Deere & Company, the world’s biggest maker of tractors and other farm machinery, saw its second quarter profits suffer as the plunge in construction spending sapped its revenues.

Net income at Deere fell by 38 per cent to $472.3m, or $1.11 a share, compared with $763.5m, or $1.74 a share, during the second quarter of 2008. Although the results were slightly better than analysts’ estimates, the company said on Wednesday that the outlook for the rest of the year remained “highly uncertain” with “more risk on the downside”.