Deere Sees Lower Second-Quarter Earnings

The company said its cuts affect construction, commercial and consumer equipment, as well as large farm tractors.

"Continued caution on the part of customers has prompted our decision to reduce production schedules," Chairman and Chief Executive Robert Lane said in a statement.

The company did not provide a specific earnings forecast for the second quarter ending April 30, but it said results are "likely" to be lower than last year.

The company said it expects unit sales, without acquisitions, to be flat for the quarter, when it had previously expected 5 percent growth. It also reduced its full-year growth projection to 4 percent from 6 percent.

Including the effect of acquisitions, the company said it sees unit sales rising 5 percent for the quarter and 7 percent for the year.

Deere said it plans to shut down its Waterloo, Iowa, tractor-manufacturing plant for a week in April, idling about 2,000 workers. Various other plants are also expected to scale back production.

The company said sales of its construction equipment have been slow through mid-March, and commercial and consumer equipment sales also have been hurt by cold and wet weather.

Deere also said a recent fire at a Davenport, Iowa, storage facility destroyed attachments and commercial grounds-care products. Although the incident is covered by insurance, the company said, it could hurt sales of those products in the short run.

For more information about Deere & Co. visit the company's web site at www.deere.com