Reynolds American Profit and Revenue Climb
February 09 2017 - 9:24AM
Dow Jones News
By Ezequiel Minaya
Tobacco company Reynolds American Inc., in the process of being
bought by British American Tobacco, said its income tripled in the
latest quarter as revenue climbed.
Last month, British American reached a deal to take full control
of Reynolds American Inc. in a $49.4 billion deal that marks
renewed interest among international players in the U.S. tobacco
market. On Thursday, Reynolds said it expects the deal to close in
its third quarter.
Reynolds holds a 34.3% share of the U.S. cigarette market,
trailing only Marlboro maker Altria Group Inc. The deal will give
British American brand Kent an opportunity to expand in the U.S.,
and Reynolds's Newport a chance to grow overseas.
For the three months ended Dec. 31, the company reported a
profit of $851 million, or 60 cents a share, up from $279 million,
or 19 cents a share, a year earlier. Excluding certain items,
earnings per share rose to 62 cents from 48 cents.
All of Reynolds's segments posted sales increases. Total revenue
increased 4.3% $3.19 billion. Analysts had projected 60 cents in
per-share profit and $3.16 billion in sales, according to Thomson
Reuters.
The Newport brand's retail market share rose to 13.9% from 13.7%
a year earlier, while Camel rose to 8.2% from 8.1%. As a whole
Reynolds's market share rose to 34.3% from 34.2% a year
earlier.
Shares of the company rose 1.1% to $61.15 in premarket
trading.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
February 09, 2017 09:09 ET (14:09 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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