Deere layoffs, crock of crap

This is how recessions get started. Rumors get spread, people believe them, and they loose confidence in the system and quit buying.

The reported Deere layoffs are seasonal and tie in with demand.

someone stated that Deere is big into timber and lawn and garden. Nope, something like 90% is Ag. Not like CAT.

My son works for corporate Deere. Not a big shot, but at least gets some info straight from he horses mouth.


Gene

beggin the pardon but Deere is every big as Cat or bigger in my neck of the woods. Dozers, skidders, dealerships, whatever; maybe you're right worldwide but eastern U.S. & Canada they are big into timber.

I would bet Deere is anywhere from 30-50% construction and timber.

The last place these days to get the truth about a company is from inside the organization.

I would have to go with 2X4 in the south of GA. their Dozers, skidders far out number any other brand. But we only know what we see not what is on the other side of the world.
Have a great tractor day
Larry

Sounds like they have BS him also. You didnt hear what they said in the last couple wks

As a manager in a manufacturing plant for many years. Many times I was required to keep it quiet when there was downsizing in the near future. I seen many people be assured everthing was fine and thier job was safe, then came black monday or black friday, and they were out the door. I hated it. The worst part of that world is having some one your planning on terminating, train in the person that will be replaceing them under the assumption that person is there to relieve thier work load. Any one hear how deep Best Buy cuts will be? I have a few family memebers that work there and am wondering how they will fare getting layed off and having the Beemers, Hummers, and a palace for a home, all on botrrowed cash.

Someone mentioned that working for Deere, he may be the last to know.

I know what you mean there. I hope it isn't serious though. Grandaughter is not quite 2 so he has lot of pairs of shoes to buy yet.

Gene

Better tell the son to tighten his belt, Deere has a big plant that went on line, or soon will. After that, the unions will be worth nothing as everything can be built overseas.

This information came out of the Waterloo Iowa Plant inside the office. Another friend has a girlfriend in The Dubuque Iowa office told him Deere is soon going to be capable to make a major shift in how the overall operation is run.
She has been there since the early seventies, and so was her ex-husband, both upper managment, and get along good. They refuse to give out details in any shape size or form, other than Unions will not be Deeres bigger concern if the project goes down. She has her guard up real good, alceeehol (and lots of it) loosens the lips a little, but she gets the pukes right away after her lips get loose.
By the way she can afford to buy drinks from what I gather.

This same buddies ex-girlfriend worked in the same office, and said mother deere has little out of the pocket money, other than labor invested in that tractor as it comes off the assembly line. After the down payment (makes a deep cut) , most componets that are farmed out, like starters, batteries, steering wheels, farmed out weldedd fabrication componets, etc. are not paid for till they are on the tractor and basicly out the door. That is why their profits are so high, they pretty much use everyone elses money, instead of inventory.

Perhaps you should read JD's website:

http://www.deere.com/en_US/ir/media/pdf/financialdata/reports/2009/2008annualreport.pdf

I had no idea their sales were so volatile.

Job layoffs in this country are for real and more happening right now and that is NO crock of crap. The CRAP CROCK is in DC pushing more jobs out of this country that will never be here again if something isn't reversed! You think those companies are going to rehire union labor and pay stupid overpaid executives to lose money here when they can make more on slave labor and no taxes elsewehere? The roads to Mexico hauling manufacturing machinery are pretty hot right now and it shouldn't be that way. Shows companies have no confidence in their new czar. Government and those companies are sticking it to you the citizens that do nothing about it!

From Deere's 2008 Annual Report

Net Sales:

Agricultural - $16.6 billion (64%)
Consumer - $4.4 billion (17%)
Construction/forestry - $4.8 billion (19%)
Total - $25.8 billion (100%)

For comparison, Cat's total sales were $48 billion in 2008.
Deere 2008 Annual report

don't forget that CAT makes truck engines and is heavy in the stationary engine/generator business as well. Both of those aren't very recession proof.

"Shows companies have no confidence in their new czar."

That's the most unintelligent thing I've read taking it that you're talking about external_link. He's been in less than a week and the trucks have suddenly lined up at the border leaving the US with manufacturing machinery.

Bad economy starts happening when 20,000 Cat workers get laid off. Ask any of them if they think the economy is good. Anybody who lives in a bubble don't think there is ever anything wrong. In other words, if its not happening to me everything must still be good. If my wife still brings home the bacon, must be things are good. If my pension keeps coming in, what could be wrong? People are still building houses in my town so things must be good. I saw a lot of cars at Applebees so things are great. There will always be areas that are exempt from recession no matter what till the last tax dollar is spent on the last government pension participant. And that guy will tell everybody else that things are good. Our area in Michigan is gutted of good paying jobs. Doesn't worry me when somebody on the tv says that the economy is hurting. I'm not that paranoid. What bothers me is when I see at least 10 factories in a 20 mile radius that are history. I don't need a reporter on CNN to tell me that. And the geniouses in Washington that thought all those out of work americans would all get much higher paying hi tech jobs when the manufacturing jobs left the country aren't that dumb. They do live in a bubble though and don't care. Want to see one of those bubbles. Watch The Real Housewives Of Orange County sometime on tv and see how a real bubble works.

Is he in Mexico? Deere is hiring in Mexico.

Cat's getting out of the truck engine business.

He's been in less than a week and the trucks have suddenly lined up at the border leaving the US with manufacturing machinery

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They don't have to line up, Mexican police wave them over the border.

I've seen that one before too. If the managers are saying everything is "X". You can be assured that in reality eveything is "Y".

EPA requirements is not Cat's cup of tea for truck engines. Going to only off road engines.

Good rummor to throw off the JD stocks a few points for the big boy's to make a killing day trading!

Deere equipment engines coming from France in the late 70's by the container lots-seen them. Nothing new about out sourcing componets.

Cummins engine cranks have been coming in from India for years.

These lay-offs are not seasonal but do tie into demand. Construction machinery sales are down (demand) and in talking with a JD Ag dealer in Indiana, he said that farmers have put purchases in neutral. According to him, farmers haven't cancled orders but they have stopped buying. I look for harvester and tractor to lay-off next. Commodities are down, demand will go down, Deere's employment will go down. Their lay-offs will make the news and then people will say:

"This is how recessions get started. Rumors get spread, people believe them, and they loose confidence in the system and quit buying."

That chart doesn't give a seperate value on commercial turf equipment. I would guess it's under the AG category and a big part of it. JD went into the turf equipment business because of slower sales of their AG equipment. A lot less competition than farm equipment. Sure there are a few big ones like Toro and Jacobsen/Ransomes but not like the tractor market. Cat is way bigger than JD in construction equipment and in overall size. Almost twice as big by the chart. Dave