18 August 1999
John Deere cuts production
JOHN DEERE, the US tractor maker, is cutting production after a slump in third-quarter profits.
The group said it was expecting demand in its home market to drop by up to 30% in 1999.
It has taken the decision to cut production on the back of low grain and oilseed prices, drought in some eastern areas of North America and uncertainty how much financial aid the federal government would provide to the US farm sector this year.
Deere expects its main US agricultural equipment factories will be closed for one-third of working days in the final quarter of 1999 as a result of the cutbacks.
The company is carrying out a voluntary redundancy programme and taking a charge of up to $80 million (£48m) in the fourth quarter.
After-tax profits in the third quarter to July, fell to $68.9m from $290.8m (£182m) last time. Sales dropped from $3.69bn to $3.04bn (£1.9bn). The worldwide agricultural division reported an operating loss of $8m.
- Farm slump hits John Deere, FWi, 17 February, 1999
- Financial Times 18/08/99 page 24