Deere says its third-quarter net income rose 11% but fell well short of expectations, hit hard by a weakening global economy and prolonged drought in the US.

The world's largest producer of agricultural equipment said today it earned $788m, or $1.98 per share, for the quarter ended July 31, compared with $712.3m, or $1.69 per share for the same period last year.

Revenue rose 15% to $9.59 billion.

But Wall Street was looking for earnings of $2.31 per share on revenue of $9.61 billion, and Deere's stock tumbled 5%.

Besides international weakness and shrinking crop yields, new product launches also hurt efficiency.

It projects net income of $3.1 billion for the year, compared with analyst expectations of about $3.3 billion.