. Key drivers of this performance include improved market conditions globally, with a notable uptick in South American agricultural machinery sales and robust growth in construction equipment. The company's strategic focus on an advanced product portfolio and a more efficient cost structure contributed to these positive results. Looking ahead, Deere & Company projects continued sales growth for the full fiscal year 2017, underscoring a positive outlook for the business.
Financial Highlights
45 data points| Revenue | $7.81B |
| Cost of Revenue | $5.25B |
| Gross Profit | $1.58B |
| R&D Expenses | $336.80M |
| SG&A Expenses | $799.10M |
| Operating Expenses | $6.92B |
| Operating Income | $1.00B |
| Interest Expense | $216.30M |
| Net Income | $642.00M |
| EPS (Basic) | $2.00 |
| EPS (Diluted) | $1.97 |
| Shares Outstanding (Basic) | 320.80M |
| Shares Outstanding (Diluted) | 325.10M |
Key Highlights
- 1Net income attributable to Deere & Company surged significantly in Q3 2017 ($641.8M, up from $488.8M in Q3 2016) and for the first nine months ($1,648.8M, up from $1,238.6M in 2016).
- 2Worldwide net sales and revenues increased by 16% in Q3 2017 to $7.8 billion, and by 8% for the nine-month period to $21.7 billion, driven by strong equipment sales.
- 3The Agriculture and Turf segment saw sales rise 13% in Q3 and 5% year-to-date, supported by higher shipment volumes and price realization.
- 4The Construction and Forestry segment experienced a significant 29% sales increase in Q3 and 10% year-to-date, primarily due to higher shipment volumes.
- 5Financial Services reported a slight increase in net income for Q3 2017 ($131.2M vs. $125.9M in Q3 2016), with full-year net income expected around $475 million.
- 6The company is actively pursuing strategic growth, evidenced by the pending acquisition of Wirtgen Group for approximately $5.4 billion, expected to close in early fiscal year 2018.
- 7Deere & Company forecasts full-year fiscal 2017 net sales and revenues to increase by approximately 11% with a projected net income attributable to Deere & Company of about $2,075 million.