Deere & Company (DE) reported results for the first quarter of fiscal 2010. Earnings were $243.2 million or 57 cents per share, up from $203.9 million or 48 cents in the year-ago period. Reported EPS was well above the Zacks Consensus Estimate of 19 cents.

Quarterly revenue of $4.85 billion was down 6% from the prior-year period. Net sales from the company’s worldwide equipment operations dropped 7.1% year over year to $4.24 billion due to lower shipment and production volumes. Equipment net sales in the U.S. and Canada fell 8%, while net sales outside the U.S. and Canada were down 6%.

Agriculture & Turf segment sales fell 6% due to lower shipment volumes, partially offset by improved price realization. The segment’s operating profit was $352 million, compared to $289 million last year. The increase in profit primarily resulted from lower raw-material costs, improved price realization and favorable effects of foreign exchange and product mix.

Sales in the Construction and Forestry segment were down 15%, reflecting a significant decline in shipment and production volumes. The segment posted an operating loss of $37 million for the reported quarter, compared to an operating profit of $18 million in the same quarter last year. The decline primarily was due to lower shipment and production volumes and higher postretirement benefit costs.

Equipment sales are projected to be up 6% to 8% for fiscal 2010 and up 4% to 6% for the second quarter compared to the second quarter of 2009. The forecast includes a favorable currency-translation impact of about 3% for the year and about 5% for the quarter.

For the full year, net income attributable to Deere is anticipated to be $1.3 billion. Worldwide sales of the company’s agriculture and turf division are forecast to increase by 4% to 6% for full-year 2010, with a favorable currency-translation impact of about 4%.

Deere’s worldwide sales of construction and forestry equipment are forecast to increase by about 21% for full-year 2010. Full-year 2010 net income attributable to credit operations is forecast to be approximately $260 million. The forecast increase from 2009 is primarily due to more favorable financing spreads.

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