Agco Shares Tumble After Lowered Profit Outlook

Shares of Agco tumbled 7.6% in premarket trade Tuesday, after the agricultural equipment company cut its profit outlook for the year because of weaker-than-expected demand. Agco cut its full-year outlook to $4.10 to $4.30 a share from a previous target of $5 a share. The revised outlook includes restructuring and other expenses. Agco expects third-quarter per-share earnings of 60 to 65 cents, which also includes a 15-cent benefit for reversing previously recorded long-term stock compensation expense. "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," said Chief Executive Martin Richenhagen. The stock has gained 4% since closing at a near two-year low of $45.31 on Oct. 1 through Monday, but was still down 20% year to date, compared with a 6.3% gain in the S&P 500.