North America Sparks Deere’s Double-Digit Hikes in Q4 and Full Year

Deere & Company posted $9.792 billion in worldwide net sales and revenues for the fiscal fourth quarter, a 14-percent increase over the previous year’s fourth quarter. It totaled $36.157 billion for the full year, a 13-percent year-over-year jump. For fiscal 2012, net income attributable to Deere & Co. was $3.065 billion, or $7.63 per share, compared with $2.8 billion or $6.63 per share in 2011. Equipment net sales in the United States and Canada increased 26 percent for the quarter and 20 percent for the year. Outside the U.S. and Canada, net sales decreased 2 percent for the quarter and increased 5 percent for the year.

During the year, Deere continued to introduce new products, while opening or moving ahead with new factories in China, India and Brazil. In the United States, the company announced capacity expansions for tractors, sprayers and cylinders.

“In the face of continuing global economic pressure, John Deere has completed another record year,” said Samuel Allen, chairman and CEO. “Our success reflects positive customer response to our lines of innovative equipment coupled with extensive efforts to expand our global competitive positions. John Deere’s performance illustrates the continuing impact of our operating model, which stresses a disciplined approach to cost and asset management. As a result, we are achieving strong financial results and generating high levels of cash flow. These dollars are funding growth activities throughout the world and providing value directly to investors.”

Net sales of the worldwide equipment operations increased 14 percent for the fourth quarter and full year compared with the same periods in 2011. Sales included price realization of 4 percent and an unfavorable currency-translation effect of 3 percent in both periods.

Deere expects equipment sales to increase by about 5 percent for the full year of 2013 and jump about 10 percent for the fiscal first quarter compared with the same periods in 2012. The company expects net income for fiscal 2013 to be about $3.2 billion.

“Deere remains well-positioned to carry out its growth plans and capitalize on positive long-term trends, even though present global economic and fiscal concerns warrant continued caution,” Allen added. “We are proud of the company’s performance in 2012 and look forward to building on these gains in 2013 and beyond. Despite fragile economic conditions in many regions, we have great confidence in the company’s prospects and in our ability to deliver value to investors and other stakeholders in the future.”

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