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: February 22, 1994
(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 11 pages.
The Exhibit Index appears at Page 3<PAGE>
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: February 22, 1994
<PAGE>
EXHIBIT INDEX
Number and Description Sequential Page
of Exhibit Number
(99) Press release and additional information Pg. 4
<PAGE>
EXHIBIT 99
Contact: Robert J. Combs
Deere & Company
309/765-5014
FOR IMMEDIATE RELEASE (22 February 1994)
MOLINE, ILLINOIS - Deere & Company today reported
net income of $87.0
million or $1.02 per share in the first quarter of its
1994 fiscal year, compared with a
loss before the cumulative effect of changes in
accounting of $36.9 million or $.48 per
share in the first quarter of 1993. The first quarter
of Deere & Company's fiscal year
ended January 31.
Worldwide net sales and revenues increased 21
percent to $1.727 billion in the first
quarter of 1994 from $1.424 billion last year.
The $123.9 million improvement in income compared
with the first quarter of last
year was due primarily to significantly higher 1994
production and sales volumes. Total
worldwide production tonnage was 25 percent higher
than in last year's first quarter,
when several of the company's factories scheduled
additional production shutdowns
along with the normal holiday shutdowns. In addition,
income this year benefited from
lower operating expenses and improved productivity in
both the North American and
overseas operations.
Deere & Company's 1993 first quarter results were
restated for accounting changes
relating to Financial Accounting Standards Board
(FASB) Statement No. 106,
Employers' Accounting for Postretirement Benefits
Other Than Pensions, and FASB
Statement No. 112, Employers' Accounting for
Postemployment Benefits, which were
adopted in the fourth quarter of 1993, effective
retroactively to November 1, 1992.
After the cumulative effect of these changes, the net
loss for the first quarter of 1993
was $1.142 billion or $14.78 per share.
Deere & Company Chairman and Chief Executive
Officer Hans W. Becherer said,
"In response to strong retail demand, we have recently
increased production schedules
in each of our North American equipment operations.
As a result, 1994 worldwide
production tonnage is now anticipated to be about 13
percent higher than 1993 output,
which brings our production schedules up to the level
of expected retail demand.
Worldwide agricultural equipment production tonnage is
expected to be up
approximately 10 percent from last year, when dealer
receivables were reduced by $146
million. Lawn and grounds care equipment and
industrial equipment production
schedules are each anticipated to be up 19 percent
compared with a year ago.
Worldwide production during the final three quarters
of 1994 is scheduled to be up
about 10 percent from output in the same period last
year."
Net sales of equipment increased 26 percent and
were $1.407 billion in the current
quarter compared with $1.115 billion in the first
quarter of last year. Company
inventories and dealers' receivables totaled $3.415
billion, approximately equal to first
quarter 1993 levels when receivables had been
substantially reduced to facilitate
improved asset utilization. Financial services
revenues totaled $298 million in the first
quarter of 1994 compared with $281 million last year.
"Retail sales of John Deere agricultural equipment
in North America were higher
than first quarter 1993 levels, due to continued
strong retail demand," Becherer said.
"North American retail sales of our lawn and grounds
care equipment increased
significantly compared with the same period last year,
reflecting the continued recovery
in the general economy. North American industrial
equipment retail sales were also
up substantially for the quarter, resulting from
continued increases in residential and
public construction activity. Overseas industry
retail demand for agricultural equipment
continued to be relatively weak. However, overseas
retail sales of John Deere
equipment continued to outperform the industry,"
Becherer said.
Net income of the equipment operations totaled
$48.0 million for the first quarter
of 1994 compared with a net loss, excluding accounting
changes, of $78.0 million
incurred during the same period last year. All of the
company's equipment businesses
reported earnings improvements during the quarter.
