By Bianca Flowers and Aishwarya Nair

(Reuters) – Deere (NYSE:) & Co raised its annual revenue forecast on Friday after beating Wall Avenue quarterly earnings estimates on sturdy demand for its high-horsepower tractors and a rise in spending from building prospects.

Shares of the world’s largest farm tools maker have been up 3% earlier than the bell.

The economic bellwether, a barometer for the worldwide economic system, has maintained sturdy revenue margins regardless of recession considerations. Demand from farmers has been sturdy, after elevated crop commodities final yr left producers with revenue to buy new tools or improve their fleets.

Executives mentioned final quarter that Deere’s North American order books have been full for the yr for its massive tractors and that the machinery-maker had offered out of combines forward of planting season.

Deere’s margins have remained excessive because it has been in a position to elevate costs throughout its tools divisions, offsetting rising delivery prices and tight provide chains.

The Moline, Illinois-based firm’s tools gross sales rose 34%, whereas its manufacturing and precision agriculture division noticed essentially the most progress with quarterly gross sales growing 55% from the yr prior.

Internet gross sales for the machinery-maker’s building and forestry phase rose 26% year-over-year.

The corporate’s monetary providers enterprise has been resilient, nevertheless, revenue for the phase within the newest quarter fell to $185 million from $231 million beforehand.

The corporate expects web revenue of $8.75 billion to $9.25 billion for the yr, larger than $8 billion to $8.5 billion estimated beforehand.

Deere’s tools income for the quarter got here in at 11.4 billion, topping Refintiv analysts estimates of $11.28 billion.

Internet revenue attributable to the corporate rose to $1.96 billion, or $6.55 per share, outpacing analysts estimates of $5.57 earnings per share.

Complete web gross sales and income rose to $12.65 billion from $9.57 billion for first fiscal quarter ending in January.

(This story has been corrected to repair the gross sales improve share to 34% from 32%, in paragraph 6)