Reynolds American Inc. (RAI) said its first quarter profit fell to $270 million or $0.47 per share from $381 million or $0.65 per share a year ago. The company said prior-year amounts have been adjusted to reflect the change in method of recognizing actuarial gains and losses for pension and postretirement benefits.
Adjusted earnings per share dropped to $0.63 from $0.64 in the same quarter a year ago, as higher pricing and productivity improvements were offset by cigarette volume declines. Adjusted results exclude a charge of $0.16 per share for a restructuring charge related to the completion of the comprehensive business analysis.
On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.65 per share. Analysts' estimates typically exclude special items.
Net sales declined to $1.93 billion from the previous year's $1.99 billion. Analysts estimated revenues of $1.98 billion.
"RAI and its operating companies demonstrated underlying strength and resilience in a challenging first quarter, and we remain on track to deliver full-year adjusted EPS growth in the mid- to high-single digits," said Daniel Delen, president and chief executive officer.
RAI reaffirmed adjusted earnings per share guidance for 2012 in the range of $2.91 to $3.01, up 3.6 percent to 7.1 percent. This guidance excludes the restructuring charge. Analysts expect the company to earn $2.97 per share.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.