DEERE & CO - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2005

Commission file no: 1-4121

DEERE & COMPANY

Delaware		36-2382580
(State of incorporation)		(IRS Employer Identification No.)

One John Deere Place

Moline, Illinois 61265

(Address of principal executive offices)

Telephone Number: (309) 765-8000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes ý No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes ý No o

At April 30, 2005, 242,211,084 shares of common stock, $1 par value, of the registrant were outstanding.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

DEERE & COMPANY
STATEMENT OF CONSOLIDATED INCOME
For the Three Months Ended April 30, 2005 and 2004
(In millions of dollars and shares except per share amounts) Unaudited

	2005		2004

Net Sales and Revenues
Net sales	$	6,019.2	$	5,296.1
Finance and interest income	341.9		294.0
Health care premiums and fees	176.6		194.3
Other income	83.7		92.6
Total	6,621.4		5,877.0

Costs and Expenses
Cost of sales	4,541.6		3,983.3
Research and development expenses	170.4		150.6
Selling, administrative and general expenses	597.9		583.7
Interest expense	180.1		151.2
Health care claims and costs	142.4		180.7
Other operating expenses	94.1		85.7
Total	5,726.5		5,135.2

Income of Consolidated Group Before Income Taxes	894.9		741.8
Provision for income taxes	297.2		262.6
Income of Consolidated Group	597.7		479.2

Equity in Income (Loss) of Unconsolidated Affiliates
Credit	.1		.2
Other	6.2		(2.1		)
Total	6.3		(1.9		)

Net Income	$	604.0	$	477.3

Per Share:
Net income - basic	$	2.46	$	1.93
Net income - diluted	$	2.43	$	1.88

Average Shares Outstanding:
Basic	245.4		247.7
Diluted	248.7		254.3

See Notes to Interim Financial Statements.

DEERE & COMPANY
STATEMENT OF CONSOLIDATED INCOME
For the Six Months Ended April 30, 2005 and 2004
(In millions of dollars and shares except per share amounts) Unaudited

	2005		2004

Net Sales and Revenues
Net sales	$	9,545.7	$	8,207.7
Finance and interest income	667.5		588.7
Health care premiums and fees	365.5		375.6
Other income	169.8		188.8
Total	10,748.5		9,360.8

Costs and Expenses
Cost of sales	7,307.6		6,277.7
Research and development expenses	319.7		288.8
Selling, administrative and general expenses	1,059.6		1,001.5
Interest expense	347.2		298.6
Health care claims and costs	294.5		331.3
Other operating expenses	179.5		158.9
Total	9,508.1		8,356.8

Income of Consolidated Group Before Income Taxes	1,240.4		1,004.0
Provision for income taxes	417.0		355.1
Income of Consolidated Group	823.4		648.9

Equity in Income (Loss) of Unconsolidated Affiliates
Credit	.3		.3
Other	3.1		(1.1		)
Total	3.4		(.8		)

Net Income	$	826.8	$	648.1

Per Share:
Net income - basic	$	3.36	$	2.63
Net income - diluted	$	3.31	$	2.56

Average Shares Outstanding:
Basic	246.2		246.5
Diluted	249.8		253.0

See Notes to Interim Financial Statements.