Companies‎ > ‎US Research‎ > ‎

Deere & Co. (NYSE: DE) | Company Profile, History, Competitors

 

Deere & Co. (NYSE: DE) is a leading manufacturer of agricultural and construction equipment. The company was founded in 1837 and is headquartered in Moline, IL.

Deere named after its founder John Deere began making agricultural equipment in 1837. Since then, the company has become one of the largest manufacturers of agricultural and construction machinery, such as small and large row crop tractors, combine harvests, sprayers and planters.

Business Overview

Deere operates in three main segments.
  • Agriculture and Turf Equipment (70% of 2017 Revenues): Manufactures and distributes line of agriculture and turf equipment and parts.
  • Construction and Forestry (20% of 2017 Revenues): Manufactures and distributes machines and service parts for construction, earthmoving, material handling and timber harvesting.
  • Financial Services (10% of 2017 Revenues): Provides financing for sales and leases by for new and used equipment.

Agriculture and Turf Equipment Segment

Deere sells a full range of agriculture and turf equipment. Agriculture equipment include tractors, loaders, combines, cotton pickers/strippers, harvesters, seeding and application equipment. Turf equipment includes lawnmowers, golf course equipment, and commercial mowing equipment. Deere also is a leader in agricultural management systems technology.

Construction and Forestry Segment

Deere sells a wide range of machines for the construction and forestry industry. These include loaders, crawler dozers, excavators, dump trucks, skidders and harvesters.

Financial Services Segment

Deere finances sales and leases by dealers for new and used equipment. In the US, sales and loan contracts are purchased by John Deere Capital Corporation. In Canada, sales and loan contracts are financed by John Deere Canada ULC. The typical lease lease is four months to six years and gives the customer an option of purchasing the equipment at the end of the lease term. The minimum down payments are generally 10% to 30% of the purchase price.

Dealer Network

Deere had approximately 2,359 dealers at the end of 2017, most are independently owned and operated. Outside the US and Canada, Deere agriculture and turf eqipment is sold to distributors for resale in over 100 countries. 

Competitors

In Agriculture and Turf equipment, the main competitors are AGCO, CNH Industrial, Toro and MTD Products. Deere has an over 50% market share in North American Agriculture.*

In Construction Forestry, the main competitors are Caterpillar, Komatsu, Volvo, CNH industrial, Hyundai and Blount International.

Management

Samuel Allen (CEO): Samuel Allen serves as CEO since 2010. Prior, he served in various roles at Deere, including Chief Operating Officer, President Worldwide Construction and President Financial Services.

Rajesh Kalathur (CFO): Rajesh Kalathur serve as CFO since 2012. Prior, he served in various roles at Deere including Deputy CFO and VP Sales and Marketing.

Financials

 $ USD in millions     2013     2014  2015  2016  2017
 Revenues  $37,795  $36,067  $28,863  $26,644  $29,738 
 Gross Profit  $12,128  $11,291   $8,720   $8,395   $9,804 
 Operating Profit  $6,225  $5,461   $3,460   $2,988   $4,053 
 Net Income $3,537  $3,162  $1,940   $1,524   $2,159 
 EPS $9.18  $8.71  $5.81  $4.83  $6.76