- Income reaches record for quarter on 35% gain in net sales and revenues.
- Improvement broad-based with all divisions reporting significantly higher results.
- Performance reflects disciplined execution and sharpened strategic focus.
- Earnings of approximately $2.1 billion forecast for 2011.
Net income attributable to Deere & Company was $457.2 million, or $1.07 per share, for the fourth quarter ended October 31, compared with a net loss of $222.8 million, or $0.53 per share, for the same period last year. (More financial highlights available in PDF format.)
Fourth-quarter 2009 earnings were $99.0 million, or $0.23 per share, excluding the impairment of goodwill related to the John Deere Landscapes reporting unit and voluntary employee-separation expenses associated with the formation of the agriculture and turf division. These charges totaled $364.8 million pretax and $321.8 million after-tax, or $0.76 per share, and are included in results of the agriculture and turf operating segment. (Information on non-GAAP financial measures is included in the appendix.)
For fiscal 2010, net income attributable to Deere & Company was $1.865 billion, or $4.35 per share, compared with $873.5 million, or $2.06 per share, last year. Included in the 2009 results were the items cited above, which totaled $380.6 million pretax and $331.8 million after-tax, or $0.78 per share.
Worldwide net sales and revenues for the fourth quarter increased 35 percent, to $7.202 billion, and were up 13 percent, to $26.005 billion, for the full year. Net sales of the equipment operations were $6.564 billion for the quarter and $23.573 billion for full-year 2010, compared with $4.726 billion and $20.756 billion in the prior year.
"John Deere's strong performance for the quarter and full year reflects a disciplined approach to executing our business plans and was achieved despite continuing weakness in certain regions and business sectors," said Samuel R. Allen, chairman and chief executive officer. "Although conditions continued to be positive in the U.S. farm sector, and included a highly favorable sales mix of larger equipment, European agricultural markets remained soft. Deere's construction equipment sales benefited from somewhat-stronger overall demand but remained far below normal levels."