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News Summary: Reynolds American 4Q profit jumps

Published February 11, 2014 8:56 am

This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

THE RESULTS: Reynolds American Inc.'s fourth-quarter profit more than doubled to $292 million as higher prices and lower legal expenses offset a decline in cigarette sales, and it benefited from the year-ago comparison. The maker of Camel, Pall Mall cigarettes and Natural American Spirit cigarettes said revenue excluding excise taxes fell about 2 percent to $2.04 billion.

CIGARETTE DECLINES: The number of cigarettes sold by its R.J. Reynolds Tobacco subsidiary fell about 9 percent during the quarter to 15.6 billion. Volumes for Pall Mall fell more than 6 percent and volumes for Camel fell 3.5 percent. Both brands gained market share.

SMOKELESS TOBACCO: Volume for its smokeless tobacco brands including Grizzly and Kodiak rose about 8 percent compared with a year ago. The brands had a 33.3 percent share of the U.S. retail market, which is tiny compared with cigarettes.