U.S. farm equipment maker Deere & Co. on Friday reported a 23 percent jump in first-quarter revenues as its key markets improved, but recorded a net loss after a charge related to U.S. tax reform legislation.

Revenues rose to $6.91 billion in the quarter ending Jan. 28 from $5.63 billion last year. Total equipment sales rose 27 percent to $5.97 billion.

Shares rose 1.6 percent to $169.50 in premarket trading.

The Moline, Illinois-based company said it expects a 29 percent increase in equipment sales in fiscal 2018, helped by its acquisition of Germany's Wirtgen Group last year and a favorable currency effect.

Equipment sales are expected to go up by 30 percent to 40 percent in the second quarter.

"Deere has continued to experience strong increases in demand for its products as conditions in key markets show further improvement," said chief Executive Officer Samuel R. Allen.

It posted a quarterly net loss of $535.1 million, or $1.66 per share, including a $965 million charged related to U.S. tax reform. Adjusted net income was $430.0 million, or $1.31 per share.

A year earlier it recorded net income of $199.0 million, or 62 cents per share.

Deere has battling weak demand for farm equipment for the past four years as global oversupplies pushed down prices, sending U.S. farm incomes plunging.

The company said it expects higher demand to lift industry sales for agricultural equipment in the United States and Canada, its biggest market, by 10 percent this year.