Director, Global Public Relations
Deere Announces Record Fourth-Quarter Earnings of $807 Million
§ Fourth-quarter income rises 17%; earnings per share up 21%.
§ Full-year earnings reach record $3.54 billion.
§ New products, additional capacity help expand global customer base.
§ Forecast calls for income of $3.3 billion in 2014.
MOLINE, Illinois (November 20, 2013) — Net income attributable to Deere & Company was $806.8 million, or $2.11 per share, for the fourth quarter ended October 31, compared with $687.6 million, or $1.75 per share, for the same period last year.
For fiscal 2013, net income attributable to Deere & Company was $3.537 billion, or $9.09 per share, compared with $3.065 billion, or $7.63 per share, in 2012.
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 and $34.998 billion for the year, compared with $9.047 billion and $33.501 billion for the same periods in 2012.
“With our strong financial results in the fourth quarter, John Deere has wrapped up another year of impressive achievement,” said Samuel R. Allen, chairman and chief executive officer. Income for the periods was higher than in any previous fourth quarter or full year, he pointed out. “During the year, Deere continued with a record number of product introductions and completed seven new factories, in Brazil, Russia, India and China. 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,” Allen stated.
The Chump IRA bought DE three times in May, once in June, once in July, and once in August. Each purchase was a 1/5 position. My average cost stands at $86.02. The FAST Graph below shows a continued undervaluation (black price line), with a fair value target price of around $130 per share (orange PE=15 line).
Reprinted below is a more thorough summary from today's WSJ. It looks like DE and its competitors will face headwinds next year due to falling commodity prices around the globe. DE is definitely a long term play.