Deere & Company, world’s biggest manufacturer of farm equipment, reported a 27 per cent drop in its fiscal third-quarter profit, citing worldwide economic slump responsible for the declined sales of its tractors, bulldozers and the like.

Deere & Company said it expected the largest single-year sales plunge in about fifty years in 2009.

However, the Deere repeated yearly profit forecast worth $1.1 billion, encouraged by cost cutting measures and stronger anticipated sales of agricultural equipment in North America.

Weaker crop-prices and tight credit markets played a vital in trimming down company’s sales worldwide.

For the period ended July 31, Deere & Company reported an earning of $420 million or 99 cents per share as compared with $575.2 million or $1.32 per share in the previous year.

Company’s vice president for investor relations, Marie Ziegler, said, "The market is very difficult in construction."

Net sales of the company plunged 24 per cent to settle at $5.89 billion.

Deere now expects sales of its products to fall around 21 per cent for 2009, up from its previous forecast of 19 per cent.

Deere shares were recently down 2.91 per cent at $43.78 a share.