Aug 18 Reuters Deere Co breezed past Wall Street estimates for thirdquarter profit on Friday and raised its fullyear guidance, but investor concerns over slower sales going forward sent shares down as much as 5.

The Moline, Illinoisbased company posted a 60 rise in quarterly profit, yet investors were seemingly unimpressed as shares slumped for the world39;s largest farm equipment maker.

Easing of supply chain bottlenecks has prompted Deere to boost production to reduce its backlog. While it easily beat profit expectations, Deere39;s stock slump is consistent with other cyclical companies that have outperformed estimates.

This is broadly in line with what we39;ve seen this entire earnings season, said Kristen Owen, executive director at Oppenheimer Co Inc.

Owen attributed the tepid market reaction to Deere raising its annual forecast to investors projecting lower sales volumes for the fourth quarter, hinting at a potential downturn in demand in 2024.

Deere expects 2023 net income between 9.75 billion and 10.00 billion, up from its previous outlook of 9.25 billion to 9.50 billion.

The company, a barometer for the global economy, has maintained resilient operating profit margins despite volatility in markets worldwide, with demand from farmers looking for new equipment and parts to repair aging fleets, bolstering Deere39;s sales.

Executives reiterated on a conference call that order books for North American agriculture equipment remain robust and are largely…