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 15, 1996
(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 15, 1996
<PAGE>
EXHIBIT INDEX
Sequential Page
Number and Description 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 (15 FEBRUARY 1996)
MOLINE, ILLINOIS -- Deere & Company today reported record
first quarter net income of $166.2 million or $.63 per share for
the quarter ended January 31, an increase of 20 percent compared
with 1995 first quarter net income of $138.4 million or $.53 per
share. Results of both the equipment and financial services
operations improved compared with a year ago, reflecting the
continued strong retail demand in most of the company's major
markets.
Worldwide net sales and revenues increased 11 percent to
$2.318 billion in the first quarter of 1996 compared with $2.088
billion last year. Net sales to dealers of agricultural,
industrial
and lawn and grounds care equipment were $1.937 billion in the
first quarter this year compared with $1.731 billion last year.
All
of the equipment businesses reported higher net sales during the
quarter compared with last year. Export sales from the United
States continued to strengthen and totaled $308 million, a gain
of
19 percent over last year s export sales of $259 million.
Additionally, overseas sales increased 33 percent compared with a
year ago. Overall, the company's worldwide physical volume of
sales increased eight percent for the quarter compared with last
year, an increase which was slightly lower than anticipated due
to
shipping delays related to the extreme winter weather conditions
in
North America.
The company's worldwide equipment operations, which exclude
the financial services subsidiaries and unconsolidated
affiliates,
had net income of $116.1 million in the first quarter of 1996
compared with $95.8 million last year. Worldwide agricultural and
industrial equipment operating profits for the quarter were
higher
compared with last year, primarily due to increased production
and
sales volumes. Overseas results continued to improve
significantly, reflecting higher volumes as well as continued
cost
improvements. Operating profits for the lawn and grounds care
equipment operations declined compared with last year, reflecting
higher selling and promotional expenses associated with new
products coupled with increased returns and allowances for hand-
held products.
Net income of the financial services subsidiaries was $48.7
million for the quarter compared with $42.8 million last year.
Net
income of the credit operations was $34.5 million compared with
$29.7 million last year. This increase in income resulted
primarily from a larger average portfolio financed, slightly
offset
by lower financing spreads. Net income of the insurance
operations
increased from $8.2 million last year to $9.6 million this year
as
a result of improved underwriting results. Net income of the
health
care operations was down slightly in the quarter compared with
last
year.
Deere & Company Chairman and Chief Executive Officer Hans W.
Becherer said, "The high level of worldwide retail sales of John
Deere agricultural equipment in the first quarter provides a
solid
base for operations during the remainder of the year. The
continued
strong worldwide demand for agricultural commodities, coupled
with
lower than anticipated harvest yields, have resulted in
substantial
increases in commodity prices. Additionally, world grain stocks,
relative to use, are currently at the lowest levels in more than
35
years. We believe these positive conditions are maintaining
farmers' confidence at very high levels, which should result in
continued strong demand for new and used agricultural equipment.
"North American demand for John Deere industrial and lawn and
grounds care equipment and financial services products also
remained strong during the first quarter of 1996," Becherer said.
"The markets for these products are benefiting from the positive
effects of lower interest rates and the solid economic
fundamentals
of the markets in which we compete.
"In response to these positive market conditions, the
company s worldwide physical volume of sales to dealers for 1996
is
expected to increase by approximately five percent compared with
1995," Becherer said. "During the second quarter, the worldwide
physical volume of sales is expected to increase approximately 11
percent compared with last year.
"The current outlook for our businesses remains very
positive," Becherer said. "The company's operating margins have
remained strong, due to our focus on continuous improvement,
profitability and quality. We continue to aggressively pursue new
growth initiatives throughout our worldwide operations, which
should promote additional profitable growth in the future. Based
on this outlook, we currently expect 1996 to be another record
year
for the company, with growth in both revenues and earnings."
# # #
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 $32.3 million
in the first quarter of 1996 compared with $27.4 million in the
same period last year. Net income for the quarter was favorably
affected by a larger average portfolio financed, slightly offset
by
lower financing spreads compared with a year ago. The average
balance of credit receivables and leases financed was 19 percent
higher in the first quarter of 1996 compared with the same period
last year.
Credit receivable and lease acquisitions increased 25 percent
during the first quarter. Acquisitions of John Deere equipment
notes were 15 percent higher in the current quarter, primarily
due
to increased retail sales of John Deere equipment. Acquisitions
of
retail notes, revolving charge accounts, leases and wholesale
receivables all increased during the quarter compared with last
year. Retail notes acquired during the quarter totaled $834
million, a 19 percent increase over first quarter 1995
acquisitions.
Net receivables and leases financed by John Deere Capital
Corporation were $5.005 billion at January 31, 1996 compared with
$4.208 billion one year ago. The increase resulted from credit
acquisitions exceeding collections during the last 12 months,
partially offset by retail note sales during the same period. Net
credit receivables and leases administered, which include
receivables previously securitized and sold, totaled $5.969
billion
at January 31, 1996 compared with $5.195 billion at January 31,
1995.
# # #
The attached data accompany this press release.
<PAGE>
First Quarter 1996 Press Release
Net sales and revenues:
(millions of dollars)
Three Months Ended
January 31
%
1996 1995 Change
Net sales:
Agricultural equipment 1,186 1,022 +16
Industrial equipment 443 408 + 9
Lawn and grounds
care equipment 308 301 + 2
Total net sales 1,937 1,731 +12
Financial Services
revenues 347 329 + 5
Other revenues 34 28 +21
Total net sales
and revenues 2,318 2,088 +11
United States and Canada:
Equipment net sales 1,397 1,326 + 5
Financial Services
revenues 347 329 + 5
Total 1,744 1,655 + 5
Overseas net sales 540 405 +33
Other revenues 34 28 +21
Total net sales
and revenues 2,318 2,088 +11
Selected balance sheet data:
(millions of dollars)
January 31 October 31 January 31
1996 1995 1995
Equipment Operations:
Dealer accounts and notes
receivable - net 3,378 3,260 3,016
Inventories 980 721 943
Financial Services:
Credit receivables and leases
financed - net 5,549 5,366 4,674
Credit receivables and leases
administered - net 6,618 6,666 5,660
Insurance companies' assets 1,153 1,127 1,480
Health care companies' assets 234 237 206
Average shares
outstanding 262,228,903 260,494,446 259,456,743
