Deere's falling earnings lead to additional shutdowns. (News Briefs).Deere & Company experienced a 58 percent drop in third-quarter earnings. Deere reported worldwide net income of $71.8 million for the third quarter and $256.1 million for the nine months of the company's fiscal year, which ended July 31, compared to $172.4 million for the quarter and $414.4 million for the first nine months last year. The worldwide agricultural equipment division reported operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $115 million for the quarter and $335 million for the first three quarters, compared with $158 million and $332 million for the same periods last year. Deere said the decrease in third quarter profits for the ag division was due to lower production and sales of large tractors, plus the increase in R&D which resulted in a record number of new products introduced to dealers in July in Albuquerque, N.M. The company says it has taken aggressive actions to "balance its production schedule with retail sales" by scheduling inventory adjustment shutdowns of its large row crop and 4WD product lines in Waterloo, Iowa Waterloo is the county seat of Black Hawk County, Iowa, United States. As of the 2000 census, the city had a total population of 68,747. It belongs to the Cedar Falls-Waterloo Metropolitan Statistical Area, and is the larger of the two cities, by population. , for the weeks of September 10, 17 and 24. However, while the plant was idle, the new automated guided vehicle The Automated Guided Vehicle (AGV) is a mobile robot used in industrial applications to move materials from point to point. Introduction Automated guided vehicles (AGVs) help to reduce costs of manufacturing and increase efficiency in a manufacturing system. system for the large row crop chassis Pronounced "chah-see," it is a physical structure that holds everything or that everything is attached to. A computer's cabinet is often called the chassis. line was installed. In addition, the small row crop, large row crop and 4WD lines scheduled shutdowns for the weeks of October 15 and 22. These shutdowns are the first this year to affect the small tractor tractor, in agriculture, vehicle used to pull such equipment as plows, cultivators, and mowers; to power stationary devices such as saws and winches; and to push snowplows and earth-moving implements. line, although the other two lines have shut down for inventory adjustment three weeks since April. The shutdowns will idle the company's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. factories for about 25 percent of the available days in the fourth quarter. Deere is forecasting its sales volume to be down 14 percent for the fourth quarter and two percent for the fiscal year. As for profit margins, including the estimated $140 million after-tax cost of the early-retirement program, the company projects breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations performance for the full year. |
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