In its May/June presentation for investors, Deere & Co. outlined the steps it is taking to reach its goal of doubling its net sales to $50 billion by 2018. Most of this growth will come from growth that will take place outside of North America.

In terms of growing global sales, Deere is expecting most of the increase will come from the BRIC countries of Brazil, Russia, India and China. In 2011, Deere saw its net sales in Central Europe and CIS increase by 89% between 2010 and 2011. Sale to Central and South America grew by 38% and to Asia, Africa and the Middle East by 35% during that period. U.S. sales in 2011 vs. 2010 grew at a rate of about 15%.Deere says the $50 billion goal will require a compounded annual growth rate (CAGR) of about 9% between 2010 and 2018 vs. its historical CAGR of 7-8%. The company indicates that the financial measures it is focusing on includes improving return on sales (operating margins) to 12% by mid-cycle 2014 and increasing asset turns to 2.5x at mid-cycle 2018 compared with its 2010 asset turns of 2.2.

Deere & Co. Net Sales by Major Markets
2011, 2010, 2009, 2008

(in millions of dollars) 2011 2010 % Change 2009 2008
U.S. 15,029 13,026 +15% 11,568 13,166
Canada 2,329 1,767 +32% 1,454 1,902
Western Europe 4,382 3,360 +30% 3,427 4,610
Central Europe & CIS 1,407 746 +90% 749 1,874
Central & South America 3,612 2,623 +38% 1,787 2,577
Asia, Africa & Middle East 1,930 1,431  +35% 1,166 1,062
Asia, Pacific, Australia & New Zealand 777 620 +25% 605 612
Total 29,466 23,573 +25% 20,756 25,803
The John Deere Strategy: Performance Target Aspirations