Deere & Co.’s net income for its fiscal fourth quarter ended Oct. 31 was $806.8 million, compared with $687.6 million for the same period a year ago, a 17.3-percent jump. For the full fiscal year of 2013, Deere’s net income was $3.537 billion, compared with $3.065 billion the previous year, a 15.4-percent increase.
Worldwide net sales and revenues decreased 3 percent to $9.451 billion for the fourth quarter and increased 5 percent to $37.795 billion for the full year. Net sales of the equipment operations were $8.624 billion for the quarter, a 4.7-percent year-over-year decline. For the full year, however, net sales of the equipment operations rose 4.6 percent to $34.998 billion.
“During the year, Deere continued with a record number of product introductions and completed seven new factories in Brazil, Russia, India and China,” said Samuel Allen, chairman and CEO. “These products and additional capacity are essential to helping the company expand its global customer base and realize its long-term business objectives. Deere’s performance is a testament to our ability to execute our business plans, which stress the rigorous management of costs and assets. This has led to an all-time high in profitability, as measured by operating return on operating assets, and record earnings for the last three years. In addition, the company has delivered healthy levels of cash flow, which has been used to fund global growth programs and provide direct benefit to investors through dividends and share repurchases.”
Deere projects about a 3-percent decrease in equipment sales in fiscal 2014, expecting net income to be about $3.3 billion. However, Allen said the company is in a strong position to carry out its wide-ranging growth plans and attract new customers throughout the world.
Deere’s Construction and Forestry division’s sales decreased 8 percent in the fourth quarter and full year as a result of lower shipment volumes, partially offset by price realization. Operating profit was $118 million for the fourth quarter and $378 million for the year, compared with $120 million and $476 million in 2012.
