glennmac
Veteran Member
Here are some quotes from the 8/14/01 3Q report:
<font color=blue>DEERE REPORTS PROFITABLE THIRD QUARTER DESPITE WEAK ECONOMIC CONDITIONS
MOLINE, Illinois (August 14, 2001) Deere & Company today reported worldwide net income of $71.8 million, or $0.30 per share, for the third quarter ended July 31, and $256.1 million, or $1.08 per share, for the first nine months of 2001. This compares with net income of $172.4 million, or $0.72 per share, and $414.4 million, or $1.75 per share, for the comparable periods last year.
"Deere's third-quarter results continued to reflect the general economic slowdown and low farm commodity prices," said Robert W. Lane, chairman and chief executive officer. "Although we are pleased to have remained profitable in the face of such difficult conditions, we are continuing to take aggressive actions to further strengthen our competitiveness and drive more efficient asset levels." These steps - which include additional production cutbacks and an early-retirement program previously announced -- are expected to have an adverse impact on fourth-quarter financial results, he noted.
Excluding acquisitions, both the quarter and year-to-date periods were negatively affected by lower sales of commercial and consumer equipment and of construction and forestry equipment.
.
Operating profit of the worldwide commercial and consumer equipment division was $12 million for the quarter and $76 million for the first nine months, compared with $46 million and $170 million in the same 2000 periods. Compared with last year, net sales were 2 percent higher for the quarter and 7 percent lower year to date. Excluding acquisitions, net sales decreased 7 percent for the quarter and 12 percent for nine months, primarily reflecting the impact of weaker economic conditions and unfavorable weather during the important spring selling season. In addition, a new process aimed at faster order fulfillment, which allows dealers to operate with lower inventories, had an adverse impact on year-to-date shipments. Operating profit decreased for both periods primarily due to the lower sales and production volumes and related manufacturing inefficiencies, and to start-up costs associated with new products and new facilities.
Market Conditions & Outlook
Based on the market conditions outlined below, as well as management's year-end asset targets, the company's physical volume of sales is currently forecast to be down 14 percent for fourth quarter and 2 percent for the full year. Without the effect of acquisitions in either year, physical volume is projected to decline by 16 percent in the fourth quarter and 5 percent for the full year. Company profit margins will be under significant pressure due in part to these reduced production levels. As a result of these factors, Deere currently projects breakeven performance for the full year, including the estimated $140 million after-tax cost of the early-retirement program.
Commercial & Consumer Equipment:
Making Further Production Cuts. Deere year-to-date sales have been negatively affected by the slow economy and by adverse weather in the spring. This year's weak markets, as well as adoption of the less asset-intensive order-fulfillment process, are leading to further production cutbacks in the fourth quarter. In this regard, the Horicon, Wisconsin, factory for premium lawn equipment will be shut down for about one month and overall division production for the quarter is expected to be about 40 percent below last year's levels. As a result, shipments of Deere's commercial and consumer equipment for 2001 are expected to remain well below prior-year levels.
Actions Geared to Improved Performance Throughout Cycle
"We are determined to achieve better alignment between levels of equipment production and retail sales and are taking further actions to curtail production in light of today's continued depressed market conditions," Lane commented. "While working in support of improved performance in the future, these steps will sharply reduce profit in the upcoming quarter."
At the same time, Deere is aggressively moving ahead with the development of new products aimed at enhancing customer productivity and satisfaction while extending the company's market leadership on a global basis. "We're well into the process of introducing a record number of new products this year, and have just concluded our largest-ever new-product show for North and South American agricultural-equipment dealers," Lane said. "In a few weeks, we'll be unveiling more than 60 new products to our dealers in Europe as part of our drive for a stronger competitive position and improved business results in that very important region. We're confident that customer response to these advanced new products, together with our aggressive actions to achieve structural improvements in efficiency, will help lead to better performance in all phases of the business cycle and produce higher returns for Deere investors."</font color=blue>
<font color=blue>DEERE REPORTS PROFITABLE THIRD QUARTER DESPITE WEAK ECONOMIC CONDITIONS
MOLINE, Illinois (August 14, 2001) Deere & Company today reported worldwide net income of $71.8 million, or $0.30 per share, for the third quarter ended July 31, and $256.1 million, or $1.08 per share, for the first nine months of 2001. This compares with net income of $172.4 million, or $0.72 per share, and $414.4 million, or $1.75 per share, for the comparable periods last year.