The North American agricultural
equipment operations generated a strong operating
profit compared with the operating
loss incurred last year, primarily as a result of
substantially higher production and sales
volumes coupled with continued improvements in
operating efficiency. The North
American lawn and grounds care operations generated a
comparable operating profit
for the quarter compared with last year, and the North
American industrial equipment
operations had an operating profit for the quarter
compared with an operating loss
incurred during the same period last year. Higher
production and sales volumes
combined with lower operating costs were the major
factors contributing to the
industrial equipment division's earnings improvement.
The company's overseas
operations had a small operating profit during the
first quarter of 1994 compared with
a large operating loss last year, as operating costs
were substantially lower while
production volume was slightly higher than last year.
Operating profit is defined as
income before interest expense, income taxes and
certain other expenses.
Financial services' net income was $38.6 million
for the first quarter of 1994
compared with $40.9 million for the same period last
year excluding the cumulative
effect of accounting changes. Net income of the
credit operations was $25.6 million for
the first quarter of 1994, down from $30.8 million
last year excluding accounting
changes. The change in income primarily reflects
lower revenues from a smaller
receivable and lease portfolio caused mainly by the
sale of retail notes in 1993, which
was partially offset by higher securitization and
servicing fee income from notes
previously sold but still administered. Net income
from insurance and health care
operations was $13.0 million in the first quarter of
1994 compared with $10.1 million
excluding the accounting changes for the same period
last year, reflecting continued
profitable growth of those businesses.
"First quarter North American retail sales provide
a strong base for operations
during the remainder of the year," Becherer said.
"Despite weather-related shortfalls
of corn and soybean production, United States farm net
cash income is forecasted to
have achieved record levels in 1993. Due to the lower
1993 production and the
resulting reduction in carryover stocks, a substantial
increase in planted acreage of corn
and soybeans should occur in 1994. While farm income
will likely be lower in 1994 due
mainly to lower livestock cash receipts, farm net cash
income is still expected to be one
of the highest in history. Additionally, early
customer buying patterns are showing
continued strengthening in demand for our products.
These developments are currently
anticipated to result in an improved outlook for North
American industry retail sales
of agricultural equipment in 1994, assuming a return
to more normal weather patterns
and continuing low levels of interest rates.
"The European agricultural industry remains in the
midst of fundamental change
due to revisions to government agricultural policies,"
Becherer said. "Although the
long-term downward trend of European industry retail
sales of agricultural equipment
is expected to continue, the current outlook for 1994
is that retail sales will approximate
1993 levels," Becherer said.
"The North American economy is expected to continue
its recovery in 1994,"
Becherer said. "While factors including tax
increases, government spending reductions,
downsizing of the defense industry and recessionary
conditions prevalent with many of
the country's trading partners may limit general
growth prospects, the lowest mortgage
interest rates since the 1970's should continue to
stimulate housing starts and consumer
durable expenditures this year. Public construction
expenditures should also experience
moderate real growth, particularly in street, highway,
bridge and sewer projects. Such
developments should favorably affect the demand for
industrial and construction
equipment. Lawn and grounds care equipment is also
expected to benefit from
continued general economic growth and higher housing
starts.
"The outlook for all of our businesses remains
positive and results of the company's
equipment operations are expected to continue to
improve significantly in 1994,"
Becherer said. "Our new products continue to be well
received, and our competitive
position worldwide remains strong as we continue to
emphasize total quality and
enhanced
productivity."
The following information is disclosed on behalf of
the company's 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 net income was $23.0
million in the first quarter
of 1994 compared with $27.4 million in the same period
last year excluding the
cumulative effect of accounting changes ($23.6
million after the accounting changes).
Net income excluding the accounting changes was down
from last year, primarily
reflecting lower revenues from a smaller receivable
and lease portfolio caused by the
sales of retail notes in 1993, which was partially
offset by higher securitization and
servicing fee income from retail notes previously sold
but still administered. Revenues
totaled $104.7 million in the first quarter of 1994
compared with $115.1 million last
year. Interest expense for the quarter was down from
$43.6 million last year to $35.9
million in 1994.
