Earnings

Deere quarterly earnings drops; lowers 2016 income outlook

A John Deere 8600 tractor is displayed on opening day of the World Ag Expo on February 10, 2015 in Tulare, Calif.
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Deere posted lower quarterly earnings on Friday as a weak global agricultural sector and soft demand in the North American energy sector slowed farming and construction equipment sales.

Net income attributable to Deere fell to $254.4 million, or 80 cents per share, in the first quarter ended Jan. 31, compared with $387 million, or $1.12 per share, a year earlier.

The company forecast sales to fall about 10 percent in fiscal 2016 and earnings of $1.3 billion.

It had previously forecast that sales would fall 7 percent in 2016 with net income attributable to Deere of about $1.4 billion.

Analysts, on average, had expected a profit of 70 cents per share, according to Thomson Reuters I/B/E/S.

Shares of Deere fell nearly 3 percent in premarket trading immediately following the report. (Get the latest quote here.)

CNBC contributed to this report.