4 September 1998

Deeres record

DEERE & Co report a record third quarter net income for the three months ended 31 July – $290.8m compared with $252.7m for the same period last year.

The company says this represents an increase of 15% in net income and puts this growth down to a continuation of demand for company products, as well as cost reductions and progress in quality initiatives.

But with regard to the companys agricultural equipment operations, the downward trend in worldwide farm commodity prices Deere expects demand for agricultural equipment to decline for the rest of 1998 and 1999.

As a result, production schedules have been reduced in the fourth quarter of this year and are expected to be reduced next year.