DULUTH, Ga. (AP) -- Farm equipment maker Agco Corp. said Wednesday that its net income grew 12 percent in the third quarter but cut its forecast for the full year in the wake of drought conditions this past summer in North America.
The results missed analysts' expectations and Agco shares fell more than 4 percent,
Company management said sales are being pressured by the worst drought to hit the U.S. in decades, which has decreased demand for tractors and storage units.
"While we don't expect any lasting impacts from the drought, we are experiencing softness in demand for grain storage and protein production equipment as a result of lower crop production volumes," said Agco CEO Martin Richenhagen, in a statement.
For the three months ended Sept. 30, the company earned $94.5 million, or 96 cents per share, compared with $84.4 million, or 87 cents per share, in the prior year period.
Revenue increased 9.3 percent to $2.3 billion from $2.1 billion a year ago.
But analysts surveyed by FactSet expected, on average, earnings of $1.03 per share on sales of $2.4 billion.
Agco lowered its full-year 2012 forecast to $5.20 per share, compared with previous guidance of between $5.50 and $5.75.
Its shares fell $2.07, or 4.4 percent, to $45.50 in late afternoon trading. Its shares traded as high as $54 in late February.