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
Etihad Airway's Chief Executive Officer James Hogan will leave in the second half this year. Hogan has been with the Abu Dhabi based aviation group since 2006. Chief Financial Officer James Rigney also will depart from service. Seafood lovers must now be prepared to dole out more cash than before for salmon. The price of salmon has surged globally and is now at historic highs amid acute outbreaks of sea lice. According to data from the Nasdaq Salmon Index, the price of salmon has risen by more than 15 percent in the last three months. Health-food restaurant chain Freshii Inc. has increased the price range for its initial public offering in Canada. Freshii has raised the price range for its IPO to C$10 to C$11.50 per share from the prior range of C$8.50 to C$10.0 per share, BNN reported.
comments powered by Disqus
Follow RTT