(Reuters) -Farm and construction machinery maker CNH Industrial ( CNH ) lowered its full-year profit forecast on Friday, as it intentionally scaled back production of tractors and combines to avoid a supply glut amid sluggish demand.

Shares of the company were down more than 12% in premarket trading.

The Company, which is famous for its Chase IH and New Holland brand of tractors, said it produced fewer units in 2025 than a year earlier, and that, coupled with weaker sales, weighed on its margins.

Farm equipment manufacturers have been forced to scale back production as demand for new machinery remains muted, with lower crop prices and rising production costs prompting farmers to defer big-ticket purchases.

This, in turn, has left dealers grappling with elevated inventories, prompting a more cautious pace of restocking.

CNH now expects its 2025 adjusted profit to be between 44 cents and 50 cents per share, compared with its previous forecast of 50 cents to 70 cents. Analysts on average expect a full-year profit of 59 cents, according to data complied by LSEG.

"The August 2025 expansion of steel and aluminum tariffs in the U.S. has created additional exposure for CNH," the company said, adding that it reworked supply chains, drew down inventory, and adjusted prices to partly offset impacts from U.S. President Donald Trump's tariffs.

CNH reported third-quarter revenue of $4.39 billion, beating analysts' estimates of $3.91 billion.

On an adjusted basis, it reported a profit of 8 cents per share for the quarter ended September 30, below estimates of 13 cents per share.