Summary
Deere & Company (DE) announced on January 24, 2006, its decision to close its forestry manufacturing facility in Woodstock, Ontario, Canada, by September 30, 2006. This strategic move aims to reduce costs and enhance product delivery times by consolidating operations into existing facilities in Davenport and Dubuque, Iowa. The company expects to incur approximately $60 million in pre-tax costs associated with this closure, including employee benefits, asset write-downs, and relocation expenses, with an estimated $40 million in pre-tax cash expenditures.
Key Highlights
- 1Deere & Company to close Woodstock, Ontario forestry manufacturing facility by September 30, 2006.
- 2Facility closure is part of a plan to reduce costs and improve product delivery times.
- 3Manufacturing operations will be consolidated into Davenport and Dubuque, Iowa facilities.
- 4Estimated pre-tax costs for closure total approximately $60 million.
- 5Costs include $25 million for pension/retirement benefits, $10 million for termination benefits, $10 million for impairments/write-downs, and $15 million for production relocation.
- 6Estimated pre-tax cash expenditures associated with the closure are approximately $40 million.