NEW YORK, New York (Reuters) – Farm equipment maker Agco Corp. cut its 2009 earnings forecast citing weak demand in Western Europe, and said it could post a net loss in the third quarter, sending its shares down nearly 12 percent.
“We are experiencing lower-than-anticipated levels of demand in our European operations, especially in the important markets of Germany, France and the United Kingdom,” chief executive officer Martin Richenhagen said in a statement. “We are making more aggressive cuts in our production schedule than previously discussed.”
The announcement was the latest sign that the farm sector, which had been largely insulated in 2008 from the worldwide economic downturn, is no longer immune as lower commodity prices and falling demand for equipment take a toll on the sector.
It follows word from industry leader Deere & Co. that it was laying off more than 367 workers at its primary harvester factory in East Moline, Illinois, and would idle most of the plant’s other employees for a month, because of reduced demand for combines.
