John Deere 2010 Annual Report Download - page 9

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9
9
DEERE ENTERPRISE – SVA (MM)
2010 HIGHLIGHTS
Improved fi nancial results –
and continued asset
discipline yield Shareholder
Value Added (SVA) –
operating profi t minus
a capital charge –
of $1.714 billion, slightly
above previous high (2008).
Resulting from higher profi t –
and strong execution,
cash fl ow from operations
reaches $2.282 billion
for year, second-best ever.
Providing basis for future growth, capital spending totals –
$795 million while R&D expense tops $1 billion mark for fi rst time.
Quarterly dividend rate increased by 7% in third quarter; share –
repurchases resume, totaling nearly $360 million for year.
Exhibiting increasing focus on serving global markets, company –
opens a technology and innovation center in Germany; expands
product research and development center in China.
EQUIPMENT OPERATIONS – SVA (MM)
Operating profi t more than –
doubles, to $2.909 billion;
results aided by higher
volumes and improved pricing.
SVA for equipment operations –
hits record $1.650 billion due
to higher profi t and continued
success managing assets.
Refl ecting success serving an –
increasingly global customer
audience, sales outside U.S. and Canada increase by about
$1 billion, or 14%. Increase comes mostly from Central and
South America, led by improved markets in Brazil.
Showing leadership in engine technology, John Deere Power –
Systems is one of fi rst engine makers to get over-175-hp
engines certifi ed to meet stricter emissions standards taking
effect in 2011. New 9.0L engines are expected to provide
fuel economy similar to earlier models and can use biodiesel-
blended fuels.
In 2010, John Deere Water opened its latest precision irrigation-equipment
manufacturing center, in India. The company’s highly engineered systems
allow improved crop quality and yields without increasing water use.
This helps farmers control input costs while maximizing crop value.
2008 2009 2010
$1,643 $64 $1,650
2008 2009 2010
$1,702 $1,714
-$84