8-KOther Events

DEERE & CO 8-K Report (Nov 7, 2002)

Filed November 7, 2002For Securities:DE

Summary

Deere & Company (DE) issued a current report on November 7, 2002, to announce an upward revision of its fourth-quarter earnings. The company now expects fourth-quarter earnings to be at least $63 million, or $0.26 per share, significantly exceeding prior expectations of breakeven performance. This represents a substantial improvement compared to the same period last year, when Deere reported a net loss. The company also provided an initial outlook for fiscal year 2003, anticipating equipment sales to increase by 8-10%, driven primarily by its agricultural and commercial/consumer equipment segments. Enterprise net income for 2003 is projected to be between $500 million and $600 million.

Key Highlights

  • 1Deere & Company anticipates fourth-quarter earnings to be at least $63 million, or $0.26 per share, exceeding previous breakeven guidance.
  • 2This projected fourth-quarter performance shows a strong rebound from a net loss of $320.1 million in the prior year's fourth quarter.
  • 3The company forecasts full-year 2003 equipment sales to grow by 8-10%.
  • 4Growth in 2003 sales is expected to be led by the agricultural equipment and commercial and consumer equipment divisions.
  • 5Deere is projecting enterprise net income for fiscal year 2003 to range between $500 million and $600 million.
  • 6The full fourth-quarter earnings report, including more detailed 2003 business outlook, is scheduled for release on November 19, 2002.

Frequently Asked Questions

Deere & Company filed this 8-K to provide an update on its expected fourth-quarter earnings, indicating they will be significantly higher than previously anticipated, and to give an initial outlook for fiscal year 2003.

The company expects to report earnings of at least $0.26 per share for the fourth quarter of 2002, a substantial improvement from a net loss of $1.36 per share (or $0.45 per share excluding special items) in the fourth quarter of 2001.

The anticipated 8-10% increase in equipment sales for fiscal year 2003 is expected to come primarily from the agricultural equipment and commercial and consumer equipment operations.

Deere's full fourth-quarter earnings report, which will provide further details on the business outlook for 2003, is scheduled for release on November 19, 2002.