Total receivable and lease acquisitions by the
company increased 11 percent for
the quarter. The higher acquisitions resulted mainly
from an increased volume of
agricultural and industrial notes. Acquisitions of
revolving charge receivables were also
higher in the first quarter compared to last year,
reflecting continuing growth in this
business.
Net credit receivables and leases financed by John
Deere Capital Corporation were
$3.477 billion at January 31, 1994 compared with
$3.933 billion one year ago. The
decrease in the portfolio was caused by note sales
during 1993 as previously mentioned.
Net credit receivables and leases administered, which
include receivables previously
securitized and sold but still administered, amounted
to $4.656 billion at January 31,
1994 compared with $4.520 billion at January 31, 1993.
Attached data accompany this press release
<PAGE>
FIRST QUARTER 1994 PRESS RELEASE
Net sales and revenues:
(millions of dollars)
THREE MONTHS ENDED
January 31
%
1994 1993 Change
Net Sales:
Agricultural equipment $ 887 $ 689 +29
Industrial equipment 308 231 +33
Lawn and grounds
care equipment 212 195 + 9
Total net sales 1,407 1,115 +26
Financial Services
revenues 298 281 + 6
Other revenues 22 28 -21
Total net sales
and revenues $1,727 $1,424 +21
United States and Canada:
Equipment net sales $1,120 $ 829 +35
Financial Services
revenues 298 281 + 6
Total 1,418 1,110 +28
Overseas net sales 287 286
Other revenues 22 28 -21
Total net sales
and revenues $1,727 $1,424 +21
Selected balance sheet data:
(millions of dollars)
January 31 October 31 January 31
1994 1993 1993
Equipment Operations:
Dealer accounts and notes
receivable - net $2,728 $2,794 $2,759
Inventories $ 688 $ 464 $ 719
Financial Services:
Credit receivables and leases
financed - net $3,877 $3,758 $4,319
Credit receivables and leases
administered - net $5,056 $5,195 $4,906
Insurance and health care
companies' assets $1,527 $1,472 $1,419
Average Shares
Outstanding 85,591,552 77,291,186 77,291,186
EXHIBIT 99
Contact: Robert J. Combs
Deere & Company
309/765-5014
FOR IMMEDIATE RELEASE (22 February 1994)
MOLINE, ILLINOIS - Deere & Company today reported
net income of $87.0
million or $1.02 per share in the first quarter of its
1994 fiscal year, compared with a
loss before the cumulative effect of changes in
accounting of $36.9 million or $.48 per
share in the first quarter of 1993. The first quarter
of Deere & Company's fiscal year
ended January 31.
Worldwide net sales and revenues increased 21
percent to $1.727 billion in the first
quarter of 1994 from $1.424 billion last year.
The $123.9 million improvement in income compared
with the first quarter of last
year was due primarily to significantly higher 1994
production and sales volumes. Total
worldwide production tonnage was 25 percent higher
than in last year's first quarter,
when several of the company's factories scheduled
additional production shutdowns
along with the normal holiday shutdowns. In addition,
income this year benefited from
lower operating expenses and improved productivity in
both the North American and
overseas operations.
Deere & Company's 1993 first quarter results were
restated for accounting changes
relating to Financial Accounting Standards Board
(FASB) Statement No. 106,
Employers' Accounting for Postretirement Benefits
Other Than Pensions, and FASB
Statement No. 112, Employers' Accounting for
Postemployment Benefits, which were
adopted in the fourth quarter of 1993, effective
retroactively to November 1, 1992.
After the cumulative effect of these changes, the net
loss for the first quarter of 1993
was $1.142 billion or $14.78 per share.
Deere & Company Chairman and Chief Executive
Officer Hans W. Becherer said,
"In response to strong retail demand, we have recently
increased production schedules
in each of our North American equipment operations.
As a result, 1994 worldwide
production tonnage is now anticipated to be about 13
percent higher than 1993 output,
which brings our production schedules up to the level
of expected retail demand.
