NEW YORK (AP) — Deere & Co. on Friday cut its full-year outlook because it expects the weak agriculture and energy sectors to continue dragging down equipment sales.
The agricultural equipment manufacturer has been facing a downturn in equipment sales as weak commodity prices hold back farmers from buying new equipment. Meanwhile, a weak energy sector has been dragging down construction equipment sales.
The company's stock fell $4.05, or 4.5 percent, to $86.60 in premarket trading.
The Moline, Illinois-based company earned $511.6 million, a 37 percent drop from the same period a year earlier. Earnings of $1.53 per share surpassed Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.47 per share.
The company reported an 18 percent drop in revenue to $6.84 billion in the period, which fell short of Street forecasts. Six analysts surveyed by Zacks expected $7.11 billion.
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Source: Associated Press
