Deere Plans 610 Layoffs In Western Illinois
May. 27, 1987
MOLINE, Ill. (AP) _ Deere & Co. might lay off up to 610 production workers by the end of October at two western Illinois factories, a company spokesman said Wednesday.
Because of an expected drop in demand for farm machinery, Deere plans to lay off 50 workers in June at its East Moline Harvester Works, which makes combines, said spokesman Brian Alm.
In addition, sometime in the quarter beginning Aug. 1 Deere plans to lay off 160 production employees at its Moline plant, which makes farm planters, and while furloughing 400 others at East Moline, Alm said.
Alm said the company also was offering special early retirement programs to 250 workers eligible at the two plants. He noted that the more workers who chose early retirement, the fewer would have to be laid off.
Alm said Deere recalled nearly 900 workers at the two plants Feb. 2 at the end of the 163-day strike against the company.
The announcement of the layoffs followed the company's announcement Tuesday of a profit of $35.3 million, or 52 cents a share, in the second quarter ended April 30. That compared with a loss of $28.9 million in the same period a year earlier.
Sales for the quarter ended April 30 rose 12 percent to $1.14 billion, Deere reported.
The company attributed its improved performance to increased activity in all sectors of its manufacturing operations, which include consumer goods, lawn and garden equipment, and agricultural machinery.
For the first six months of its fiscal year, Deere lost $157.2 million on sales of $1.6 billion.