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RSSDeere’s Ag & Turf Division Sales Rise 18% for 4Q, 21% for Year
This morning John Deere reported that sale for its Ag & Turf Division were up 18% in the 4Q of its fiscal year and 21% for the entire year
primarily due to higher shipment volumes. Improved price realization and favorable currency translation affected sales for both periods. Operating profit was $868 million for the quarter and $3.447 billion for the year, compared with $662 million and $2.790 billion in 2010. Results were better for both periods largely due to higher shipment volumes and improved price realization. These factors were partially offset by increased raw-material costs, higher manufacturing-overhead costs related to new products, and higher research and development expenses. Additionally, full-year results were negatively affected by increased selling, administrative and general expenses.
Construction and forestry sales rose 34% for the quarter and were up 45% for the year mainly due to higher shipment volumes. The division had operating profit of $87 million for the quarter and $392 million for the year, compared with $54 million and $119 million last year. Operating profit for both periods moved up primarily due to higher shipment and production volumes and improved price realization. These factors were partially offset by increases in raw-material costs and higher research and development expenses. In addition, higher selling, administrative and general expenses had an impact on full-year results.
Source: Deere & Co. press release
