Camel maker Reynolds 1Q profit falls more than 28 pct on lower cigarette sales, higher costs

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FILE - This Oct. 21, 2009 file photo shows Camel cigarettes, a Reynolds American brand, in Philadelphia. Reynolds American reports quarterly earnings on Wednesday, April 23, 2014. (AP Photo/Matt Rourke, File)

RICHMOND, Va. – Reynolds American Inc. says its first-quarter profit fell more than 28 per cent as the company experienced lower cigarette sales and higher spending on its electronic cigarettes and legal costs.

The nation’s second-biggest tobacco company said Wednesday it earned $363 million, or 67 cents per share, for the quarter ended March. 31. That’s down from $508 million, or 92 cents per share, a year earlier.

Adjusted earnings were 72 cents per share, missing Wall Street estimates by 2 cents.

The Winston-Salem, N.C., maker of Camel and Pall Mall cigarettes said revenue excluding excise taxes increased nearly 3 per cent to $1.93 billion. Analysts polled by FactSet expected $1.91 billion.

Its R.J. Reynolds Tobacco subsidiary sold about 4 per cent fewer cigarettes. But the Camel and Pall Mall brands both gained market share.

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