LONDON (ShareCast) - (Sharecast News) - Shares in Deere & Co tumbled on Wall Street on Thursday despite the heavy machinery giant marginally topping third-quarter forecasts, as the sales outlook was trimmed on the back of tough macro conditions.
The company, known for its agricultural and forestry machinery under the brand John Deere, said it now expected net profits to be $4.75bn-5.25bn for the year to end-September, with the midpoint slightly lower than previous guidance of $4.75bn-5.5bn.

The business was facing a "challenging environment", with customers still cautious amid ongoing macro uncertainty.

Deere actually beat analysts' estimates with its third-quarter results, reporting less of a decline than expected to its proactive inventory management.

Revenues fell 9% to $10.36bn in the three months to 27 July compared the year before, marginally ahead of the $10.35bn consensus forecast.

Meanwhile, net profits declined 26% to €1.29bn, with earnings per share falling to $4.75 from $6.29 but not as bad as the $4.58 expected.

"By proactively managing inventory, we've matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs," said John May, chairman and chief executive.

"By continuing to address the high levels of used equipment in the industry, we're building a healthier market for everyone-our customers, our dealers, and our business-even in these challenging times."

The stock was down 8.2% at $471.71 by 1115 ET.

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