UPDATE 1-Agco posts profit but outlook disappoints

(Adds details on outlook, stock reaction)

CHICAGO, Feb 7 (Reuters) - Agricultural equipment maker Agco Corp AG.N on Thursday posted a profit in the latest quarter versus a year-earlier loss, as higher commodity prices prompted farmers worldwide to buy more of its tractors and combines.

But the company forecast 2008 earnings that would fall short of Wall Street's hopes, sending its shares down more than 7 percent in early trading.

Agco said it made a net profit of $81.1 million, or 82 cents a share, during the fourth quarter, compared with a net loss of $128.5 million, or $1.41 a share, a year before.

Net sales rose 32.9 percent to $2.2 billion.

Analysts had expected the Duluth, Georgia-based company to earn 63 cents a share on sales of $1.9 billion, according to Reuters Estimates.

But looking forward, Agco said it expects to report a full-year 2008 profit of $2.75 a share -- though it said it had a "goal" of hitting $3 a share.

That was below the $3.23 a share analysts were hoping for, on average, according to Reuters Estimates.

Agco shares were down about $2.31, or about 4 percent, at $55.65 on the New York Stock Exchange in midmorning trading after earlier falling as low as $53.59. (Reporting by James B. Kelleher, editing by Gerald E. McCormick)