John Deere 2009 Annual Report Download - page 8

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8
DEERE ENTERPRISE SHAREHOLDER VALUE ADDED - SVA (MM)
2007 2008 2009
$1,314 $1,702
2009 Highlights
ENTERPRISE HIGHLIGHTS
Economic slowdown contributes to negative SVA across enterprise. •
Equipment operations’ SVA remains positive ($64 MM) mainly as a
result of strength in certain Agriculture and Turf markets. However,
Financial Services records SVA defi cit mainly due to lower earnings.
Company reports eighth-highest net income of $873 million in spite •
of historic economic downturn and 19% decline in net sales and
revenues.
Cash fl ow from operations totals nearly $2.0 billion for enterprise, •
helped by company’s continued profi tability and disciplined asset
management.
Providing basis for future growth, capital spending is $767 million; •
emphasis on development of cleaner-burning engines is major
factor.
Indicative of company’s continuing focus on innovation, research •
and development expenditures reach record $977 million.
FINANCIAL SERVICES - SVA (MM)
2007 2008 2009
$90 $59
-$148
FINANCIAL SERVICES HIGHLIGHTS
Despite diffi cult conditions in capital markets, fi nancial services net •
income is $202.5 million; results are aided by strong agricultural
lending volumes and portfolio performance.
Worldwide portfolio of receivables and leases (both owned and •
managed) increases by 2%, mainly refl ecting growth in agricultural
loans.
Credit losses move higher but remain quite low – less than 1% of •
owned portfolio.
Farm Plan – which provides accounts-receivable management and •
sales fi nance for ag producers through John Deere dealers and ag
input retailers – grows more than 5% despite declining input prices.
John Deere Risk Protection extends growth record, providing crop •
insurance on more than 13 million acres, up 17% over prior year.
John Deere Renewables wind-power projects increase to 34 sites •
with more than 700 megawatts of generating capacity, enough to
power nearly 200,000 homes while avoiding emissions of more than
1.25 million tons of CO2 annually.
-$84