Deere names new chief executive

Deere & Co., the Moline, Ill.-based manufacturer of lawn, landscaping, agricultural, forestry and construction equipment, has named Samuel Allen as its new chairman and CEO, effective Aug. 1. Allen will assume the titles of president and chief operating officer on June 1. The 55-year-old executive will replace Robert Lane. No reason was given for Lane’s departure, although the company said the change has been planned for 18 months.

Allen will become the ninth chief executive in the company's 172-year history. Allen has worked for John Deere for 34 years, most recently as president of the worldwide construction & forestry division. Other responsibilities included senior positions in John Deere’s power systems, credit operations, intelligence solutions group, human resources, industrial relations the agricultural division and consumer products.

In a prepared statement, Allen said he was honored to take the helm, and added: "We have significant challenges but exciting global opportunities."

One of those challenges was reflected by recent layoffs at the John Deere Ottumwa Works in Iowa. Of the total production work force, 494 will go on indefinite layoff effective June 29, while the remaining 195 will face "periodic inventory adjustment layoffs throughout the next several months," the company announced June 2.

The Ottumwa Works manufactures balers, mower conditioners, windrowers and pull-type forage harvesters used by hay and livestock producers.

In its most recent quarter ended first quarter ended April 30, the company posted net income of $472.3 million, down 38.1% from $763.5 million in the same quarter last year. Revenues declined 17% to $6.784 billion.

Deere & Co. also announced the promotion of Michael Mack, the SVP and CFO, to take Allen’s place as president of the worldwide construction & forestry division.