For the full year, net income was $1.694 billion, compared with $1.447 billion a year ago. Full-year income from continuing operations was $1.453 billion, or $6.16 per share, compared with $1.414 billion, or $5.74 per share, last year.

“Our strong results for the final quarter of 2006, and for the full year, provide mounting evidence of our success in building a fundamentally more agile and profitable business, while introducing advanced new products and services to a growing global customer base,” said Robert W. Lane, chairman and chief executive officer. “We are particularly encouraged that the company achieved record net income for the year and strong cash flow in the face of market conditions that have been relatively weak in many parts of the world.”

Net sales of the worldwide equipment operations were essentially unchanged for the quarter and two percent higher for the full year. Equipment sales in the U.S. and Canada were six percent lower for the quarter and three percent higher for the year. Net sales outside the U.S. and Canada increased by 14 percent for the quarter and two percent for the year, including a positive currency-translation effect of two percent for the quarter and a negative effect of one percent for the year.

Deere?EUR??,,????'???s equipment divisions reported operating profit of $276 million for the quarter and $1.905 billion for the year, compared with $224 million and $1.842 billion for the same periods last year. Higher operating profit for the quarter was primarily the result of improved price realization and lower warranty expenses, partially offset by higher selling and administrative expenses, increased raw-material costs, and the impact of lower shipping and manufacturing volumes. Operating profit for the year was higher due to improved price realization and lower retirement-benefit costs. Partially offsetting these factors were increased raw-material costs, higher selling and administrative expenses, the impact of lower shipping volumes, and increased spending for research and development.