UPDATE 2-Reynolds, UST post higher quarterly profits

(Adds UST results, details, byline)

By Brad Dorfman

CHICAGO, Oct 25 (Reuters) - Reynolds American Inc (RAI.N: Quote, Profile, Research, Stock Buzz) and UST Inc (UST.N: Quote, Profile, Research, Stock Buzz) posted higher quarterly profits on Thursday, helped by strong sales of smokeless tobacco and cost cuts, and both raised their full-year earnings outlooks.

UST shares rose more than 4 percent, while Reynolds was up slightly.

Reynolds said it also had benefited from higher cigarette prices and a shift in sales to its higher-priced products during the quarter, while UST's wine business helped boost that company's earnings.

Reynolds, the maker of Camel cigarettes and Grizzly smokeless tobacco said third-quarter profit rose to $358 million, or $1.21 a share, from $309 million, or $1.05 a share, a year earlier.

Analysts on average forecast $1.21 a share, according to Reuters Estimates.

Sales rose 4.9 percent to $2.3 billion.

Profit in the R.J. Reynolds cigarette business rose 4.9 percent on increased prices and a larger percentage of sales coming from its higher-priced brands.