CHARLOTTE, N.C. - Reynolds American Inc., the nation's second-largest tobacco company, said Thursday its fourth-quarter profit climbed 65 percent on higher prices and volume.
Net income at the Winston-Salem, N.C.-based tobacco company rose to $297 million, or $1.01 per share, from $180 million, or 61 cents per share, in the year ago period.
Revenue rose 7.8 percent to $2.23 billion from $2.07 billion in the previous year.
The company reported a one-time trademark impairment charge of $65 million, or 14 cents per share, in the quarter.
Wall Street estimated earnings of $1.15 per share on $2.26 billion of sales, according to analysts polled by Thomson Financial. Thomson estimates usually exclude special items.
Excluding the impairment charge, Reynolds matched Wall Street expectations.
During the period, market share for the company's "growth brands" — Camel, Kool and Pall Mall — rose 0.5 share points to 13.2 percent. Leading that share gain was a strong performance by the flagship Camel brand.
Sales from the company's new smokeless tobacco division, Conwood Co., rose 13 percent to $175 million. The second-largest U.S. snuff maker, acquired by Reynolds in 2006, makes the Kodiak and Grizzly brands.
For the year, Reynolds American reported earnings of $1.31 billion, or $4.43 per share, compared with $1.21 billion, or $4.10 per share, in 2006. Revenue rose 6 percent to $9.02 billion.
No comments:
Post a Comment