John Deere

Introduction:

In 1847 John Deere promised, "I will never put my name on a product that does not have in it the best that I have in me." For more that 157 years John Deere has remained true to that commitment -- building their reputation by building value into every machine that bears their name. So you can count on equipment that's as productive as possible. Up and ready to work when you are. And designed to minimize your daily operating costs. Nothing Runs Like a Deere™

General Industry Information:

Company Information:

One of the five oldest companies in the United States, Deere and Company is the world's largest manufacturer of agricultural equipment and a major U.S. producer of construction, forestry, and lawn equipment. The company has factories throughout the world and distributes its products in more than 160 countries through independent retail dealers-nearly 5000 worldwide. It is also active in financial services. Deere has been an industry innovator since John Deere introduced the first successful self-cleaning steel plow in 1837. At that time most Americans lived on farms; now many of Deere's customers belong to the upper 5 percent of the nations farmers, who take in 80 percent of the net farm income; these farmers run huge farms and require sophisticated equipment.

Close behind apple pie and the Fourth of July in recognizable symbols of Americana runs a golden deer. In the 167 years since it was founded, John Deere & Company has worked its way to becoming one of the most recognized, respected and trusted of American brands.

Farm brands like John Deere or CASE have been proudly worn on the hats and coats of farmers for generations, and more importantly for the brands, nearly all of these supporters also own a piece of the brand's farm equipment. With nearly a quarter of 2003 sales outside North America, Deere & Company is banking that the sons of fathers and grandfathers now using its equipment on other continents will carry its brand through the 21st century. There may be a day when nearly every farmer along the Yangtze sports a green and gold Deere cap. Deere & Company has a historical base to grow on, which other agricultural equipment companies lack. Over the years competitors have bought the farm but some still strive to compete. However, the proven accuracy of Deere's tagline: "Nothing Runs Like a Deere" remains true to this day, and makes it difficult to compete on much more than price. As Chairman and Chief Executive Officer, Robert W. Lane said in a speech on April 14, 2003, "The John Deere brand is recognized around the world as a symbol of high-quality products, as well as fair-minded, honorable people who aim to deliver genuine value." From a one-man blacksmith shop in Grand Detour, Illinois, John Deere has grown into a worldwide corporation, doing business in over 160 countries and employing 43,000 people around the world. Ten years after developing the first commercially successful self-scouring steel plow that shed the rich Midwest soil automatically from its blade, John Deere was producing 1,000 plows a year. At that time, John Deere established a factory along the Mississippi River in Moline, Illinois, which helped the Quad-City area of Illinois and Iowa grow into one of the largest farm implement manufacturing centers in the US. Deere & Company International Headquarters are still located there today. During the depression, Deere achieved $ 100 million in gross sales for the first time in its history. In 2002, revenues reached $ 14 billion, a 5 percent gain in total revenue over a down year in 2001. Deere now embraces commercial and consumer equipment like lawn and grounds-care machinery, forestry and construction products as well as engines and internal components that run other products across the globe. In addition, the brand has branched into financial and health institutions through its credit and health divisions. Lane's speech underlined the company's commitment to continued growth through careful management. "Our current actions set the tone for how a lean, well-disciplined enterprise -- one committed to higher efficiency and lower asset intensity -- should do business," Lane said. "It's the kind of company we are determined to become. Our goal is to build a business and an investment worthy of the quality products we make and the uncommonly dedicated people who make them." The growth of Deere & Company mirrors the growth of large-scale farming in the American Midwest but luckily, thanks to global expansion, the brand is not solely dependent on the declining US farming market. In the last ten years, Deere has built, acquired or formed joint ventures for on-site manufacturing in Germany, China, Brazil, India, South Africa, Finland, Sweden and Mexico. Meanwhile, Deere & Company hasn't abandoned its own community. The company contributed to the redevelopment of downtown Moline, Illinois, which had gone into a dilapidated period when manufacturers like Farmall, J.I. CASE, and Caterpiller went under or pulled out of the area in the recession of the 1980s, dealing a serious blow to the blue-collar work base of the Quad City area. Since the mid-90s, downtown Moline has begun a steady climb out of a decade of seediness and disrepair. With the help of Deere and its construction of the John Deere Commons and the John Deere Pavilion, which has an impressive display of antique farming equipment, an architectural and business renaissance of sorts has come to the downtown area along the river. One of the latest developments of Deere has been the creation of the TPC golf course at Deere Run, which annually supports the John Deere Classic PGA tournament. Another opportunity for Deere to sport its distinct yet recognizable logo. Through economic ups and downs, Deere & Company remains a strong company with an unfaltering brand. Looks like nothing runs like a Deere, and nothing has a chance of slowing it down.

Today Deere and Co. group's principal activities are categorized into four major business segments, namely: Agriculture equipment, Commercial and consumer equipment, Construction and forestry, and Credit. Agricultural equipment segment manufactures and distributes equipment for commercial and residential uses including small tractors for lawn, garden, commercial and utility purposes. Construction and forestry segment manufactures and distributes a broad range of machines used in construction, earthmoving, material handling and timber harvesting. Credit segment primarily finances sales and leases by the Groups dealers of new and used agricultural, commercial and