With fourth-quarter income up 46% on a 20% increase in sales and revenues, outdoor power equipment maker Deere & Company had record full-year income of $2.8 billion.
Net income was $669.6 million in 4Q fiscal 2011, ended October 31, compared to $457.2 million in 4Q fiscal 2010. Net income for fiscal year 2011 was $2.800 billion compared to $1.865 billion in fiscal 2010.
Worldwide net sales and revenues in 4Q 2011 increased 20%, to $8.612 billion, and were up 23% to $32.013 billion for the full year.
Net sales of the equipment operations were $7.903 billion for the quarter and $29.466 billion for full-year 2011, compared with $6.564 billion and $23.573 billion for the corresponding periods last year. (Deere's other business segment, Financial Services, had net income of $122.1 million for the quarter and $471.0 million for the year, compared to $98.4 million and $372.5 million, respectively, in 2010.)
"Our success reflects a continued pattern of strong customer response to our innovative lines of equipment coupled with the skillful execution of business plans aimed at expanding our global competitive position," said Samuel R. Allen, chairman and CEO.
During the year, Deere introduced a record number of products and announced plans for six new factories in China, Brazil, and India.
Net sales of the worldwide equipment operations increased 20% for the quarter and 25% for the year. Equipment operations overall reported operating profit of $955 million in 4Q 2011 and $3.839 billion for the year, compared to $716 million and $2.909 billion last year. Equipment operations net income was $552 million for the quarter and $2.329 billion for the year, compared to $357 million and $1.492 billion last year.
Agriculture and Turf equipment – which includes Deere's residential outdoor power equipment products – segment sales were up 18% in 4Q 2011 and up 21% for fiscal 2011. Operating profit was $868 million in 4Q 2011 and $3.447 billion for the year, compared to $662 million and $2.790 billion in 2010.
Worldwide sales of Deere Agriculture & Turf division products are forecast to increase about 15% for fiscal year 2012. Industry sales of turf and utility equipment in the U.S. and Canada are expected to increase slightly in 2012.
Construction and Forestry equipment sales rose 34% for the quarter and were up 45% for the year mainly due to higher shipment volumes, with an operating profit of $87 million for the quarter and $392 million for the year, compared with $54 million and $119 million last year.
Despite the global economy, John Deere believes demand for its products overall will experience substantial growth in 2012 and it is forecasting further increases in sales and earnings. Deere equipment sales are projected to increase about 15% in fiscal year 2012 and to be up 16% to 18% in 1Q 2012. Deere expects its 2012 full year net income to be approximately $3.2 billion.
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