SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 29, 1999
(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)
_______________________________________
(Former name or former address, if changed since last report.)
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Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
(c) Exhibits
(99) Press release and additional information.
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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: April 29, 1999
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Exhibit Index
Sequential
Number and Description of Exhibit Page Number
(99) Press release and additional information Pg. 5
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EXHIBIT 99
Contact: For more information:
Gregory T. Derrick
Deere & Company
309/765-5290
e-mail: [email protected]
FOR IMMEDIATE RELEASE
DEERE REDUCES VOLUME FORECAST
DUE TO DEPRESSED FARM CONDITIONS
MOLINE, IL (April 29,1999) -- Deere & Company today said
it expects the physical volume of sales for its second
quarter, ending April 30, to be approximately 20 percent lower
than in last year's comparable period. The company's previous
estimate was for a 13 percent reduction. Deere defines
physical volume of sales as worldwide equipment sales adjusted
for changes in pricing and foreign currency exchange rates.
The forecast change was attributed to reduced farm
equipment demand caused by a continuation of depressed
agricultural commodity prices. According to Deere, the
softest area of demand continues to be the large-size, high-
margin agricultural equipment segments, in which the company
has a particularly strong position. In spite of these adverse
factors, Deere said its market share had increased on many
product lines. The company also cited unusually aggressive
discounting by competitors in the construction equipment
market.
Deere stated that it remains committed to balancing
agricultural equipment inventories and receivables with the
lower levels of demand and, therefore, expects to make further
reductions in farm-machinery production schedules in the
coming months.
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Deere now anticipates that physical volume for fiscal
1999 will decline by approximately 18 to 20 percent from 1998
levels, compared with the previous estimate of 13 to 15
percent. The yearly estimate is based on factors that
continue to be subject to rapid changes, the company stated.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995. Statements herein which relate
to future operating periods, are subject to important risks
and uncertainties that could cause actual results to differ
materially. Forward- looking statements relating to the
company's businesses involve certain factors that are subject
to change, including: the many interrelated factors that
affect farmers' confidence, including worldwide demand for
agricultural products, world grain stocks, commodities prices,
weather conditions, real estate values, animal diseases, crop
pests, harvest yields and government farm programs; general
economic conditions and housing starts; legislation, primarily
legislation relating to agriculture, the environment, commerce
and government spending on infrastructure; actions of
competitors in the various industries in which the company
competes; levels of new and used field inventories; production
difficulties, including capacity and supply constraints;
dealer practices; labor relations; interest and currency
exchange rates (including the effect of conversion to the
euro); technological difficulties (including Year 2000
compliance); accounting standards and other risks and
uncertainties. Economic difficulties in Asia and other parts
of the world could continue to adversely affect North American
grain and meat exports. The number of housing starts is
especially important to sales of construction equipment. Sales
of commercial and consumer equipment during the spring are
affected by spring weather patterns. The company's outlook is
based upon assumptions relating to the factors described
above, which are sometimes based upon estimates and data
prepared by government agencies. Such estimates and data are
often revised. Further information concerning the company and
its businesses, including factors that potentially could
materially affect the company's financial results, is included
in the company's most recent quarterly report on Form 10-Q and
other filings with the Securities and Exchange Commission.
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