Deere & Co reported a higher-than-expected profit in its third quarter, which ended July 31, as improved profitability in its core agriculture machinery business helped offset weakness in construction and forestry equipment, Reuters reported. But the company said it expected to barely break even in the current quarter, sending its shares lower in pre-market trade.

The world’s largest maker of tractors and harvesters, which is cutting production in anticipation of lower demand next year, reported a third-quarter profit of $420 million, or 99 cents a share, down from $575.2 million, or $1.32 a share, last year. Sales fell 24 percent to $5.89 billion.

Analysts, on average, had expected the company to report a profit of 56 cents per share on sales of $5.27 billion.

Analyst Eli Lustgarten of Longbow Research called the results “a clean beat,” although 20 cents of the earnings came from non-operating items, including a lower tax rate. The Moline, Ill.-based company reiterated its forecast for a full-year net profit of “approximately $1.1 billion.” Because Deere has already reported earnings of $1.1 billion for the first nine months of the year, the guidance implied a break-even or possibly even a marginally unprofitable fiscal fourth quarter.

“They’re burying the fourth quarter with these production cuts,” Lustgarten said. “And so their guidance is for a marginally break-even quarter.”

Analysts had expected Deere to report a fourth-quarter profit of 33 cents a share, according to Reuters estimates. Deere shares were trading at $44.60 in pre-market trading, down from Tuesday’s close of $45.09.