CORRECTED-UPDATE 3-Deere shares fall 8 pct following weak 3rd-qtr results

Fri Aug 21, 2015 10:18am EDT
 
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(Corrects percent figure in headline)

By Meredith Davis

Aug 21 (Reuters) - Deere & Co reported that third-quarter profit tumbled 40 percent on weak demand for agricultural equipment and a stronger dollar, and gave a bleaker forecast for fourth-quarter equipment sales, sending shares sliding more than 8 percent.

Lower commodity prices and falling farm incomes continued to pressure demand for agricultural machinery, with the declines most pronounced in higher-horsepower models, the company said on Friday. It also cited lower demand for construction equipment.

Farm and turf equipment sales, which account for more than two-thirds of total revenue, fell 24 percent to $5.31 billion in the third quarter ended July 31.

Sales in the construction and forestry segment decreased by 13 percent to $1.53 billion.

Net income slid to $511.6 million, or $1.53 per share, from $850.7 million, or $2.33 per share, a year earlier.

Total revenue declined 20 percent to $7.59 billion.

The company revised lower its outlook for fiscal 2015 net income to $1.8 billion from $1.9 billion.   Continued...