John Deere 2013 Annual Report Download - page 4

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4
Deere Achieves Record Results as
Drive to Expand Global Customer
Base Moves Ahead
In 2013, John Deere had its best year yet. We delivered record
income for the third successive year and the eighth time in the
last 10 years. The company also generated its highest-ever
operating return on operating assets* (OROA), a reection of
the solid execution of our business plans.
At the same time, we expanded our worldwide footprint and
continued an aggressive launch of advanced new products.
Our commitment to being a good corporate citizen and
employer led to higher levels of volunteerism and engagement.
For the scal year, Deere reported income of $3.54 billion on net
sales and revenues of $37.8 billion. Income was up 15 percent
on a 5 percent increase in sales and revenues. Earnings per
share rose fully 19 percent, reecting the benet of fewer shares
outstanding due to continued share repurchases.
The year’s results produced healthy levels of economic prot, or
Shareholder Valued Added* (SVA), which reached $3.39 billion.
SVA – operating prot less an implied capital charge – is the
primary measure used in managing the company and making
investment decisions.
Operating cash ow totaled $3.25 billion for the year. These
dollars funded important geographic expansions and delivered
value directly to investors as dividends and share repurchases.
Dividend payments and buybacks totaled $2.28 billion for the
year. Since 2004, the company has increased the quarterly
dividend rate on 11 occasions and repurchased about 180 million
shares of stock. In a vote of condence in the company’s future,
Deere’s board of directors earlier this month authorized
additional share repurchases of up to $8 billion.
CHAIRMAN’S MESSAGE
Customers appreciate the fast hydraulic ow of the productive
532-horsepower 870G LC excavator. It saves them fuel,
time and money, making it a perfect choice for excavating
and truck-loading operations.
* OROA and SVA are non-GAAP nancial measures. See page 14 for details.