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Reynolds American delivers higher second-quarter earnings, reaffirms full-year guidance
Story Date: 7/25/2012
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Source: PRESS RELEASE, 7/24/12
Reynolds American Inc. (NYSE: RAI) today announced second-quarter 2012 adjusted EPS of $0.79, up 11.3 percent from the prior-year quarter as higher cigarette and moist-snuff pricing, moist-snuff volume gains and productivity improvements more than offset cigarette volume declines. Adjusted results exclude a charge of $0.01 per share related to the Engle progeny lawsuits. Second-quarter reported EPS was $0.78, up 39.3 percent.
For the first half of 2012, adjusted EPS was $1.41, up 4.4 percent, while reported EPS was $1.24, up 2.5 percent. First-half adjusted results exclude the above litigation charge, as well as the 2012 restructuring charge and 2011 implementation costs, tax items and Scott lawsuit charge.
RAI reaffirmed adjusted EPS guidance for 2012 in the range of $2.91 to $3.01, up 3.6 percent to 7.1 percent. This excludes the charge of $0.01 per share for the Engle progeny lawsuits, as well as the 2012 restructuring charge of $0.16 per share following completion of a comprehensive business analysis.
Second Quarter and First Half 2012 – At a Glance
· Adjusted EPS: Second quarter at $0.79, up 11.3 percent from prior-year quarter; first half at $1.41, up 4.4 percent
o Excludes a charge of $0.01 per share related to Engle progeny lawsuits and special items*
· Reported EPS: Second quarter at $0.78, up 39.3 percent; first half at $1.24, up 2.5 percent
· RAI reaffirms 2012 guidance: Adjusted EPS range of $2.91 to $3.01
o Excludes charges for Engle progeny lawsuits and 2012
restructuring
· Higher adjusted operating income, margin at RJR Tobacco
· Solid earnings, volume growth at American Snuff
· Increased share and earnings at Santa Fe
· RAI increased dividend 5.4 percent on May 3
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