Deere and Company has posted another record quarter and another record year for earnings. Deere spokesman Ken Golden says the company’s net income for the fourth quarter, which ended in October, was $807 million.
For the year, the manufacturer posted earnings of $3.54 billion. “It’s the third year in a row that we’ve establish a record in net income and it’s the 14th straight quarter that we’ve had a year-over-year record in the quarter,” Golden said. The fourth quarter earnings were up 17-percent over the same quarter a year ago, while fiscal year 2013 net income rose 15-percent over 2012.
Golden credits “rigorous management” of costs and assets, plus a record number of new products. “The company is a different company than it was even a decade or two ago,” Golden said. “We are much more lean. We are much more focused on the cost of doing business and our employees have worked very hard to put us in a position to be a great global company.”
For 2014, Deere and Company predicts it will earn $3.3 billion, down about $200 million from this year. Golden notes, while earnings may go down, they’re not dropping much and they’re falling from very high levels. “The farmer, in the U.S. and North America, is still in great shape and we also see construction coming back with an improved economy,” Golden says.
Deere reports sales of farm and landscape equipment increased seven percent for the full year. But the company expects a six percent decrease next year because of lower commodity prices. Construction and forestry sales dropped eight percent, but next year are forecast to increase 10 percent. The Quad Cities based Deere is Iowa’s largest manufacturer with plants in Dubuque, Waterloo, Ankeny, Ottumwa and Davenport.