AGCO Corp., a maker of agricultural equipment, fell to the lowest in almost six months after the company cut its 2014 earnings forecast and posted lower second-quarter profit.
The shares slid 2.5 percent to $50.72 at 10:45 a.m. in New York. Earlier they fell as low as $50.52, the lowest intraday since Feb. 6. The shares have declined 14 percent this year.
Shares fell as the Duluth, Georgia-based company said sales in the three months though June fell 9.8 percent to $2.8 billion, compared with about $3 billion a year earlier. Net income fell to $1.77 a share, down from $2.15. AGCO cut its 2014 earnings forecast to $5 a share from a $6 as a decline in commodity prices curbed sales in the Asia-Pacific region, Europe, Africa and the Americas.
“In the second quarter, AGCO faced more challenging market conditions,” AGCO Chief Executive Officer Martin Richenhagen said in the statement. “Falling commodity prices negatively impacted farmer sentiment, and demand for agricultural equipment softened across end markets in North America and Europe while remaining weak in South America.”