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Dip in annuity sales doesn’t slow American Equity

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Despite lower annuity sales in the first quarter, American Equity Investment Life Holding Co. is expected to announce a 71 percent increase in revenues compared with a year ago. The West Des Moines-based annuity provider will release its earnings numbers after U.S. markets close May 2, and analysts say revenues for the first three months of 2006 will total approximately $170 million, up from $99 million last year.

American Equity has already announced that its first-quarter annuity sales totaled $564.7 million, compared with $676.3 million in the year-ago period. The company said higher short-term interest rates slowed its sales by increasing the public’s demand for other investment products such as bank certificates of deposit.

For the year, stock analysts predict American Equity could take in $758 million in revenues, compared with $568 million in 2005. Earnings per share are projected at $1.35, compared with $1.31 in 2005. First-quarter earnings per share are seen dropping six percent to 29 cents.

Several other publicly traded Central Iowa companies also will announce quarterly earnings soon.

AmerUs Group Co. is expected to report 18 percent revenue growth after the close of markets May 2. Predictions are that the Des Moines-based life insurance and annuity company will announce $418 million in revenues during the first quarter, compared with $354 million a year ago Earnings per share are expected to be $1.22, a 12 percent increase from $1.09 a year ago. Analysts said the company’s revenues for 2006 could hit $1.72 billion, a 6 percent increase.

Casey’s General Stores Inc. ends its fiscal year April 30 and is expected to report earnings June 12. Analysts predict a 23 percent decrease in revenues for the fourth quarter, but a 19 percent increase for the year. Casey’s, which sells gasoline and food through its Midwestern chain of convenience stores, is expected to have $3.34 billion in revenues for the year, compared with $2.81 billion a year ago.

On April 13, Casey’s reported that same-store gasoline sales decreased 1.5 percent in March, compared with the year-ago period. Sales of groceries and other merchandise increased 3.9 percent and sales of prepared foods and fountain drinks increased 9.6 percent.

EMC Insurance Group Inc. will host an earnings call Thursday morning. Earnings per share for the first quarter are forecast to be 77 cents, compared with 74 cents in the year-ago period. Analysts are predicting that annual earnings per share will decline 20 percent this year.

FBL Financial Group Inc. will release its first-quarter earnings after the close of markets May 4, and is expected to announce revenues of $178 million, a 9 percent increase from $164 million in the year-ago period. Earnings per share are forecast to be 61 cents, compared with 57 cents a year ago.

John Creer, a member of the FBL board of directors since 1996, notified the company that he will resign the post as of June 30.

Meredith Corp. is expected to report sizable increases in revenues and earnings Tuesday before markets open. Analysts predict the media company will announce it had $403 million in revenues during its fiscal third quarter, which ended March 31, a 32 percent increase from $306 million a year ago. Earnings per share could hit 80 cents, compared with 69 cents a year ago. Annual revenues are forecast to reach $1.61 billion, compared with $1.22 billion in 2004-05. The company raised its quarterly dividend in January and has repurchased more than 900,000 shares in the past nine months.

Principal Financial Group Inc. is expected to report $2.3 billion in first-quarter revenues May 1. That would represent a 7 percent increase from the $2.15 billion result in the year-ago period. Earnings per share could reach 76 cents, a 10 percent increase from last year’s 69 cents.

For the year, the financial services company is predicted to have $9.6 billion in revenues, a 7 percent increase from $9 billion in 2005.

Michael Dan will join the Principal board of directors in May. Dan is chairman, president and chief executive officer of The Brinks Co.

Sauer-Danfoss Inc. will release first-quarter results May 3 after markets close, and will hold a conference call May 4. The call can be accessed through the investor relations section of the company’s Web site, ir.sauer-danfoss.com. Sauer-Danfoss is a German-controlled maker of hydraulic systems and components, and has corporate headquarters in Ames.

The company’s stock price made a new 52-week high three times in the first 10 days of April.

West Bancorporation Inc., the parent company of West Bank in West Des Moines, WB Capital Management Inc. and Investors Management Group Ltd., last week reported net income of $4.6 million, or 27 cents per share, for the first quarter of 2006, compared with $4.8 million, or 29 cents per share, for the first quarter of 2005. During the first quarter, loans grew by $62 million. Compared to a year ago, loans have increased $188 million.

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