Worldwide agricultural equipment production tonnage is
expected to be up
approximately 10 percent from last year, when dealer
receivables were reduced by $146
million. Lawn and grounds care equipment and
industrial equipment production
schedules are each anticipated to be up 19 percent
compared with a year ago.
Worldwide production during the final three quarters
of 1994 is scheduled to be up
about 10 percent from output in the same period last
year."
Net sales of equipment increased 26 percent and
were $1.407 billion in the current
quarter compared with $1.115 billion in the first
quarter of last year. Company
inventories and dealers' receivables totaled $3.415
billion, approximately equal to first
quarter 1993 levels when receivables had been
substantially reduced to facilitate
improved asset utilization. Financial services
revenues totaled $298 million in the first
quarter of 1994 compared with $281 million last year.
"Retail sales of John Deere agricultural equipment
in North America were higher
than first quarter 1993 levels, due to continued
strong retail demand," Becherer said.
"North American retail sales of our lawn and grounds
care equipment increased
significantly compared with the same period last year,
reflecting the continued recovery
in the general economy. North American industrial
equipment retail sales were also
up substantially for the quarter, resulting from
continued increases in residential and
public construction activity. Overseas industry
retail demand for agricultural equipment
continued to be relatively weak. However, overseas
retail sales of John Deere
equipment continued to outperform the industry,"
Becherer said.
Net income of the equipment operations totaled
$48.0 million for the first quarter
of 1994 compared with a net loss, excluding accounting
changes, of $78.0 million
incurred during the same period last year. All of the
company's equipment businesses
reported earnings improvements during the quarter.
The North American agricultural
equipment operations generated a strong operating
profit compared with the operating
loss incurred last year, primarily as a result of
substantially higher production and sales
volumes coupled with continued improvements in
operating efficiency. The North
American lawn and grounds care operations generated a
comparable operating profit
for the quarter compared with last year, and the North
American industrial equipment
operations had an operating profit for the quarter
compared with an operating loss
incurred during the same period last year. Higher
production and sales volumes
combined with lower operating costs were the major
factors contributing to the
industrial equipment division's earnings improvement.
The company's overseas
operations had a small operating profit during the
first quarter of 1994 compared with
a large operating loss last year, as operating costs
were substantially lower while
production volume was slightly higher than last year.
Operating profit is defined as
income before interest expense, income taxes and
certain other expenses.
Financial services' net income was $38.6 million
for the first quarter of 1994
compared with $40.9 million for the same period last
year excluding the cumulative
effect of accounting changes. Net income of the
credit operations was $25.6 million for
the first quarter of 1994, down from $30.8 million
last year excluding accounting
changes. The change in income primarily reflects
lower revenues from a smaller
receivable and lease portfolio caused mainly by the
sale of retail notes in 1993, which
was partially offset by higher securitization and
servicing fee income from notes
previously sold but still administered. Net income
from insurance and health care
operations was $13.0 million in the first quarter of
1994 compared with $10.1 million
excluding the accounting changes for the same period
last year, reflecting continued
profitable growth of those businesses.
"First quarter North American retail sales provide
a strong base for operations
during the remainder of the year," Becherer said.
"Despite weather-related shortfalls
of corn and soybean production, United States farm net
cash income is forecasted to
have achieved record levels in 1993. Due to the lower
1993 production and the
resulting reduction in carryover stocks, a substantial
increase in planted acreage of corn
and soybeans should occur in 1994. While farm income
will likely be lower in 1994 due
mainly to lower livestock cash receipts, farm net cash
income is still expected to be one
of the highest in history. Additionally, early
customer buying patterns are showing
continued strengthening in demand for our products.
These developments are currently
anticipated to result in an improved outlook for North
American industry retail sales
of agricultural equipment in 1994, assuming a return
to more normal weather patterns
and continuing low levels of interest rates.
