Gehl cuts 2008 outlook on housing market weakness

Gehl Co., which makes construction and agricultural equipment, lowered its full-year outlook on Monday, citing continued weakness in the U.S. housing market, among other factors.

Gehl said it now expects full-year sales of between $390 million and $410 million. It expects earnings of between 85 cents and $1.05 per share.

Previously, the company guided for sales of between $405 million and $425 million on earnings of between 95 cents and $1.20 per share. All the forecasts exclude one-time items.

The company attributed the reduction to its results for the first half of the year, its backlog, its field inventory adjustments and the expectation of further weakness in the North American housing market.

Gehl also said Monday its second-quarter earnings fell sharply due to the sluggish U.S. construction market.