Caterpillar Inc reported a 29 percent rise in quarterly profit on Wednesday due to continued demand for replacement machinery in North America and growth in its mining business.

The world's largest maker of construction machinery reported net earnings of $1.6 billion, or $2.37 per share, compared with $1.2 billion, or $1.84 per share, a year earlier.

Caterpillar's sales rose 23 percent to $16 billion during the first quarter, the company said.

The company also increased its profit outlook for the year to $9.50 per share, up from $9.25 previously.

(Reporting By John D. Stoll; Editing by Maureen Bavdek)