- Fourth-quarter income rises 46% on 20% increase in sales and revenues; full-year income hits record $2.8 billion.

- Broad-based improvement reflects significantly higher results from all divisions.

- Healthy farm conditions, skillful execution of business plans drive performance.

- Further improvement in sales and profit forecast for 2012.

Net income attributable to Deere & Company was $669.6 million, or $1.62 per share, for the fourth quarter ended October 31, compared with $457.2 million, or $1.07 per share, for the same period last year.

For fiscal 2011, net income attributable to Deere & Company was $2.800 billion, or $6.63 per share, compared with $1.865 billion, or $4.35 per share, last year.

Worldwide net sales and revenues increased 20%, to $8.612 billion, for the fourth quarter and were up 23% to $32.013 billion for the full year. Net sales of the equipment operations were $7.903 billion for the quarter and $29.466 billion for full-year 2011, compared with $6.564 billion and $23.573 billion for the corresponding periods last year.

"John Deere has completed another year of exceptional achievement," said Samuel R. Allen, chairman and chief executive officer. "Our success reflects a continued pattern of strong customer response to our innovative lines of equipment coupled with the skillful execution of business plans aimed at expanding our global competitive position."

During the year, Deere introduced a record number of products and announced plans for six new factories, in China, Brazil and India. "John Deere's record performance is a further tribute to our operating model, which stresses rigorous cost management and asset efficiency," Allen stated. "As a result, we are achieving unprecedented financial results and generating healthy levels of cash flow. These dollars are funding growth throughout the world and also are being shared directly with investors in the form of dividends and share repurchases."

Summary of Operations

Net sales of the worldwide equipment operations increased 20% for the quarter and 25% for the year. Sales included a favorable currency-translation effect of 2% for the quarter and 3% for the year and price increases of 3% for both periods. Equipment net sales in the United States and Canada rose 14% for the quarter and 17% for the year. Outside the U.S. and Canada, net sales were up 31% and 38% for the respective periods, with favorable currency-translation effects of 4% and 7%.

Deere's equipment operations reported operating profit of $955 million for the quarter and $3.839 billion for the year, compared with $716 million and $2.909 billion last year. Results were better for both periods largely due to higher shipment volumes and improved price realization. These factors were partially offset by increased raw-material costs, higher manufacturing-overhead costs related to new products, and higher research and development expenses. In addition, full-year results were impacted by higher selling, administrative and general expenses.

Net income of the company's equipment operations was $552 million for the quarter and $2.329 billion for the year, compared with $357 million and $1.492 billion last year. The same operating factors mentioned above, along with a lower effective tax rate, affected both the quarterly and annual results.

Financial services reported net income attributable to Deere & Company of $122.1 million for the quarter and $471.0 million for the year compared with $98.4 million and $372.5 million, respectively, last year. Results for both periods benefited from growth in the credit portfolio and a lower provision for credit losses, partially offset by narrower financing spreads and a higher effective tax rate. Included in 2010 fourth-quarter results was a write-down of wind-energy assets held for sale to fair value.