UPDATE: Deere Posts Upbeat FQ3 Profit, Lowers FY14 Forecast

Shares of Deere & Company (NYSE: DE) dropped more than 1% in pre-market trading after the company cut its profit forecast. However, the company reported better-than-expected fiscal third-quarter profit.The Moline, Illinois-based company posted its third-quarter profit of $850.7 million, or $2.33 per share, versus a year-ago profit of $996.5 million, or $2.56 per share. Its sales declined 5% to $9.5 billion. Net sales of the equipment operations dropped to $8.723 billion in the quarter, versus $9.316 billion. However, analysts were expecting a profit of $2.20 per share on sales of $8.71 billion. Equipment net sales in the US and Canada fell 8% in the quarter, while sales outside the US and Canada declined 4%.Agriculture & Turf division sales dropped 11% in the quarter, while Construction & Forestry sales rose 19%.Deere now projects FY14 net profit of $3.1 billion, versus its earlier outlook of $3.3 billion. It also expects equipment sales to fall about 6%.Financial services posted net income of $162.3 million in the quarter, up from $150.0 million."Deere's third-quarter performance reflected moderating conditions in the global farm sector, which have negatively affected demand for farm machinery and contributed to lower sales and profits for our agricultural-equipment business," said Samuel R. Allen, chairman and chief executive officer.Deere shares fell 1.13% to $85.50 in pre-market trading.