Farm equipment maker Deere & Co reported a doubling of quarterly profit Wednesday amid strong North American sales of large, high-margin machines and price increases, and lifted its full-year profit forecast.

The world's largest maker of tractors and combines earned $514 million, or $1.20 per share, in the first quarter that ended Jan. 31, compared with $243.2 million, or 57 cents per share a year earlier.

Analysts, on average, expected a profit of 99 cents a share, according to Thomson Reuters I/B/E/S.

Deere's shares [ DE 74.1725  -2.4475 (-3.19%) ] rose more than 3 percent in premarket trading.

Sales rose 27 percent to $6.12 billion, ahead of Wall Street forecasts for sales of $5.67 billion. Machinery sales rose at a much faster pace in the United States and Canada than in other regions. Deere said it raised prices 2 percent.

Construction and forestry machine sales, a smaller business for Deere, soared 81 percent and the segment swung to a profit.

Rising prices of food commodities like corn, wheat and soybeans have boosted farmers' investments in new equipment.

More inflation since the start of 2011 is supporting the company's outlook, Moline, Illinois-based Deere said.

Deere forecast a full-year profit of $2.5 billion. Its November forecast called for a 2011 profit of $2.1 billion.

More Top Stories

All It Takes Is a Greek Story to Further Scare Markets

Even Pros Don't Like Stocks: Could That Be Bullish Sign?

Hedge Fund Elite: What Our 'Best Ideas' Are Now

Fed Members Favor More Easing if Economy Falters

'London Whale,' Who Lost $2 Billion, to Leave JPMorgan

More Top Stories