Deere & Company said last week production at its Waterloo, Iowa plant will be cut until at least October. The move comes as the world’s largest maker of farm equipment waits for used inventory levels to decrease at many of its dealerships. The Des Moines Register reports work hours at the Waterloo tractor manufacturing facility will drop 20 percent during Deere’s fourth quarter, compared with a year ago. Cuts will be even deeper at its Harvester Works plant in East Moline, Illinois, where the combine facility expects production hours to be down about 60 percent. A Deere spokesperson attributed the move to low commodity prices, weakening farm income and elevated used equipment levels. Overall, agricultural equipment sales are expected to be down 15 to 20 percent this year in the United States and Canada, according to the company.
From the National Association of Farm Broadcasting news service.
From: The De Moines Register
by Donnelle Eller, staff writer for The De Moines Register
Deere & Co. will layoff about 145 production workers in Waterloo and Davenport in September, the maker of the iconic green tractors and combines said.
Moline, Ill.-based Deere said Monday about 115 workers will be laid off indefinitely at Waterloo Works, effective Sept. 23, and about 30 workers will be laid off at the Davenport Works, effective Sept. 30.
The Waterloo plant makes the company’s large tractors and Davenport makes construction equipment such as dump trucks.
The company warned Friday (8/19/2016) the global farm recession and difficult construction equipment markets had impacted earnings, which fell to $489 million, down $23 million from a year earlier.
Deere expects farm equipment sales in the U.S. and Canada to drop be down as much as 20 percent for the year, and worldwide construction and forestry equipment sales are expected to be down 18 percent.
Deere said tractor production at its Waterloo plant would be cut through at least October as it waits for used inventory levels to fall at many of its dealerships. Deere said work hours at the Waterloo facility would be down by 20 percent during its fourth quarter, compared with a year ago.
The company also said it expects to cut production hours at its Harvester Works plant in East Moline, where combines are made, to be down about 60 percent.
Deere has announced cutting 2,000 workers since the ag downturn began two years ago, including 1,000 in Waterloo.
Ken Golden, a Deere spokesman, said the company continues to adjust the size of the company’s production workforce to meet market demand for products manufactured at each of its factories.