said Wednesday that its third-quarter earnings fell.
The Duluth, Ga., maker of agricultural equipment said earnings dropped to $5.4 million, or 6 cents a share, in the quarter, compared with $27.8 million, or 31 cents a share, in the year-ago period. Adjusted for restructuring and other expenses, the company earned 7 cents a share. Analysts polled by Thomson First Call were expecting loss of penny a share.
Sales slid 4.3% from a year ago to $1.18 billion with increased sales in Europe/Africa/Middle East regions partially offsetting the declines in the North America, South America and Asia/Pacific regions. Analysts were expecting sales of $1.14 billion.
"As we previously announced, our results were negatively impacted by weaker markets in both our North American and Asia/Pacific segments," the company said. "In addition, the continued reduction of dealer inventories in North America resulted in lower sales and operating income in the region. This reduction is part of our plan to reduce both inventory and accounts receivable throughout the year. As of September 30, 2006, our worldwide inventory and accounts receivable were approximately $250 million lower than September 2005 levels."
Agco said it was targeting full-year earnings of about $1.00 a share. The company expects sales in 2006 to decline 2% to 3% compared with 2005 levels based on lower industry demand and planned dealer inventory reductions. Analysts are expecting earnings of 98 cents a share on revenue of $5.26 billion.
Shares of the company rose $1.44, or 5.38%, to $28.23 Wednesday.
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