"The European agricultural industry remains in the
midst of fundamental change
due to revisions to government agricultural policies,"
Becherer said. "Although the
long-term downward trend of European industry retail
sales of agricultural equipment
is expected to continue, the current outlook for 1994
is that retail sales will approximate
1993 levels," Becherer said.
"The North American economy is expected to continue
its recovery in 1994,"
Becherer said. "While factors including tax
increases, government spending reductions,
downsizing of the defense industry and recessionary
conditions prevalent with many of
the country's trading partners may limit general
growth prospects, the lowest mortgage
interest rates since the 1970's should continue to
stimulate housing starts and consumer
durable expenditures this year. Public construction
expenditures should also experience
moderate real growth, particularly in street, highway,
bridge and sewer projects. Such
developments should favorably affect the demand for
industrial and construction
equipment. Lawn and grounds care equipment is also
expected to benefit from
continued general economic growth and higher housing
starts.
"The outlook for all of our businesses remains
positive and results of the company's
equipment operations are expected to continue to
improve significantly in 1994,"
Becherer said. "Our new products continue to be well
received, and our competitive
position worldwide remains strong as we continue to
emphasize total quality and
enhanced
productivity."
The following information is disclosed on behalf of
the company's 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 net income was $23.0
million in the first quarter
of 1994 compared with $27.4 million in the same period
last year excluding the
cumulative effect of accounting changes ($23.6
million after the accounting changes).
Net income excluding the accounting changes was down
from last year, primarily
reflecting lower revenues from a smaller receivable
and lease portfolio caused by the
sales of retail notes in 1993, which was partially
offset by higher securitization and
servicing fee income from retail notes previously sold
but still administered. Revenues
totaled $104.7 million in the first quarter of 1994
compared with $115.1 million last
year. Interest expense for the quarter was down from
$43.6 million last year to $35.9
million in 1994.
Total receivable and lease acquisitions by the
company increased 11 percent for
the quarter. The higher acquisitions resulted mainly
from an increased volume of
agricultural and industrial notes. Acquisitions of
revolving charge receivables were also
higher in the first quarter compared to last year,
reflecting continuing growth in this
business.
Net credit receivables and leases financed by John
Deere Capital Corporation were
$3.477 billion at January 31, 1994 compared with
$3.933 billion one year ago. The
decrease in the portfolio was caused by note sales
during 1993 as previously mentioned.
Net credit receivables and leases administered, which
include receivables previously
securitized and sold but still administered, amounted
to $4.656 billion at January 31,
1994 compared with $4.520 billion at January 31, 1993.
Attached data accompany this press release
<PAGE>
FIRST QUARTER 1994 PRESS RELEASE
Net sales and revenues:
(millions of dollars)
THREE MONTHS ENDED
January 31
%
1994 1993 Change
Net Sales:
Agricultural equipment $ 887 $ 689 +29
Industrial equipment 308 231 +33
Lawn and grounds
care equipment 212 195 + 9
Total net sales 1,407 1,115 +26
Financial Services
revenues 298 281 + 6
Other revenues 22 28 -21
Total net sales
and revenues $1,727 $1,424 +21
United States and Canada:
Equipment net sales $1,120 $ 829 +35
Financial Services
revenues 298 281 + 6
Total 1,418 1,110 +28
Overseas net sales 287 286
Other revenues 22 28 -21
Total net sales
and revenues $1,727 $1,424 +21
Selected balance sheet data:
(millions of dollars)
January 31 October 31 January 31
1994 1993 1993
Equipment Operations:
Dealer accounts and notes
receivable - net $2,728 $2,794 $2,759
Inventories $ 688 $ 464 $ 719
Financial Services:
Credit receivables and leases
financed - net $3,877 $3,758 $4,319
Credit receivables and leases
administered - net $5,056 $5,195 $4,906
Insurance and health care
companies' assets $1,527 $1,472 $1,419
Average Shares
Outstanding 85,591,552 77,291,186 77,291,186
