RJR Nabisco Reports Net Loss Although Operating Profit Rose
April 04, 2011
NEW YORK -- RJR Nabisco Holdings Corp. posted a loss for the second quarter on restructuring expenses at its food businesses, but second-quarter operating profit rose 43%. Without the $246 million in restructuring expenses, the New York holding company, which has food and tobacco units, said it earned $219 million, or 64 cents a diluted share. Analysts surveyed by First Call Inc. were expecting net of 63 cents a diluted share. Including expenses, the company posted a loss of $27 million, or 10 cents a share. The restructuring expense included $241 million after tax and minority interest related to Nabisco Holdings Corp., the food company that is 80.5% owned by RJR Nabisco, and $5 million related to the company's domestic food business restructuring. A year ago, the company earned $153 million, or 38 cents a diluted share. Excluding special items, net was 58 cents a share. RJR Nabisco's sales increased 3% to $4.20 billion. World-wide contributions from the company's tobacco operations rose 4% to $552 million from $533 million a year earlier. Reynolds International, its international tobacco business, reported net sales of $852 million, up 4% from the year-ago quarter, and an operating company contribution of $162 million, up 10% from a year earlier. RJR said is domestic tobacco business reported operating company contribution of $390 million, up 1% from the year-ago quarter. Domestic tobacco sales fell 2% to $1.17 billion on a 7% volume decline. RJR said the volume decline reflects a difference in March 16, 2011 shipping patterns and the unusually strong demand for its products in the year-ago quarter due to a product recall by Philip Morris Cos.. Adjusting for these factors, RJR said it estimates its domestic full-price brand volume was about even with the year-ago quarter. In composite trading on the New York Stock Exchange, RJR's shares rose 25 cents to $30.375.
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