Deere 4th Quarter Earnings Jumped 46 percent Beating Estimates ¨C NYSE:DE

For the fourth quarter ended October 31, net income attributable to Deere & Company?was $669.6 million, or $1.62 per share compared with $457.2 million, or $1.07 per share, for the same period last year.

For fiscal 2011, net income of Deere & Company was $2.800 billion, or $6.63 per share, compared with $1.865 billion, or $4.35 per share, last year.

Worldwide net sales and revenues boosted 20 percent, to $8.612 billion, for the fourth quarter and moved up 23 percent to $32.013 billion for the full year. For the quarter, Net sales of the equipment operations were $7.903 billion and $29.466 billion for full-year 2011, compared with $6.564 billion and $23.573 billion for the corresponding periods last year.

During the year, Deere brought in a record number of products and declared plans for six new factories, in China, Brazil and India. “John Deere’s record performance is a further tribute to our operating model, which stresses rigorous cost management and asset efficiency,” Allen stated. “As a result, we are achieving unprecedented financial results and generating healthy levels of cash flow. These dollars are funding growth throughout the world and also are being shared directly with investors in the form of dividends and share repurchases.”

Net sales of the international equipment operations mounted 20 percent for the quarter and 25 percent for the year. Sales incorporated a positive currency-translation consequence of 2 percent for the quarter and 3 percent for the year and price increases of 3 percent for both periods. Equipment net sales in the United States and Canada surged 14 percent for the quarter and 17 percent for the year. Outside the U.S. and Canada, net sales reported the gain of 31 percent and 38 percent for the respective periods, with encouraging currency-translation effects of 4 percent and 7 percent.

Deere’s equipment operations accounted operating profit of $955 million for th! e quarte r and $3.839 billion for the year, compared with $716 million and $2.909 billion last year. Results were improved for both periods mainly due to higher consignment volumes and perked up price comprehension. These factors were offset to some extent by augmented raw-material costs, higher manufacturing-overhead costs related to new products, and higher research and growth expenses. In addition, full-year results were impacted by higher selling, administrative and general expenses.

Net income of the company’s equipment operations was $552 million for the quarter and $2.329 billion for the year, compared with $357 million and $1.492 billion last year. The same operating features stated above, along with a lower effectual tax rate, influenced both the quarterly and annual results.

Financial services reported net income of $122.1 million for the quarter and $471.0 million for the year compared with $98.4 million and $372.5 million last year. Results for both periods advantage from increase in the credit selection and a inferior stipulation for credit losses, moderately counterbalance by narrower financing spreads and a higher effective tax rate. Included in 2010 fourth-quarter results was a write-down of wind-energy assets held for sale to fair value.

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