NEW YORK – Deere took a hit in the second-quarter due to a weak global farm economy and a downturn in construction equipment sales.
The agricultural equipment maker also gave a weak third-quarter outlook and lowered its full-year forecast.
The company's profit tumbled 28 percent to $495.4 million, or $1.56 per share. That's still a dime better than the per-share expectations on Wall Street, according to a survey by Zacks Investment Research.
Revenue fell 4 percent to $7.11 billion in the period, which also topped Street forecasts.
But shares edged lower because the Deere said it expects low commodity prices and stagnant farm incomes to continue weighing down revenue throughout the year. Equipment sales are projected to dip about 12 percent in the third quarter from the same period a year prior.
Full-year income is expected to be about $1.2 billion, down from a previous forecast of about $1.4 billion.
Shares of Deere & Co., based in Moline, Illinois, have risen almost 8 percent since the beginning of the year. They fell about 1 percent before the opening bell Friday.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DE at http://www.zacks.com/ap/DE
Keywords: Deere, Earnings Report