QUOTE OF THE DAY

“Twenty-five percent of Arkansans don’t have health insurance today, but they’re still going to the doctor or the emergency room or the hospital. Those providers are essentially not able to get payment for those individuals, so they shift the cost over to those people who do have insurance and are paying higher rates.”

Joe Thompson, State surgeon general and director of Arkansas Center for Health Improvement, on proposals to lower health-care prices charged by hospitals, doctors and other providers Article, 1D

Wal-Mart to report earnings at sunrise

Wal-Mart Stores Inc. will release its quarterly earnings during a prerecorded phone call about 6 a.m. today.

Analysts on Wall Street and elsewhere have predicted on average that the nation’s largest retailer will report earnings of $1.15 per share on revenue of $116.42 billion when the Bentonville-based company releases its first quarter results for fiscal 2014 before the opening bell today.

More than 20 analysts reporting to Yahoo Finance shared the earnings consensus.

Shareholders and others in the United States and Canada can listen in on a conference call regarding the earnings results by dialing (877) 523-5612; access code: 9256278, followed by the pound (#) sign. All other callers can dial (201) 689-8483, access code: 9256278 followed by the pound (#) sign.

Deere cuts 2013 sales-growth guidance

MOLINE, Ill. - Deere & Co. said Wednesday that bad weather and weak economies will hinder sales growth this year for lawn mowers and construction equipment.

The company reported better-than-expected second quarter earnings and maintained its full-year profit prediction. Sales of farm gear such as its big green John Deere tractors and combines are still strong and growing, the company said.

Deere said sales of farm and construction equipment would rise 5 percent during the current fiscal year, which is now half over. It had previously predicted growth of 6 percent.

The reduced sales expectation came after a long, cold winter in North America delayed the planting of this year’s seeds.

It also slowed construction work and reduced demand for turf-care equipment such as lawn mowers, the company said.

Chief Executive Officer Samuel Allen also said Deere’s “near-term forecast is being tempered by lingering economic concerns in many parts of the world, which are restraining business confidence and growth.”

Deere’s second-quarter net income rose 3 percent to $1.08 billion, or $2.76 per share. That was up from $1.06 billion, or $2.61 per share, during the same period last year. That topped analysts’ average estimates for earnings of $2.71 per share.

Revenue from equipment sales rose 9 percent to $10.27 billion from $9.41 billion a year earlier. Analysts had expected equipment revenue of $9.82 billion. Including financial services, Deere revenue rose 9 percent to $10.91 billion.

Deere raised prices 3 percent and shipped more gear during the quarter. The company predicted that sales of construction and forestry gear would fall 5 percent for the full year. Those sales were down 6 percent in the most recent quarter as shipments declined.

Sales of farm and turf equipment grew 12 percent for the quarter, and Deere predicted an increase of 7 percent for the full year.

Commodity prices are still relatively high, and farm incomes are continuing to support demand for farm equipment.

Deere predicted full-year sales gains of 5 percent in the U.S. and Canada but said sales in Europe will decline 5 percent after a poor harvest in the United Kingdom last year.

Sales in South America are expected to rise 15 to 20 percent because of strong market conditions in Brazil.

Deere’s full-year profit prediction of $3.3 billion is unchanged.

Business, Pages 28 on 05/16/2013