MOORESVILLE, N.C. — Lowe's, the No. 2 home-improvement retailer, said today its third-quarter profit fell 30 percent as customers continued to delay large purchases amid a weak economy. But Lowe's said some of the hardest hit home markets are stabilizing.

CEO Robert A. Niblock said the company is beginning to see better performance in some of the hardest-hit markets, including California, Florida and parts of the desert Southwest.

For the fourth quarter, the company predicts sales will be flat compared with the $9.98 billion reported in the year-ago quarter.

Analysts expect revenue of $9.91 billion.