DOW JONES NEWSWIRES
Deere & Co. (DE) announced 160 indefinite layoffs at its Des
Moines, Iowa, factory, set for later this month due to reduced
demand for the factory's products.
The world's largest maker of farm equipment has been placing
workers at several of its factories, including several other
factories in Iowa, on layoff because of the demand slump.
The 160 layoffs, which are only a small fraction of the
company's work force of roughly 56,700 people, affect workers with
the least seniority and will take place April 27. The Des Moines
Works manufactures tillage, planting, spraying and
cotton-harvesting equipment.
Many farmers have opted to delay buying higher-priced equipment
like tractors ahead of the planting season, leaving sellers stuck
with inventory produced during last year's boom. Crop choices are
also likely to reduce the demand for new farm equipment this year,
industry experts and financiers have said.
An increase in soybean productions and a move away from corn
will reduce farmers' production expenses and put less wear and tear
on tractors, because soybeans don't require the nitrogen fertilizer
needed to grow corn.
Sales of tractors and combines in the U.S. this year are
expected to fall by 5% to 15% from 2008, according to industry
estimates, ending the record rise in revenue and profits
experienced by machinery makers Deere, CNH Global NV (CNH) and Agco
Corp. (AG).
Deere's shares closed Tuesday at $34.98 and haven't traded
premarket.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com