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Surprisingly good quarter for Deere

It was a surprisingly profitable first quarter for Deere & Company. The Moline, Illinois-based equipment giant posted a 19 percent jump in earnings for the quarter ending January 31. Net profit for the quarter came in at $243 million or 57 cents per share compared to $204 million and 48 cents per share a year ago.

Overall revenue dropped 6 percent to $4.84 billion and net equipment sales were down 7.1 percent to $4.24 billion. The increase in profit came from a combination of lower raw material costs, higher selling prices and favorable currency fluctuation. In fact, the company says currency fluctuations increased sales 5 percent.

Deere also boosted its fiscal 2010 forecast projecting earnings of $1.3 billion on 6 to 8 percent sales growth. The previous prediction was $900 million in earnings and a 1 percent decline in sales. The company says it expects farm equipment sales in the U.S. and Canada to be flat compared to 2009. Previously they had predicted a 10 percent decline. Sales in Western Europe are projected to fall 10 to 15 percent while sales in South America are expected to increase 10 to 15 percent for the year.

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