(Reuters) – Shares of CNH Industrial (NYSE:CNH) fell more than 10% premarket on Friday, after the farm and construction equipment maker missed third-quarter profit estimates and cut its 2024 profit forecast due to weak demand and reduced dealer inventory requirements.
The company trimmed its annual adjusted profit view to the range of $1.05 to $1.15 per share from $1.30 to $1.40 expected earlier, lowering the forecast for the third consecutive quarter.
CNH expects annual sales at its agriculture segment to be down between 22% and 23% from a year earlier, compared with a prior view of down 15% to 20%.
A record crop harvest has kept grain inventories elevated and pressured crop prices, which, coupled with higher input costs, has prompted farmers to delay their equipment purchasing decisions.
This delay, in turn, has forced dealers to moderate their product restocking, causing equipment makers such as CNH Industrial to reduce production.
However, the Basildon, UK-based company’s quarterly revenue, though down 22.3% at $4.65 billion from a year ago, beat analysts’ average estimate of $4.58 billion, according to data compiled by LSEG.
Persisting weakness in farm incomes around the world has dented the demand for new equipment in most global markets.
Sales for CNH’s tractors declined 12% in South America during the third quarter, while falling 20% in Europe, Middle East and Africa. Its combine sales fell 32% and 50% in the two regions, respectively.
CNH, which is known for its New Holland brand of farm equipment, posted an adjusted third-quarter profit of 24 cents per share that fell short of the estimates of 27 cents.
Peer AGCO on Tuesday also provided its full-year profit and revenue forecasts below estimates, hurt by weak demand across regions as lower farm income persists for crop producers.