Deere and Co. says sales of tractors, combines and other agricultural mainstays slumped in the fourth quarter and it expects farmers to remain cautious about new equipment purchases because of the weak global economy.

The company ended fiscal 2009 with a profit of almost $874 million but lost $223 million in the fourth quarter due to big charges related in part to pension costs and job cuts. Its sales of farm and constrution equipment fell 28 percent in the fourth quarter.

Deere's shares, though, briefly hit a 52-week high Wednesday and analysts said the company has handled the economic downturn well and is positioned to grow after what could be a tough 2010.

Deere, based in Moline, is the biggest U.S. maker of farm equipment, and sluggish economic conditions in the United States and much of the rest of the world continue to drive down demand for tractors, combines and the company's other agricultural mainstays.

Farm prices, though historically high, have dropped sharply from bubble highs of the past couple of years and driven down farm incomes by what the U.S. Department of Agriculture projects will be 34.5 percent by the end of the year.

Corn- and soybean-farmer John Olsson says he has several things on his wish list, among them a $150,000 tractor, but he isn't ready to commit.

"I tend to play it a bit on the conservative side," he said Wednesday from his farm in New Berlin, Ill., near Springfield, noting he's weeks behind on his harvest because of wet weather and doesn't yet know how he'll do on this year's crop. "I like to have cash on hand before I get too aggressive buying things."

Deere's construction equipment business has also been hurt by the sluggish global economy and slowdown in home and commercial construction.

Nonetheless, the company said it would have been profitable without the unusual items in the latest quarter.

The company lost 53 cents a share in the three months ended Oct. 31 in contrast to a profit of $345 million, or 81 cents a share, a year earlier.

The loss included charges of $321.8 million for a write-down in the value of assets and restructuring expenses. The company laid off and bought out hundreds of workers earlier this year and closed a Canadian factory.

Otherwise, Deere said it would have earned 23 cents per share. Analysts were looking for earnings of 3 cents a share before items.

Deere's shares hit a 52-week high at $54.15 before closing at $53.70, up $1.41, or 2.7 percent.

"They've done an excellent job, I think, managing through the current economic downturn," analyst Jeff Windau of Edward Jones said. "I think there's probably still room to manage costs."