Moline, Illinois, United States: Deere & Company have reported net income of US$784.8 million for the fourth quarter ended October 28, or US$2.42 per share, compared with net income of US$510.3 million, or US$1.57 per share, for the quarter ended October 29, 2017.
For fiscal 2018, net income attributable to Deere & Company was US$2.368 billion, or US$7.24 per share, compared with US$2.159 billion, or US$6.68 per share, in 2017.
Affecting results for the fourth quarter and full year of 2018 were adjustments to the provision for income taxes due to the enactment of US tax reform legislation on December 22, 2017 (tax reform).
Fourth-quarter results included a favourable net adjustment to income taxes of US$37 million, while the full year reflected an unfavourable net income tax expense of US$704 million. Without these adjustments, net income attributable to Deere & Company for the fourth quarter and full year would have been US$748 million, or US$2.30 per share, and US$3.073 billion, or US$9.39 per share, respectively.
Worldwide net sales and revenues increased 17 per cent, to US$9.416 billion, for the fourth quarter and rose 26 per cent, to US$37.358 billion, for the full year. Net sales of the equipment operations were US$8.343 billion for the quarter and US$33.351 billion for the year, compared with respective totals of US$7.094 billion and US$25.885 billion in 2017.
“John Deere has concluded another solid year in which the company benefited from a further improvement in market conditions and a favourable customer response to its line-up of advanced products,” said Samuel R. Allen, Chairman and Chief Executive Officer at John Deere, an Executive Member of the Asian Golf Industry Federation.
“In the fourth quarter, farm machinery sales in the Americas made further gains while construction-equipment sales continued to move higher, helped in part by our Wirtgen road-building business, whose financial contribution has exceeded our original forecasts. At the same time, the company has continued to face cost pressures for raw materials such as steel, which are being addressed through pricing actions and on-going cost management.”
Added Allen: “The company’s strong performance has allowed for significant investment in new products, services, and technologies. In addition, the company in 2018 returned almost US$1.8 billion to shareholders in higher dividends and the repurchase of over US$900 million of stock. These steps reflect the strength of the company and our optimism about its future prospects.”