Deere & Company (DE) has reported a 45.90 percent plunge in profit for the quarter ended Oct. 31, 2015. The company has earned $351.20 million, or $1.08 a share in the quarter, compared with $649.20 million, or $1.83 a share for the same period last year. Revenue during the quarter dropped 25.09 percent to $6,715.40 million from $8,964.70 million in the previous year period. Gross margin for the quarter contracted 154 basis points over the previous year period to 30.45 percent. Operating margin for the quarter stood at negative 62.74 percent as compared to a negative 56 percent for the previous year period.
"John Deere has completed a successful year in the face of further weakness in the global agricultural sector and a slowdown in construction-equipment markets," said Samuel R. Allen, chairman and chief executive officer. "Sales and earnings for the year were the sixth-highest in company history, a notable achievement in light of the challenging market conditions we experienced. The company's performance benefited from the adept execution of our business plans and disciplined cost management. As a result, Deere remains well-positioned to serve its customers while continuing to make investments in quality and innovation that are designed to drive growth in the future."
Operating cash flow improves
Deere & Co has generated cash of $3,740.30 million from operating activities during the year, up 6.08 percent or $214.40 million, when compared with the last year. The company has spent $1,058.70 million cash to meet investing activities during the year as against cash outgo of $2,881 million in the last year. It has incurred net capital expenditure of $1,082.70 million on net basis during the year, up 108.41 percent or $563.20 million from year ago.
The company has spent $2,119.10 million cash to carry out financing activities during the year as against cash outgo of $288.30 million in the last year period.
Cash and cash equivalents stood at $4,162.20 million as on Oct. 31, 2015, up 9.91 percent or $375.20 million from $3,787 million on Oct. 31, 2014.
Debt remains almost stable
Total debt of Deere & Company remained almost stable for the quarter at $36,849.40 million, when compared with the last year period. Total debt was 63.59 percent of total assets as on Oct. 31, 2015, compared with 60.26 percent on Oct. 31, 2014. Debt to equity ratio was at 5.46 as on Oct. 31, 2015, up from 4.08 as on Oct. 31, 2014. Interest coverage ratio improved to 25.86 for the quarter from 29.10 for the same period last year.
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