Monday, February 27, 2017

Deere annual report 2016

Deere, annual, 2016, report, front page

To read the report in full on the Deere home page then please click here, to check out the previous publication then please visit Deere annual report 2015 and to find out more regarding Deere then please visit analysis of Deere 2015.

As can be seen in the financial statement below Deere have, if one includes 2016, had two really bad years. The sales keeps dropping and dropping and have gone from 35 billion USD in 2013 to this very poor of an excuse results of 23 billion USD. So sales down by over -30% in 4 years. The earnings are down to 1.5 billion USD and two years ago that value was more than doubled and it was better yet in 2013. No, Deere is not doing well. Even though they have kept buying back shares, which I certainly hope they have stopped doing now, they simply cannot buy back in quickly enough to cover for the strong earnings crash that took place.

Deere, 2016, financial statement

Conclusion: Deere is having a tough time. Berkshire Hathaway have decided to step out of Deere which is understandable considering that there is negative correlation between result and share price and they most likely walked away with an annual of 20+% when they sold it. I will remain shareholder for the time being but I am annoyed that they do not destroy their shares but keep them in the books.

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