Feb 17 Reuters Deere Co raised its annual profit forecast on Friday after beating Wall Street estimates for the latest quarter on higher revenue for its highhorsepower tractors and an increase in spending from construction customers.

Shares of the world39;s largest farm equipment maker rose 6.1.

The industrial bellwether, a barometer for the global economy, has maintained strong profit margins despite recession concerns. Demand from farmers has been strong, after higher commodity prices last year aided producers to purchase new equipment or upgrade their fleets.

Deere39;s margins have remained high as it has been able to raise prices across its equipment divisions, offsetting rising shipping costs and tight supply chains.

After posting results for the first quarter ended in January, the company expects net income of 8.75 billion to 9.25 billion for the year, higher than the 8 billion to 8.5 billion estimated last quarter.

Analysts believe the revised outlook was due to a combination of stronger pricing and producing machines on the manufacturing line as efficiently as possible, said Matt Arnold, equity analyst at Edward Jones.

The Moline, Illinoisbased company39;s equipment sales rose 34, while its production and precision agriculture division saw the most growth, with quarterly sales increasing 55 from the year prior, as the company expands its product portfolio in autonomous solutions for crop planting and harvesting.

Strong pricing for Deere39;s herbicide…