• Most Popular
  • Most Shared

UPDATE 1-UST third-quarter net profit falls

Fri Oct 24, 2008 8:29am EDT

Stocks

   

* EPS 91c before items vs 90c analysts estimate

Stocks  |  Global Markets

* More promotional spending on smokeless tobacco

CHICAGO, Oct 24 (Reuters) - UST Inc UST.N posted lower third-quarter net profit as it spent more to try to defend sales of its smokeless tobacco products from increased competition.

The company, which has agreed to be acquired by Altria Group Inc (MO.N), also stood by its full-year earnings target on Friday.

UST, which makes Skoal and Copenhagen smokeless tobacco and Columbia Crest wine, reported profit of $125.3 million, or 84 cents a share, compared with $133.6 million, or 84 cents a share, a year earlier. Earnings per share were flat because the company had been repurchasing stock.

Excluding one-time items, earnings were 91 cents a share, a penny higher than the analysts' average forecast.

UST's share of the U.S. smokeless tobacco market was 57.4 percent, the same as the second quarter and down 3 percentage points from a year earlier. While smokeless tobacco sales in general have been on the rise, UST's main business, the premium segment, has suffered because of soaring gasoline prices and the weak U.S. economy.

Sales in the smokeless tobacco business decreased 5.2 percent to $364.1 million, and segment profit fell 8.6 percent. (Reporting by Brad Dorfman; Editing by Lisa Von Ahn)

Stocks
Global Markets


More from Reuters

Photo

U.S. probing if al Qaeda linked to airplane incident

WASHINGTON (Reuters) - The United States is investigating whether al Qaeda was involved in a Christmas Day attempt to blow up a passenger jet, but there is no early evidence the Nigerian suspect in the case was part of a larger plot, the U.S. homeland security chief said on Sunday. | Video

» More Top News
A Delta Airbus 330 airliner sits on a runway at Detroit Metropolitan Airport in Romulus, Michigan in this video grab made December 25, 2009. Credit: REUTERS/WDIV TV/Handout

The battle in mid-air

The attraction of bombing airliners means the aviation industry has to be constantly vigilant in its fight against attackers.  Full Article 

U.S.
A caution sign is seen next to a stock board at the Australian Securities Exchange (ASX) in Sydney September 5, 2008. REUTERS/Daniel Munoz
Political Risk in 2010:

Don't say we didn't warn you

With the financial crisis (mostly) in the past, U.S. investors are eying a fresh start to the coming year. Here's a look at what speedbumps lie ahead.  Full Article 

Global Markets