|
Deere cutting managers
|
 |
June 28, 2001: 9:43 a.m. ET
Farm and construction equipment maker will shave U.S. salaried staff by 1,250
|
NEW YORK (CNNfn) - Deere & Co. expects to cut 8 percent of its U.S. salaried work force, or about 1,250 jobs, the agricultural and construction equipment maker said Thursday.
The Moline, Ill.-based company expects to save $90 million annually, after taxes, from the cuts and will take a $140 million after-tax charge in its fiscal fourth quarter, which ends in October.
Deere had net income of $485.5 million in fiscal 2000, or $2.06 a share, but analysts surveyed by earnings tracker First Call forecast that will drop to $1.32 a share this fiscal year. The company missed earnings forecasts in its second quarter, and announced production cuts at that time.
As part of its job cut effort, Deere said it will offer an early retirement program to about 2,500 salaried employees later this year. Those who take the offer will leave the company in the last two months of the year.
Click here for a look at manufacturing stocks
"The special early retirement offer is part of ongoing efforts to run lean and enhance our efficiency, competitiveness and financial strength for future growth opportunities," CEO Robert Lane said.
Shares of Deere (DE: up $0.12 to $38.12, Research, Estimates) gained 21 cents to $38 Wednesday. 
|
|
|
|
|
|
Deere & Co.
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
