logo
Share SHARE
FONT-SIZE Plus   Neg

Reynolds American Q1 Profit Down; Reaffirms 2012 Adj. EPS View - Quick Facts

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Low-cost airline Allegiant Air announced its order for brand-new aircraft for the first time in its history. The carrier announced on Friday it had reached a deal to purchase 12 current-generation models of Airbus' A320 narrow-body jets. The company termed the deal as "another step towards Allegiant's... Los Angeles City officials have filed criminal charges against Soylent CEO Robert Rhinehart for placing a bright red shipping container on Montecito Heights hillside as part of his "experiment in sustainable living." City Attorney Mike Feuer Friday announced that his office has filed multiple criminal... A new study says that if Hillary Clinton is elected then her proposals will strengthen the U.S. economy and create millions of jobs. According to Moody's Analytics, Hillary Clinton's economic proposal would oversee a "somewhat stronger U.S. economy." The conclusion was reached after assessing her...
comments powered by Disqus
Follow RTT