DOW JONES NEWSWIRES
Agco Corp. (AGCO) projected third-quarter results below
analysts' expectations as it slashed its 2009 forecast again on
Wednesday, citing weaker-than-expected international results.
Shares fell 7.7% premarket to $30.05. The stock, which was up
38% this year through Tuesday, but down 35% over the past twelve
months.
Agco, whose brands include Massey Ferguson and Challenger, said
it has seen weak demand in Europe - especially Germany, France and
the U.K. - during the quarter.
The company forecast third-quarter earnings would be at or
slightly below breakeven on a sales drop of 30% to 35%. Analysts
polled by Thomson Reuters recently projected a 44-cent profit and a
26% revenue decline to $1.54 billion.
For the year, the company now expects earnings of $1.30 to $1.50
a share and a net sales drop of 23% to 25%. Agco in July narrowed
its already reduced profit target to between $2 and $2.25 a share
while cutting its revenue view to $6.5 billion to $6.8 billion.
Last year's revenue was $8.42 billion.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com