Deere Completes Record Year With 4Q Earnings of $670 Million

Net income attributable to Deere & Company was $669.6 million for the fourth quarter ended October 31, compared with $457.2 million, for the same period last year. For fiscal 2011, net income attributable to Deere was $2.800 billion, compared with $1.865 billion last year.

Worldwide net sales and revenues increased 20%, to $8.612 billion, for the fourth quarter and were up 23% to $32.013 billion for the full year. Net sales of the equipment operations were $7.903 billion for the quarter and $29.466 billion for full-year 2011, compared with $6.564 billion and $23.573 billion for the corresponding periods last year.

“John Deere has completed another year of exceptional achievement,” said Samuel R. Allen, chairman and chief executive officer. “Our success reflects a continued pattern of strong customer response to our innovative lines of equipment coupled with the skillful execution of business plans aimed at expanding our global competitive position.”

During the year, Deere introduced a record number of products and announced plans for six new factories in China, Brazil and India. “John Deere’s record performance is a further tribute to our operating model, which stresses rigorous cost management and asset efficiency,” Allen stated. “As a result, we are achieving unprecedented financial results and generating healthy levels of cash flow. These dollars are funding growth throughout the world and also are being shared directly with investors in the form of dividends and share repurchases.”

Agriculture and turf sales for the company were up 18% for the quarter and 21% for the year primarily due to higher shipment volumes. Improved price realization and favorable currency translation affected sales for both periods. Construction and forestry sales rose 34% for the quarter and were up 45% for the year mainly due to higher shipment volumes.

In spite of an unsettled global economy, demand for John Deere products is expected to experience substantial growth in fiscal year 2012 and the company is forecasting further increases in sales and earnings as a result. Company equipment sales are projected to increase about 15 percent for the year and to be up 16% to 18% for the first quarter compared with the same periods of 2011. Included is a favorable currency-translation impact of about 3 percent for the quarter and about 1% for the year. For the full year, net income attributable to Deere & Company is anticipated to be approximately $3.2 billion.