- Combines strengths of Agricultural Division and Commercial & Consumer
Equipment Division into single Agriculture and Turf Division
- Aligned regions represent geographies with shared customer
- Five product platforms manage worldwide development, manufacture and
delivery of equipment and solutions
MOLINE, Ill., April 14 /PRNewswire-FirstCall/ -- Deere & Company (NYSE:
DE) today announced a new global operating model that will combine the
technology, expertise, experience, channels and investments of the Worldwide
Agricultural Equipment Division and the Worldwide Commercial & Consumer
Equipment Division into a single unit called the Worldwide Agriculture and
Turf Division, effective May 1, 2009. Through the new operating model, this
combined organization will be positioned to achieve the alignment and
efficiency necessary to develop a more complete portfolio to meet worldwide
customer needs - while reducing overall costs.
The new division's global operating model will leverage common processes,
standards and resources to develop solutions more quickly. It is designed to
enable the division to grow profitably across many geographic markets,
increase its competitiveness, and achieve and sustain exceptional operating
performance - at all points in an economic cycle.
"The new operating approach has been in development since early 2008 -
and is an extension of many of the successful efforts resulting from the
implementation of the SVA model, in place since 2001," said Robert W. Lane,
chairman and chief executive officer. "Products and functions will be formally
realigned to make us more responsive to customer needs and market conditions,
and allow us to work smarter, more effectively, in all that we do. Customers,
suppliers and dealers will find it easier to work with John Deere because of
reduced organizational complexity."
Effective May 1, 2009, the Agriculture and Turf Division unit will have
two presidents: David C. Everitt, responsible for the tractor product and the
turf and utility product platforms; and Markwart von Pentz, responsible for
crop harvesting, hay and forage, and crop care product platforms. In addition,
Everitt will have responsibility for sales and marketing in the regions that
include U.S., Canada, Australia, New Zealand, China, Asia, India, and a
portion of Africa. Von Pentz will have responsibility for sales and marketing
for the rest of the globe including Europe, CIS, the Near and Middle East and
Northern Africa, South America, Central America, and Mexico.
James M. Field, current president of the Commercial & Consumer Equipment
Division will continue reporting to Mr. Lane in a new role as senior vice
president, Deere & Company, with a focus on identifying additional
efficiencies and opportunities across the enterprise.
Deere said it expects this combination of business units to extend
significantly the reach of turf management equipment, utility vehicles, lower
horsepower and lower-spec equipment through improved access to established
global networks. A regional approach also will enable the company to more
closely target specific customer segments effectively and share best
practices. In a related move, the company further announced it will be
transitioning its six U.S. sales branch offices to two centers of excellence
based in Lenexa, KS and Cary, NC.
"The new Agriculture and Turf Division and its global operating model
will allow us to work in new ways, making better and faster decisions, closer
to the customer," Lane said. "Bold steps like this allow us to improve our
competitive position worldwide even during the current economic disruption."
Implementation of these changes is expected to result in pre-tax charges
of approximately $25 million to be recorded primarily in the company's fourth
quarter of 2009. This amount was not reflected in the company's earnings
forecast for 2009 issued last February. As a result of this new operating
model and the combined organization, by September 30, 2009, the company
anticipates reducing approximately 200 salaried positions through voluntary
separations. Today's announcement does not pertain to the Construction &
Forestry Division or John Deere Credit.
John Deere (Deere & Company -- NYSE: DE) is a world leader in providing
advanced products and services for agriculture, forestry, construction, lawn
and turf care, landscaping and irrigation. John Deere also provides financial
services worldwide and manufactures and markets engines used in heavy
equipment. Since it was founded in 1837, the company has extended its heritage
of integrity, quality, commitment and innovation around the globe.
For further information:
For further information: Ken Golden, Director, Strategic Public
Relations of Deere & Company, +1-309-765-5678 Web Site: http://www.deere.com