Deere issues profits warning


15 September 1998


Deere issues profits warning


US farm machinery maker Deere & Co has issued a profits warning. A company statement said that lower than forecast profits were expected for the fourth fiscal quarter to 31 October.

It said North American sales of its agricultural equipment were expected to fall by up to 20% next year because of falling commodity prices.

The company blamed falling commodity prices on expected increases in carry-over stocks of grains and oilseeds from this years crop. It said bumper crops in the Americas and a fall in demand from Asia were the main factors behind the expected increase in inventories.

It said it planned to reduce costs by £100m next year which would affect staffing levels.

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