Tobacco firm Reynolds American 4Q profit more than doubles on higher prices, lower legal costs

CP27162122
FILE - In this Oct. 21, 2009 file photo, Camel cigarettes, a Reynolds American brand, are shown in Philadelphia. Reynolds American reports quarterly earnings on Tuesday, Feb. 11, 2014. (AP Photo/Matt Rourke, File)

RICHMOND, Va. – Reynolds American Inc. says its fourth-quarter profit more than doubled as higher prices and lower legal expenses offset a decline in cigarette sales.

The nation’s second-biggest tobacco company said Tuesday it earned $292 million, or 54 cents per share, for the quarter ended Dec. 31. That’s up from $139 million, or 25 cents per share, in the year-ago period that included pension and trademark-related charges.

Adjusted earnings were 77 cents per share.

The Winston-Salem, N.C., maker of Camel and Pall Mall cigarettes said revenue excluding excise taxes fell about 2 per cent to $2.04 billion.

Analysts expected higher earnings of 81 cents per share on revenue of $2.07 billion.

Its R.J. Reynolds Tobacco subsidiary sold about 9 per cent fewer cigarettes. But Camel and Pall Mall both gained market share.

News from © The Associated Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Create a free account

The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.

Related Articles