Deere & Co. John Deere 6870 STS combine on display at the World Agriculture Expo earlier this month. (AP)

Associated Press | Heavy equipment maker Deere & Co. reported a 19 percent jump in
first-quarter profit Wednesday despite the “stubbornly weak” economy as
lower costs and favorable exchange rates helped offset a 6 percent drop
in revenue.

The company also boosted its outlook for 2010, which helped send shares up 7.6 percent to $57.85 in premarket trading Wednesday.

The maker of iconic green and yellow machinery said it earned $243.2 million, or 57 cents per share, during the quarter that ended Jan. 31. That’s up from $203.9 million, or 48 cents per share a year ago.

Profits are way ahead of the expectations of analysts surveyed by Thomson Reuters, who expected on average about 19 cents on $4.19 billion revenue.

Deere, based in Moline, Ill., said its revenue declined 6 percent to $4.8 billion from $5.1 billion a year ago.

But Deere’s costs declined 8 percent to $4.5 billion.

Deere, the world’s largest manufacturer of agricultural equipment, also makes construction and forestry equipment, such as backhoes, excavators, riding mowers and leaf blowers.

President and CEO Samuel Allen said Deere should be ready to respond well to a global economic recovery because of its focus on controlling costs.

“Results for the quarter reflected solid execution of our operating and marketing plans throughout the company and are especially gratifying in light of global economic conditions that remain stubbornly weak,” Allen said.

Deere boosted its annual outlook above what it predicted in November. The company expects now sales to grow 6 percent to 8 percent with $1.3 billion in profit. Last fall, Deere officials predicted a $900 million profit in fiscal 2010.