Deere first quarter earnings down 43% - KWWL - Eastern Iowa Breaking News, Weather, Closings

Deere first quarter earnings down 43%

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WATERLOO (KWWL) -

Deere & Company released its earnings report on Friday, showing net income at $387 million for the first quarter, which is down from $681 million for the same time last year.

"Deere's first-quarter performance reflected sluggish conditions in the global farm sector, which reduced demand for agricultural machinery, particularly larger models, and led to lower sales and income," said Samuel R. Allen, chairman and CEO.

Four weeks ago Friday, Deere announced several hundred layoffs within the company, including 565 in Waterloo.

KWWL asked the company if workers should be concerned based on this report and if Deere could rule out further layoffs in eastern Iowa for the second quarter. "Today's results do not support a statement that people would speculate more layoffs. Our results announced today and the forecast we made are in line with what we had expected," said Ken Golden, director of Global Public Relations for Deere & Company.

"The layoffs recently announced were made with the current market conditions in mind. As we have said in the past, we will adjust the size of our manufacturing workforce to market demand for our products and will keep our employees informed about changes," said Golden.

The company spelled out many things that can impact business, which included the following statement: "Customer and company operations and results could be affected by changes in weather patterns (including the effects of drought and drier than normal conditions in certain markets); the political and social stability of the global markets in which the company operates; the effects of, or response to, terrorism and security threats; wars and other conflicts and the threat thereof and the response thereto; natural disasters; and the spread of major epidemics."

KWWL asked Golden about that statement. "Deere pays close attention to world events and reacts accordingly. We are not being impacted by terrorism activities," said Golden.
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