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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: September 14, 1998
(Date of earliest event reported)
D E E R E & C O M P A N Y
(Exact name of registrant as specified in charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-4121
(Commission File Number)
36-2382580
(IRS Employer Identification No.)
One John Deere Place
Moline, Illinois 61265
(Address of principal executive offices and zip code)
(309)765-8000
(Registrant's telephone number, including area code)
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(Former name or former address, if changed since last report.)
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Page 1 of 6 pages.
The Exhibit Index appears at Page 4.
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Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
(99) Press release.
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Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
DEERE & COMPANY
By: /s/ Frank S. Cottrell
Frank S. Cottrell, Secretary
Dated: September 14, 1998
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Exhibit Index
Sequential
Number and Description of Exhibit Page Number
(99) Press release. Pg. 5
EXHIBIT 99
DEERE
LOGO
DEERE EXPECTS SOLID PERFORMANCE DESPITE A LOWER FARM EQUIPMENT INDUSTRY OUTLOOK
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For Immediate Release (14 September, 1998)
MOLINE, IL -- Deere & Company today updated its outlook for the
remainder of its fiscal year ending October 31, 1998 and for 1999.
In 1998, the company expects to achieve double-digit growth in earnings
per share and record sales and earnings, despite a fourth quarter performance
anticipated to be lower than the prior year. In response to recent declines in
farm commodity prices and to continue its excellent asset management, Deere said
it would further adjust agricultural equipment production to customer demand.
Production schedules now reflect a 4-5 percent fourth quarter
year-to-year decline in physical volume. For the full year, however, physical
volume is anticipated to be up 8 percent.
In addition, during the fourth quarter, the company plans to strengthen
reserves for transportation insurance operations. Insurance is projected to be
profitable for the year, nevertheless.
The challenges faced by the company for 1999, a spokesperson said,
include deteriorating worldwide agricultural commodity prices resulting from
expected increases in global carryover stocks of grains and oilseeds.
The company expects North American industry retail sales of
agricultural equipment to be down 15-20 percent in 1999. Future production
schedules will be consistent with this lower level of demand, the spokesperson
said. The company will endeavor to keep layoffs to a minimum, looking to
attrition and retirements to help maintain an appropriate work force level.
"Over the past few years, we have worked hard to keep our permanent
employment base at efficient levels, reduce our overhead costs, aggressively
manage our asset base and position ourselves to be able to perform well in the
event of an economic downturn," said Hans W. Becherer, chairman and chief
executive officer.
"Additionally, global initiatives in process improvements and supply
management are producing solid returns. The company anticipates achieving its
$100 million goal in reduced costs in 1999 through these efforts," he added.
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"It is gratifying to see that the company has become more efficient and
productive, permitting us to respond quickly to this type of economic change. As
a result, 1998 earnings per share will be at record levels. And, though it will
be challenging, we have set a goal of matching our 1998 earnings per share
performance in 1999," said Becherer.
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