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Released November 21, 2013 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Deere & Company (NYSE:DE) (Moline, Illinois), a leading agricultural, construction and forestry equipment manufacturer, reported solid overall gains for the 2013 fiscal year, as prices and shipment volumes strengthened in the Agriculture & Turf segment. Net income was reported to be $807 million for the fourth quarter, a 17.3% increase from fiscal fourth-quarter 2012, and $3.54 billion for the fiscal year, a 15.4% increase from fiscal 2012.
Total net sales and revenues stood at $9.45 billion for the fourth quarter, a 3.48% decrease from the same period last year, and $37.8 billion for the fiscal year, a 4.53% increase from fiscal 2012. Although domestic and international equipment sales were slightly down for the quarter, they increased 5% and 4%, respectively, for the year. The gains were led by the Agriculture & Turf segment, which benefited from price realization and higher shipment volumes. This helped to offset the lower shipment volumes and a less favorable product mix in the Construction & Forestry segment.
Capital expenditures for the full 2013 fiscal year were reported to be $1.2 billion. The company saw a record number of product introductions during the year and finished construction on seven new factories in China, India, Russia and Brazil.
Industrial Info is tracking $153 million in active projects involving Deere, including $58 million in additions at an excavator manufacturing plant in Kernersville, North Carolina. The project involves constructing a 250,000-square-foot plant and installing production and supporting equipment to manufacture additional excavators for the mining and construction industries. Frank L. Blum Construction Company (Winston-Salem, North Carolina) is serving as the general contractor.
"In September, Deere completed its purchase of Bauer Built Manufacturing Incorporated, allowing us to leverage our growing dealer network, manufacturing capabilities, and management skills to continue growing this business," said Susan Karlix, the manager of investor communications for Deere. "Bauer has manufactured co-branded planters with Deere since 2002, under a design and manufacturing partnership.
"We have seen demand for the Deere-Bauer series grow quickly in the last few years, predominantly in North America. Going forward, not only do we anticipate further market growth in North America, but we see a lot of potential in Brazil and Argentina, where large farms demand highly productive machines such as these."
Deere executives expect capital expenditures for fiscal 2014 to be about $1.2 billion. Net income is expected to be about $3.3 billion. Equipment sales are expected to decline about 3% for the full year and 2% for the first quarter. The company also expects to sell off about 60% of its John Deere Landscapes business.
In the Agriculture & Turf segment, worldwide equipment sales are expected to decrease 6% in full-year 2014, as declines in commodity prices and farm incomes are expected to weigh on demand, particularly for large farm equipment such as high-horsepower tractors and combines. Asia is the only region expected to see higher sales in the Agriculture & Turf segment.
"While remaining near long-term averages, grain prices and farm income [in the European Union] are expected to be lower in 2014," Karlix said. "While it appears that short-term economic stress has diminished for now, concerns over slow European Union growth are weighing on farmer confidence. As a result, farm machinery demand is expected to be lower in 2014."
For more information, visit Industrial Info's North American Industrial Manufacturing Project Database.
View Plant Profile - 3075260
View Project Report - 300094971
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Total net sales and revenues stood at $9.45 billion for the fourth quarter, a 3.48% decrease from the same period last year, and $37.8 billion for the fiscal year, a 4.53% increase from fiscal 2012. Although domestic and international equipment sales were slightly down for the quarter, they increased 5% and 4%, respectively, for the year. The gains were led by the Agriculture & Turf segment, which benefited from price realization and higher shipment volumes. This helped to offset the lower shipment volumes and a less favorable product mix in the Construction & Forestry segment.
Capital expenditures for the full 2013 fiscal year were reported to be $1.2 billion. The company saw a record number of product introductions during the year and finished construction on seven new factories in China, India, Russia and Brazil.
Industrial Info is tracking $153 million in active projects involving Deere, including $58 million in additions at an excavator manufacturing plant in Kernersville, North Carolina. The project involves constructing a 250,000-square-foot plant and installing production and supporting equipment to manufacture additional excavators for the mining and construction industries. Frank L. Blum Construction Company (Winston-Salem, North Carolina) is serving as the general contractor.
"In September, Deere completed its purchase of Bauer Built Manufacturing Incorporated, allowing us to leverage our growing dealer network, manufacturing capabilities, and management skills to continue growing this business," said Susan Karlix, the manager of investor communications for Deere. "Bauer has manufactured co-branded planters with Deere since 2002, under a design and manufacturing partnership.
"We have seen demand for the Deere-Bauer series grow quickly in the last few years, predominantly in North America. Going forward, not only do we anticipate further market growth in North America, but we see a lot of potential in Brazil and Argentina, where large farms demand highly productive machines such as these."
Deere executives expect capital expenditures for fiscal 2014 to be about $1.2 billion. Net income is expected to be about $3.3 billion. Equipment sales are expected to decline about 3% for the full year and 2% for the first quarter. The company also expects to sell off about 60% of its John Deere Landscapes business.
In the Agriculture & Turf segment, worldwide equipment sales are expected to decrease 6% in full-year 2014, as declines in commodity prices and farm incomes are expected to weigh on demand, particularly for large farm equipment such as high-horsepower tractors and combines. Asia is the only region expected to see higher sales in the Agriculture & Turf segment.
"While remaining near long-term averages, grain prices and farm income [in the European Union] are expected to be lower in 2014," Karlix said. "While it appears that short-term economic stress has diminished for now, concerns over slow European Union growth are weighing on farmer confidence. As a result, farm machinery demand is expected to be lower in 2014."
For more information, visit Industrial Info's North American Industrial Manufacturing Project Database.
View Plant Profile - 3075260
View Project Report - 300094971
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