"Deere's third-quarter results continued to reflect the general economic slowdown and low farm commodity prices," said Robert W. Lane, chairman and chief executive officer. "Although we are pleased to have remained profitable in the face of such difficult conditions, we are continuing to take aggressive actions to further strengthen our competitiveness and drive more efficient asset levels." These steps - which include additional production cutbacks and an early-retirement program previously announced -- are expected to have an adverse impact on fourth-quarter financial results, he noted.
Excluding acquisitions, both the quarter and year-to-date periods were negatively affected by lower sales of commercial and consumer equipment and of construction and forestry equipment.
.
Operating profit of the worldwide commercial and consumer equipment division was $12 million for the quarter and $76 million for the first nine months, compared with $46 million and $170 million in the same 2000 periods. Compared with last year, net sales were 2 percent higher for the quarter and 7 percent lower year to date. Excluding acquisitions, net sales decreased 7 percent for the quarter and 12 percent for nine months, primarily reflecting the impact of weaker economic conditions and unfavorable weather during the important spring selling season. In addition, a new process aimed at faster order fulfillment, which allows dealers to operate with lower inventories, had an adverse impact on year-to-date shipments. Operating profit decreased for both periods primarily due to the lower sales and production volumes and related manufacturing inefficiencies, and to start-up costs associated with new products and new facilities.
Market Conditions & Outlook
Based on the market conditions outlined below, as well as management's year-end asset targets, the company's physical volume of sales is currently forecast to be down 14 percent for fourth quarter and 2 percent for the full year. Without the effect of acquisitions in either year, physical volume is projected to decline by 16 percent in the fourth quarter and 5 percent for the full year. Company profit margins will be under significant pressure due in part to these reduced production levels. As a result of these factors, Deere currently projects breakeven performance for the full year, including the estimated $140 million after-tax cost of the early-retirement program.
Commercial & Consumer Equipment:
Making Further Production Cuts. Deere year-to-date sales have been negatively affected by the slow economy and by adverse weather in the spring. This year's weak markets, as well as adoption of the less asset-intensive order-fulfillment process, are leading to further production cutbacks in the fourth quarter. In this regard, the Horicon, Wisconsin, factory for premium lawn equipment will be shut down for about one month and overall division production for the quarter is expected to be about 40 percent below last year's levels. As a result, shipments of Deere's commercial and consumer equipment for 2001 are expected to remain well below prior-year levels.
Actions Geared to Improved Performance Throughout Cycle
"We are determined to achieve better alignment between levels of equipment production and retail sales and are taking further actions to curtail production in light of today's continued depressed market conditions," Lane commented. "While working in support of improved performance in the future, these steps will sharply reduce profit in the upcoming quarter."
At the same time, Deere is aggressively moving ahead with the development of new products aimed at enhancing customer productivity and satisfaction while extending the company's market leadership on a global basis. "We're well into the process of introducing a record number of new products this year, and have just concluded our largest-ever new-product show for North and South American agricultural-equipment dealers," Lane said. "In a few weeks, we'll be unveiling more than 60 new products to our dealers in Europe as part of our drive for a stronger competitive position and improved business results in that very important region. We're confident that customer response to these advanced new products, together with our aggressive actions to achieve structural improvements in efficiency, will help lead to better performance in all phases of the business cycle and produce higher returns for Deere investors."</font color=blue>
