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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