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 21, 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 7 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 21, 1995
<PAGE>
EXHIBIT INDEX
Number and Description Sequential Page Number
of Exhibit
(99) Press release and
additional information Pg. 4
<PAGE>
Exhibit 99
FOR IMMEDIATE RELEASE (21 February 1995)
MOLINE, ILLINOIS -- Deere & Company today reported worldwide
net income of $138.4 million or $1.60 per share in the first
quarter of 1995 compared with $87.0 million or $1.02 per share
last year. This was the company's sixth consecutive quarter of
record earnings and the first time that earnings in the first
quarter exceeded $100 million.
Worldwide net income improved by $51.4 million or approximately
60 percent compared with last year's previous record first
quarter due primarily to continued improvements in both overseas
and domestic operating efficiencies, combined with higher
production and sales activity. The first quarter 1995 worldwide
production tonnage was approximately 11 percent higher than last
year.
Worldwide net sales and revenues increased 22 percent to
$2.106 billion in the first quarter of 1995 compared with $1.727
billion last year. Net sales and revenues include net sales to
dealers of agricultural, industrial and lawn and grounds care
equipment which totaled $1.731 billion in the first quarter of
1995 compared with $1.407 billion last year. North American
sales of John Deere agricultural, industrial and lawn and grounds
care equipment all increased during the quarter compared with
last year. Overseas net sales were also higher, increasing 41
percent compared with a year ago.
The company's worldwide equipment operations, which exclude
the financial services subsidiaries and unconsolidated
affiliates, had net income of $95.8 million compared with $48.0
million last year. All of the company's equipment businesses
generated higher profits for the quarter compared with last year.
The improved results generally reflect higher production and
sales volumes and continued domestic and overseas improvements in
operating efficiencies.
Through the date of this report, the company and the United
Auto Workers have been unable to reach an agreement as to the
terms of a new contract that would replace the previous agreement
which expired on September 30, 1994. Employees are continuing to
work under the terms of the former contract, and factory
operations remain normal.
Net income of the financial services subsidiaries was $42.8
million for the quarter compared with $38.6 million last year.
Net income of the credit operations was $29.7 million compared
with $25.6 million last year due primarily to a larger average
portfolio financed and a lower provision for credit losses. Net
income of the insurance and health care operations was $13.1
million compared with $13.0 million last year.
Deere & Company Chairman and Chief Executive Officer Hans W.
Becherer said, "First quarter North American retail sales of
agricultural equipment continue to provide a strong base for
operations. Near-record United States net farm cash income in
1994 should support strong 1995 farm expenditures. Higher
exports of farm commodities should continue to result from
ratification of the General Agreement on Tariffs and Trade, which
lowers European Union export subsidies. Higher incomes in
developing countries are expected to promote better markets for
United States grains and oil seeds. Although some uncertainty may
develop during 1995 as a result of a new pending United States
farm bill, farmers have made significant improvements in their
balance sheets, which increases their ability to modernize their
equipment lines. Additionally, the company's new row-crop
tractor lines have been well received by customers throughout the
world. We believe, on balance, these factors will support
farmers' buying confidence and, as a result, worldwide demand for
agricultural equipment will remain strong.
"Similarly, the markets for the company's other major
businesses remain healthy," Becherer said. "The North American
general economy continues to show moderate growth, which should
support strong 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 company's
worldwide equipment operations' production tonnage is expected to
increase by approximately four percent in 1995 compared with
1994," Becherer said. "North American production tonnage is
expected to increase by six percent, while overseas schedules are
expected to decrease by four percent. Second quarter worldwide
production tonnage is expected to increase by approximately seven
percent compared with last year, reflecting continued strong
retail demand coupled with the excellent initial acceptance of
the new 8000-series row-crop tractor line. Although certain
tires remain in tight supply due to a work stoppage at one of our
key suppliers, second quarter product availability should not be
adversely affected if promised supply dates are met.
"The current outlook for our businesses remains positive,"
Becherer said. "Our new products have been well accepted and the
company's competitive position worldwide remains very strong.
Operating margins have continued to reflect our ongoing efforts
to improve quality, reduce costs and enhance profitability. Our
strategic commitment to continuous improvement and our focus on
profitable growth in worldwide markets should yield important
benefits to our company in 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 net income was $27.4
million
in the first quarter of 1995 compared with $23.0 million in the
same period last year. Net income for the quarter was favorably
affected by a larger average portfolio financed and a lower
provision for credit losses. The average balance of credit
receivables and leases financed was 20 percent higher in the
first quarter of 1995 compared with the same period last year.
Credit receivable and lease acquisitions increased 20
percent
during the first quarter. Retail notes acquired during the
quarter totaled $703 million, a 19 percent increase over the
first quarter 1994 acquisitions. Acquisitions of John Deere
equipment notes were 21 percent higher in the current year.
Acquisitions of revolving charge accounts and wholesale
receivables also increased during the quarter compared with last
year.
Credit receivables and leases financed by John Deere Capital
Corporation were $4.208 billion at January 31, 1995 compared with
$3.477 billion one year ago. The increase resulted from credit
acquisitions exceeding collections during the last 12 months,
partially offset by the sale of retail notes during the fourth
quarter of 1994. Credit receivables and leases administered,
which include receivables previously securitized and sold,
totaled $5.195 billion at January 31, 1995 compared with $4.656
billion at January 31, 1994.
The attached data accompany this press release
<PAGE>
First Quarter 1995 Press Release
Net sales and revenues:
(millions of dollars)
Three Months Ended
January 31
%
1995 1994 Change
Net sales:
Agricultural equipment 1,022 887 15
Industrial equipment 408 308 32
Lawn and grounds
care equipment 301 212 42
Total net sales 1,731 1,407 23
Financial Services
revenues 347 298 16
Other revenues 28 22 27
Total net sales
and revenues 2,106 1,727 22
United States and Canada:
Equipment net sales 1,326 1,120 18
Financial Services
revenues 347 298 16
Total 1,673 1,418 18
Overseas net sales 405 287 41
Other revenues 28 22 27
Total net sales
and revenues 2,106 1,727 22
Selected balance sheet data:
(millions of dollars)
January 31 October 31 January 31
1995 1994 1994
Equipment Operations:
Dealer accounts and notes
receivable - net 3,016 2,939 2,728
Inventories 943 698 688
Financial Services:
Credit receivables and leases
financed - net 4,674 4,511 3,877
Credit receivables and leases
administered - net 5,660 5,725 5,056
Insurance and health care
companies' assets 1,686 1,671 1,527
Average shares outstanding 86,485,581 86,146,147 85,591,552
