The maker of John Deere tractors said it now expected equipment sales to fall 10 percent in the year ending in October, compared with an earlier forecast of a 7 percent decline. It lowered its earnings forecast to $1.3 billion from $1.4 billion.

For the current quarter, Deere expects equipment sales to be down 8 percent from a year earlier.

Shares of Deere were down 1.7 percent at $79 in premarket trading.

Net income attributable to Deere fell to $254.4 million, or 80 cents per share, in the first quarter ended on Jan. 31 from $387 million, or $1.12 per share, a year earlier.

Analysts on average had expected a profit of 70 cents per share, according to Thomson Reuters I/B/E/S.

"John Deere's first-quarter results reflected the continuing impact of the downturn in the global farm economy as well as weakness in construction equipment markets," Chief Executive Officer Samuel Allen said in a written statement.

The company derives the bulk of its revenue from the United States and Canada. Industry sales of high-powered two-wheeled drive tractors in those countries fell 38.5 percent in January, according to Association of Equipment Manufacturers data.

Deere said it expected North American industry sales for agricultural equipment to decline 15 percent to 20 percent in 2016.