SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: May 23, 1995
(Date of earliest event reported)
D E E R E & C O M P A N Y
(Exact name of registrant as specified in charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-4121
(Commission File Number)
36-2382580
(IRS Employer Identification No.)
John Deere Road
Moline, Illinois 61265
(Address of principal executive offices and zip code)
(309)765-8000
(Registrant`s telephone number, including area code)
_______________________________________
(Former name or former address, if changed since last
report.)
Page 1 of 8 pages.
The Exhibit Index appears at Page 3
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits
(99) Press release and additional information.
Signatures
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant
has duly caused this report to be signed on its behalf by the
undersigned hereto
duly authorized.
DEERE & COMPANY
By /s/ Frank S. Cottrell
Frank S. Cottrell, Secretary
Dated: May 23, 1995
EXHIBIT INDEX
Sequential Page
Number and Description of Exhibit
Number
(99) Press release and additional information Pg. 4
EXHIBIT 99
Contact: Robert J. Combs
Deere & Company
309/765-5014
FOR IMMEDIATE RELEASE (May 23, 1995)
MOLINE, ILLINOIS -- Deere & Company today reported record
worldwide
net income of $237.0 million or $2.74 per share in the second
quarter of 1995 compared with $189.3 million or $2.20 per share
last year. This was the highest quarterly net income and
earnings
per share ever reported by the company. The second quarter of
Deere & Company's fiscal year ended April 30.
Worldwide net income improved by $47.7 million or 25 percent
compared with last year's second quarter. Year-to-date net
income
totaled $375.5 million or $4.34 per share compared with $276.3
million or $3.22 per share for the first six months of 1994. The
increased net income for both the quarter and the first six
months
was primarily due to higher sales and production activity and
continued productivity improvements, which were partially offset
by
unfavorable currency fluctuations. Worldwide net sales and
revenues increased 15 percent to $2.840 billion in the second
quarter and 18 percent to $4.946 billion for the first six months
of 1995 compared with $2.460 billion and $4.187 billion,
respectively, last year. Worldwide production tonnage was up
seven
percent in the quarter and nine percent year-to-date compared
with
the same periods last year.
Deere & Company Chairman and Chief Executive Officer, Hans W.
Becherer said, "Our operations continue to be favorably affected
by
several key developments. Market demand for all our products
remains strong, reflecting increased export demand, continued
growth in the general economy and sustained high levels of
farmers'
confidence. Additionally, the company recently signed a new
three-
year labor agreement with the United Auto Workers which
encourages
employee innovation and should generate significant productivity
gains. Further, worldwide customer acceptance of our new medium
and large row crop tractor lines continues to be outstanding."
Net sales to dealers of agricultural, industrial and lawn and
grounds care equipment were $2.453 billion in the second quarter
and $4.183 billion year-to-date in 1995 compared with $2.128
billion for the quarter and $3.535 billion year-to-date a year
ago.
North American net sales of John Deere agricultural, industrial
and
lawn and grounds care equipment all increased during the second
quarter and first six months of 1995 compared with last year.
Exports from the United States also continued to strengthen,
totaling $645 million for the first six months, which was 15
percent higher than last year's export levels of $560 million.
Overseas net sales were also higher, increasing 30 percent in the
first six months compared with a year ago.
The company's worldwide equipment operations, which exclude the
financial services subsidiaries and unconsolidated affiliates,
had
net income of $191.6 million for the quarter and $287.4 million
year-to-date compared with $147.5 million and $195.5 million,
respectively, last year. All of the company's equipment
businesses
generated higher operating profits during the quarter and
year-to-
date compared with last year. The improved results were due
primarily to higher production and sales volumes and continued
improvements in productivity, partially offset by unfavorable
currency fluctuations. Operating profit is defined as income
before interest expense, income taxes and certain other expenses.
Net income of the financial services subsidiaries was $42.4
million
for the quarter and $85.2 million year-to-date compared with
$40.4
million and $79.0 million, respectively, last year. Second
quarter
and year-to-date net income of the credit operations was $34.4
million and $64.1 million, respectively, compared with $28.4
million and $54.0 million for the same periods last year, due
primarily to increased gains on the sale of retail notes and a
larger average portfolio financed. Net income of the insurance
and
health care operations was $8.0 million for the quarter and $21.1
million year-to-date compared with $12.0 million and $25.0
million,
respectively, last year. The quarterly results for the insurance
operations were affected by an expected small net loss from the
recently announced agreement to sell its life insurance
subsidiary.
These operations will continue to focus on core property and
casualty business and the sale will not significantly affect
future
results.
Deere & Company Chairman and Chief Executive Officer Hans W.
Becherer said, "Current North American retail sales activity of
agricultural equipment provides a strong foundation for
operations
during the remainder of the year. Although some uncertainty has
developed as a result of the debate on a new United States farm
bill and extremely wet and cool weather conditions which have
delayed spring planting in many areas, farmers' confidence
remains
high and continues to promote strong agricultural equipment
demand.
