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Reynolds American profit jumps but volume lags
Categories:
· Business
International:
· USA
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Source:http://www.marketwatch.com/,2009-10-28
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Higher pricing, cost cuts and growth in smokeless tobacco helped Reynolds American Inc. overcome cigarette-volume declines and push its third-quarter profit higher, the company said.
Reynolds earned $362 million, or $1.24 a share, up 72% from $211 million, or 72 cents, in the year-earlier quarter. Excluding one-time charges in the year-ago period, adjusted earnings were down at $1.24 a share from $1.29.
Sales slipped to $2.15 billion from $2.27 billion as cigarette volume fell 11%.
The average estimate of analysts polled by FactSet Research had been profit of $1.18 a share on revenue of $2.19 billion.
"Reynolds American's third-quarter results reflect continued improvement in the company's operating businesses, despite the year's many challenges," Chief Executive Susan Ivey said in the earnings report. "This year has been marked by unprecedented increases in excise taxes on tobacco products, an extremely weak economy and intense competitive activity."
Looking ahead to the full year, the Winston-Salem, N.C., firm said it now expects to earn $4.60 to $4.70 a share on an adjusted basis, vs. a previous estimate of $4.40 to $4.60 and Wall Street's view of $4.59. Those estimates exclude possible charges for trademark impairments but include 40 cents a share of additional pension expense.
Shares of Reynolds American were down 0.7% at $48.70 in recent action. |
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