Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Deere to lay off 163 U.S. workers as trade war dents equipment demand

Stock MarketsOct 01, 2019 06:12PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Equipment for sale is seen at a John Deere dealer in Denver

By Rajesh Kumar Singh

CHICAGO (Reuters) - Deere & Co (N:DE) on Tuesday announced indefinite layoffs for 163 U.S. manufacturing workers at plants in Illinois and Iowa that make agricultural, forestry and construction equipment, citing decreased customer demand.

The layoffs come weeks after the company said it would reduce production by 20% at its facilities in Illinois and Iowa in the second of half of the year to keep inventory in line with retail demand.

The world's largest farm equipment maker is reeling from the fallout of the U.S.-China trade war that has slowed purchases from farmers.

Meanwhile, lingering trade tensions have inhibited manufacturing activity and investment in nonresidential construction.

Weaker demand in the latest quarter dented its earnings, forcing Deere to trim its full-year earnings forecast and initiate a review of costs.

In August, the Moline, Illinois-based company said it was assessing its manufacturing footprint as part of the cost structure review.

In an emailed response, Deere said 50 production employees at Harvester Works, which makes large agriculture equipment, in East Moline, Illinois, would be put on indefinite layoff. Separately, 113 workers would be laid off for an indefinite period at its construction and forestry plant in Davenport, Iowa.

Deere's shares closed on Tuesday down 1.9% at $165.50.

The year-long tariff war between the United States and China has slashed the export earnings of American farmers. China imported $9.1 billion of U.S. farm produce in 2018, down from $19.5 billion in 2017, according to the American Farm Bureau.

U.S. shipments to China of soybeans, the country's most valuable farm export, sank to a 16-year low last year as Beijing shifted purchases mostly to Brazil, leaving American farmers with a surplus.

Deere has said it expects industry sales of agricultural equipment to be about the same as last year in the United States and Canada, which account for 60% of its overall business. Sales in the region were earlier projected to be flat to up 5% earlier.

(This story has been refiled to add dropped letter in paragraph two.)

Deere to lay off 163 U.S. workers as trade war dents equipment demand
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
EKL Teo
EKL Teo Oct 01, 2019 6:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trade war is a suicide move?
Erski Gumby
SB20 Oct 01, 2019 6:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trade war is a necessity to bring balance...
Chris Jackson
Chris Jackson Oct 01, 2019 6:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Erski Gumby Where's the balance?
Erski Gumby
SB20 Oct 01, 2019 6:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Chris Jackson Exactly. That’s why there is a trade war.
Chris Jackson
Chris Jackson Oct 01, 2019 6:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Seems to be only hurting middle&lower class
Erski Gumby
SB20 Oct 01, 2019 6:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Chris Jackson How is middle class hurting? The only thing hurting the middle class is the salary gap within the corporations.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email