Recent high levels of United States net farm cash income continue
to provide a solid base for farm expenditures. Additionally,
higher exports of farm commodities resulting from continued
growth
in demand from developing countries, as well as from China and
the
former Soviet Union, have stabilized commodity prices at levels
which should further improve customer buying confidence. Recent
weakness in the dollar against key foreign currencies has also
improved the worldwide competitiveness of most domestic farm
commodities.
"Markets for the company's other major businesses also remain at
strong levels," Becherer said. "The North American general
economy
has sustained its moderate growth, which should support continued
demand for both industrial and lawn and grounds care equipment as
well as providing a sound basis for expansion of our financial
services revenues.
"In response to these market conditions, the worldwide equipment
operations' production tonnage is expected to increase by six
percent in 1995 compared with 1994," Becherer said. "Third
quarter worldwide production tonnage is expected to be eight
percent higher compared with last year, reflecting continued
strong
retail demand coupled with the excellent acceptance of our new
8000-series tractor line as well as other new products.
"Current demand for our products continues to provide a solid
base
for future operations and our competitive position worldwide
remains very strong," Becherer said. "Our twin focus on
profitable
growth and continuous improvement has resulted in continued
growth
in revenues as well as improved quality, reduced costs and
enhanced
profitability, and should yield important benefits to our company
during the remainder of 1995 and beyond."
# # #
The following is disclosed on behalf of the company's United
States
credit subsidiary, John Deere Capital Corporation, in connection
with the disclosure requirements of programs providing for the
issuance of debt securities:
John Deere Capital Corporation's (Capital Corporation) net income
was $33.3 million in the second quarter and $60.7 million
year-to-
date in 1995 compared with $25.9 million and $48.9 million in the
same periods last year. Net income for both the quarter and the
first six months was favorably affected by increased gains on the
sale of retail notes and a larger average portfolio financed.
The
average balance of credit receivables and leases financed was 16
percent higher in the second quarter and 18 percent higher in the
first six months of 1995 compared with the same periods last
year.
Credit receivable and lease acquisitions increased 15 percent
during the second quarter and 17 percent year-to-date compared
with
a year ago. Acquisitions of John Deere equipment notes were 16
percent higher in the current year, primarily due to increased
retail sales of John Deere equipment. Acquisitions of retail
notes, revolving charge accounts and wholesale receivables all
increased during the first six months of this year compared with
1994. Year-to-date retail notes acquired totaled $1.416 billion,
a 15 percent increase over 1994 acquisitions.
Credit receivables and leases financed by the Capital Corporation
were $3.796 billion at April 30, 1995 compared with
$3.757 billion one year ago. The Capital Corporation securitized
and sold retail notes for which it received proceeds of $1.245
billion during the past 12 months, including $722 million
received
in April 1995. These sales mostly offset the increase in credit
receivables resulting from acquisitions exceeding collections in
the same period. Credit receivables and leases administered,
which
include receivables previously securitized and sold, totaled
$5.294
billion at April 30, 1995 compared with $4.694 billion at April
30,
1994.
# # #
The attached data accompany this press release.
Second Quarter 1995 Press Release
Net sales and revenues:
(millions of dollars)
Three Months Ended Six Months Ended
April 30 April 30
% %
1995 1994 Change 1995 1994 Change
Net sales:
Agricultural equipment 1,434 1,332 + 8 2,456 2,219 +11
Industrial equipment 500 432 +16 908 740 +23
Lawn and grounds
care equipment 519 364 +43 819 576 +42
Total net sales 2,453 2,128 +15 4,183 3,535 +18
Financial Services
revenues 361 309 +17 709 607 +17
Other revenues 26 23 +13 54 45 +20
Total net sales
and revenues 2,840 2,460 +15 4,946 4,187 +18
United States and Canada:
Equipment net sales 1,882 1,663 +13 3,207 2,783 +15
Financial Services
revenues 361 309 +17 709 607 +17
Total 2,243 1,972 +14 3,916 3,390 +16
Overseas net sales 571 465 +23 976 752 +30
Other revenues 26 23 +13 54 45 +20
Total net sales
and revenues 2,840 2,460 +15 4,946 4,187 +18
Selected balance sheet data:
(millions of dollars)
April 30 October 31 April 30
1995 1994 1994
Equipment Operations:
Dealer accounts and notes
receivable - net 3,589 2,939 3,153
Inventories 996 698 746
Financial Services:
Credit receivables and leases
financed - net 4,307 4,511 4,142
Credit receivables and leases
administered - net 5,805 5,725 5,080
Insurance and health care
companies' assets 1,727 1,671 1,561
Average shares outstanding 86,504,910 86,146,147 85,866,844