Deere Q4 Profit Rises Despite Revenue Decline

(RTTNews) - Agricultural machinery maker Deere & Co. (DE) Wednesday said profit for the fourth quarter increased from the prior year, even as revenues saw a slight decline. Income for the quarter and full year was higher than in any previous fourth quarter or full year, the firm noted. The stock added nearly 4 percent in pre-market trading.

Net income attributable to the company increased to $806.8 million or $2.11 per share from $687.6 million or $1.75 per share for the same period last year. On average, 20 analysts polled by Thomson Reuters expected earnings per share of $1.89 for the quarter. Analysts' estimates typically exclude one-time items.

Total net sales and revenues dropped 3 percent to $9.451 billion from $9.792 billion in the prior year.

Total net sales slid 5 percent to $8.624 billion and Financial services revenue jumped 10 percent to $699 million. Analysts estimated revenues of $8.68 billion for the quarter.

Agriculture and turf revenues slid 4 percent to $7.102 billion, primarily due to lower shipment volumes and the unfavorable effects of currency translation, partially offset by price realization.

Construction and forestry revenues were 8 percent lower at $1.522 billion, as a result of lower shipment volumes, partially offset by price realization.

For the full year, net income attributable to the company climbed 15 percent to $3.537 billion while total net sales advanced 4 percent to $34.998 billion.

Samuel Allen, CEO, said, "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.'' Looking ahead, net income attributable to the company for fiscal 2014 is expected to be about $3.3 billion. The outlook contemplates the sale of 60 percent of John Deere Landscapes operations, as announced earlier.

Company equipment sales are projected to decrease about 3 percent for fiscal 2014 and drop about 2 percent for the first quarter.

Deere's worldwide sales of agriculture and turf equipment are forecast to decrease by about 6 percent for 2014 while construction and forestry equipment are forecast to increase by about 10 percent. DE, which closed down 1 percent at $82.81 on Tuesday, gained 3.9 percent in pre-market trading and is at $86.