-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DD4uPnZmiyyzYgIq5gxPIc9L01VETr9G+AWJhC667Wf1JHh6AoBkoWyMWVk5Usu6 e61hr5QRRzUvaRnud3/b+w== 0000315189-96-000001.txt : 19960216 0000315189-96-000001.hdr.sgml : 19960216 ACCESSION NUMBER: 0000315189-96-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960215 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960215 SROS: CSE SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DEERE & CO CENTRAL INDEX KEY: 0000315189 STANDARD INDUSTRIAL CLASSIFICATION: FARM MACHINERY & EQUIPMENT [3523] IRS NUMBER: 362382580 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04121 FILM NUMBER: 96520940 BUSINESS ADDRESS: STREET 1: JOHN DEERE RD CITY: MOLINE STATE: IL ZIP: 61265 BUSINESS PHONE: 3097658000 8-K 1 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 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 EXHIBIT INDEX Sequential Page Number and Description of Exhibit Number (99) Press release and additional information Pg. 4 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. 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 -----END PRIVACY-ENHANCED MESSAGE-----