Agco Cuts Outlook, Shares Down 8%

(RTTNews) - Shares of Agco Corp. (AGCO) Tuesday tanked 8 percent, after the agricultural equipment maker slashed its profit guidance for the full year, reflecting production and cost cuts made amid weak sales of farm equipments.

Chief Executive Martin Richenhagen said, "During the third quarter, we experienced weaker than anticipated levels of demand and are responding by making more aggressive cuts in production schedules and expenses."

The Duluth, Georgia-based company now expect full-year earnings of $4.10 to $4.30 per share, down from its prior outlook of about $5.00 per share. On average, 20 analysts polled by Thomson Reuters currently expect earnings of $4.82 per share for the year. Analysts' estimates typically exclude one-time items.

Agco said it now expects third-quarter earnings of $0.60 to $0.65 per share, including a benefit of $0.15 per share from reversal of previously recorded stock compensation expenses. Analysts currently estimate third-quarter earnings of $0.81 per share.

AGCO is currently trading at $43.40, down $3.70 or 7.86% on the Nasdaq.