Shares in Agco slumped by 12% after the tractor-maker , for a third time, cut its full year profits target, blaming weak demand in Europe's key French, German and UK markets.

The maker of Massey Ferguson, Challenger and Fendt equipment said that profits at its European division would miss targets because of "softening market conditions, slowing order in-take... and lower than anticipated margins".

Martin Richenhagen, the Agco chairman, and chief executive, warned of "lower than anticipated levels of demand in our European operations, especially in the important markets of Germany, France and the UK".

He added that the group was making "more aggressive cuts" to its machinery production than initially planned.

Shares slump 

The downturn, which echoes slowdowns at rivals such as Deere & Co, has left the group looking potentially at a loss for the July-to-September period, Agco added.

This would be the group's first quarter in the red for nearly three years.

For the full year, sales would come in 30-35% below last year's with earnings pegged at $1.30-1.50 per share.

Analysts had been expected a $2.06-a-share result.

Agco shares stood 12.2% lower at $28.60 in lunchtime trade in New York.