Reynolds American Q1 EPS 1.11 usd vs 1.17, lifts FY guidance to 4.40-4.60 UPDATE |
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Wed, 25 Apr 2007 13:32
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(Updating with company comment, Q2 comparison concerns)LONDON (Thomson Financial) - Reynolds American said first-quarter earnings per share fell 5 pct to 1.11 usd from 1.17 usd in the first quarter of 2006, which it attributed to a 65 mln usd tax benefit a year ago.The company said adjusted EPS for the first quarter rose 17 pct to 1.11 usd from 0.95 usd in the same comparison.Reynolds American said net sales rose to 2.148 bln usd in the first quarter of 2007, an increase of 9.6 pct on first-quarter 2006 net sales of 1.96 bln.It added first-quarter operating income rose 28.7 pct to 574 mln usd from 446 mln in the first quarter of last year, while net income fell 4.9 pct to 328 mln usd from 345 mln in the same comparison.The company lifted its full-year EPS forecast to 4.40-4.60 usd, an increase of 0.15 usd on its previous projection, which it said was driven by a reduction of approximately 60 mln usd in pension expenses for the year.Reynolds American said both of its units -- RJ Reynolds and Conwood -- delivered double-digit profit growth and attributed its higher operating income figure to 'improvements in pricing and operating costs, as well as favorabilities in the timing of promotions and pension expense'.The company expects shipment volume to fall 3-4 pct in the second quarter, said RJ Reynolds president and CEO Daniel Delen, also warning of a difficult comparison in the second quarter due to a build in trade inventory levels during the corresponding quarter of 2006.It said volumes fell 4 pct in the most recent quarter.tf.TFN-Europe_newsdesk@thomson.comms1COPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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S&P revises Reynolds American outlook 