Reynolds American net income up on higher prices
RICHMOND, Va. — Reynolds American says its second-quarter net income grew more than 35 percent as higher prices and cost-cutting helped offset a decline in the number of cigarettes it sold.
The nation’s second-biggest tobacco company reported net income of $443 million, or 78 cents per share, for the period ended June 30. That’s up from $327 million, or 56 cents per share, a year ago.Adjusted earnings were 79 cents per share, beating analysts’ expectations of 76 cents per share.
The maker of Camel, Pall Mall and Natural American Spirit brand cigarettes says revenue excluding excise taxes fell 4 percent to $2.18 billion. Analysts expected $2.24 billion.
The Winston-Salem, N.C., company says it sold 6.7 percent fewer cigarettes. Volume for its smokeless tobacco brands that include Grizzly and Kodiak rose 10.7 percent.
Source: The Associated Press