Deere Stands By Price Realization

Deere (NYSE:DE) sent the following email about my post about price realization. They felt the comments were harsh to say the least. My approach is plain talk. Price realization is not generally recognized and adds more to the confusion than to the clarity. They claim to be using the term for quite some time and I’ll give them that. But in today’s tough economic times everything is being scrutinized that much more closely so maybe the old terminology does not serve us well.

George:

I noticed your comments concerning the term "price realization" in Deere & Company's earnings release today. Contrary to what you would have your readers believe, Deere did not make up a new term and it certainly is not the first time it has been used by the company. I have been in the role of company spokesperson for a decade and we have referred to "price realization" in our quarterly earnings news releases during that entire ten years. Included below are a few other organizations also using the term. These are links I grabbed in a quick search if the Internet. You have misled your readers to believe Deere is up to some sort of financial term hocus pocus. A consistent observer of the company would realize the term has been part of our public communication for a long period of time.

CATERPILLAR
http://www.forbes.com/2006/04/25/caterpillar-0425markets03.html

BOSTON CONSULTING GROUP:
http://books.google.com/books?id=Bh6xnHslk1UC&pg=PA145&lpg=PA145&dq=Price+realization&source=bl&ots=GtDnQgAk_D&sig=ydwqQgisWubK5Rr5t3TfNqF6vxM&hl=en&ei=voIUSuDGFuLflQfwkJXWAw&sa=X&oi=book_result&ct=result&resnum=2

DISTRIBUTION MANAGEMENT:
http://www.mdm.com/issues/36_17/features/3337-1.html


Ken Golden
Director, Strategic Public Relations | Deere & Company
309-765-5678 (office) | 309-230-7626 (mobile)