Deere records record profit

News Deere & Co. November 23, 2004
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Deere & Co

Deere & Co., Moline, Ill., announced a worldwide net income of $356.7 million for the fourth quarter ended Oct. 31. Net income for the same period last year was $70.6 million. For the full year, net income was $1.406 billion versus $643.1 million in 2003.


Worldwide net sales and revenues grew 32% to $5.207 billion for the fourth quarter, and increased 29% to $19.986 billion for the year. Net sales of the equipment operations were $4.612 billion for the quarter and $17.673 billion for the year, compared with $3.375 billion and $13.349 billion for the periods last year.


Stronger market conditions, combined with a focus on building a better business, have been responsible for much of the company's success this year, said Robert W. Lane, chairman and CEO of Deere & Co. "We are winning new customers with exceptional products and services, while producing the kind of financial results that will reward investors over the long run."


The company's equipment divisions generated higher sales for both the quarter and full year primarily due to increased shipments. Equipment sales in the U.S. and Canada rose 39% for the quarter and 33% for the year. Outside the U.S. and Canada, sales increased by 25% for the quarter and 20% for the year.


Company equipment sales for 2005 are expected to increase by 2-7% with net income forecast to be around $1.5 billion. First-quarter equipment sales are currently forecast to be up 20-25% in comparison with the same period last year. Production levels are expected to increase by 11-13% for the quarter. Consolidated net income for first-quarter 2005 is forecast to be in a range of $200 million to $225 million.


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