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Universal Corporation Reports Improved Third Quarter Results

Tue, 07 Feb 2012 21:00:00 +0000

Universal Corporation Reports Improved Third Quarter Results

PR Newswire

RICHMOND, Va., Feb. 7, 2012 /PRNewswire/ --

HIGHLIGHTS

Third Quarter

Diluted earnings per share of $2.06, up 13% from prior year

Segment operating income of $83 million, up $6 million from prior year

Nine Months

Segment operating income of $175 million, down $22 million from prior year

Diluted earnings per share of $2.34, after $1.39 in net unusual charges

Unusual charges included a $49 million charge on loss of appeal of European Commission fine

George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE:UVV), reported that net income for the third quarter of fiscal year 2012, which ended on December 31, 2011, was $58.5 million, or $2.06 per diluted share, about 12% above last year's net income of $52.3 million, or $1.82 per diluted share, for the same period. These results included the effect of several unusual items, largely related to asset sales, which are described in the table below and amount to net pretax benefits of $10.7 million ($0.25 per diluted share) for the third quarter of fiscal year 2012 and $8.4 million ($0.18 per diluted share) for the same period last year. Segment operating income, which excludes those unusual items, increased by $5.6 million to $83.4 million as improved performance in the Company's Other Regions segment outweighed declines in the North America and the Other Tobacco Operations segments. Revenues for the quarter of $672 million were down about 2%, reflecting lower leaf prices on higher volumes.

For the nine months ended December 31, 2011, net income was $66.3 million, or $2.34 per diluted share, including the effect of the charge in the second fiscal quarter for the European Commission fine described below. That charge and other unusual items amounted to a net pretax charge of $38.6 million ($1.39 per diluted share) for the nine-month period. Those results compare to last year's net income of $129.4 million, or $4.46 per diluted share, which also includes unusual items amounting to a net benefit of $12.8 million ($0.28 per diluted share).

Segment operating income declined by $21.8 million for the nine-month period ended December 31, 2011, compared with the prior year. Those results included the first quarter impact from last year's assignment of Brazilian farmer contracts to Philip Morris International ("PMI") and a portion of the decline in processing volumes in the Company's North America segment, as well as reduced volumes and margins in the Other Tobacco operations segment. Operating results in this period included $12 million in dividend income from unconsolidated subsidiaries. Consolidated revenues fell by 5% to $1.8 billion for the nine months ended December 31, 2011, in part due to lower leaf prices on higher shipments, and in part because toll processing volumes replaced a portion of leaf sales to PMI as a result of the contract assignments last year.

The following table sets forth the unusual items included in reported results, none of which are included in segment results:

	Three Months Ended December 31,		Nine Months Ended December 31,
(in millions of dollars, except per share amounts)	2011	2010	2011	2010
Charges and (gains)
Charge for (reversal of) European Commission fines in Italy and Spain (1)	$ —	$ —	$ 49.1	$ (7.4)
Restructuring and impairment costs, primarily in the United States, South America,
and Europe (2)	0.4	11.0	10.2	14.0
Gain on fire loss insurance settlement in Europe (3)	—	—	(9.6)	—
Gain on sale of facility in Brazil (4)	(11.1)	—	(11.1)	—
Gain on assignment of farmer contracts and sale of related assets in Brazil (5)	—	(19.4)	—	(19.4)

Total effect on operating income	$ (10.7)	$ (8.4)	$ 38.6	$ (12.8)

Total effect on net income	$ (7.0)	$ (5.1)	$ 39.4	$ (8.0)

Total effect on diluted earnings per share	$ 0.25	$ 0.18	$ (1.39)	$ 0.28

(1) Fiscal year 2012 - fines and accumulated interest related to the September 9, 2011, decision by the General Court of the European Union rejecting an Italian subsidiary's application to reinstate immunity related to infringements of European Union antitrust law in the Italian raw tobacco market.
Fiscal year 2011 - the reversal of a portion of a European Commission fine recorded by an Italian subsidiary in 2005 related to the Spanish tobacco processing market, following a decision of the General Court of the European Union that reduced the amount of the fine by half.
(2) Restructuring and impairment charges, primarily related to plant closures and workforce reductions in several areas.
(3) Fire loss insurance settlement in June 2011 related to a plant fire in Europe in 2010. The operating assets have been replaced.
(4) Sale of land and storage buildings in Brazil in November 2011.
(5) Assignment of farmer production contracts and related assets in Brazil in October 2010.

Mr. Freeman stated, "I am pleased with our strong third quarter performance, which is the result of our successful efforts in managing our business in this year's oversupply situation. We are working closely with customers, both old and new, to meet their requirements, and we are carefully monitoring our commitments for the upcoming crop cycle.

"Recent fiscal quarters reflected a slower start to the buying seasons in Brazil and Malawi, but we believe that we are back on track with shipment timing in most origins. Green prices have generally declined, as we expected. Although we continue to deal with the previously anticipated effects of the decreased processing volumes in North America and the challenging markets in our oriental and dark tobacco operations, impacts from the global oversupply have been moderate. Our sales activity has been robust, and our hard-working teams around the globe are united.

"While our results included several unusual charges and benefits this year, our underlying business results have remained healthy, and we are performing at levels comparable to our historical norms. During the third quarter, despite volatile financial markets, we successfully refinanced our primary $450 million global working capital facility, and our balance sheet remains strong. In addition, we have maintained our focus on providing returns to our shareholders and increased our common stock dividend for the 41st consecutive year.

"Although it is too early to report specifically about the coming crop season, we continue to expect this year's oversupply situation to influence pricing and margins into the next fiscal year. At the same time, we do anticipate that crop sizes will come down in many of our growing regions during the next year, which could mitigate those pressures, and markets for some grades may be tightening. Our customers continue to signal their desire for high quality, compliant tobacco, which has always been our core strength. I am excited about our prospects for the future as we continue to develop our plans and programs to support stable supplier markets, enhance production efficiencies, and improve sustainable tobacco production."

FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS:

Third Quarter

Operating income for the third quarter of fiscal year 2012, for the flue-cured and burley tobacco operations, which comprise the North America and Other Regions segments, increased by 11% to $82.6 million, compared to the same period last year, on a combination of strong results for the Other Regions segment and declines in North America. Revenues for the group were up about 1% at $639.2 million.

Income from operations for the Other Regions segment was up 46% from last year, to $69.4 million. The Africa region showed improvement, as sales growth on larger crops in some origins and a favorable comparison to delayed shipments last year were offset somewhat by reductions in third party processing. Earnings for the South America region were up, primarily due to higher shipments that reflected a catch-up of seasonal deliveries delayed from earlier quarters, along with savings from cost cutting efforts and lower costs related to a smaller farmer base, including those related to advances. Earnings for the Asia region declined for the quarter, primarily due to lower trading levels. Results for the Other Regions segment results also included $6 million in dividend income from unconsolidated subsidiaries. Revenues for that segment of $529 million were up nearly 5% on higher shipment volumes in Africa and South America, partly offset by lower trading volumes in Asia, as well as the pass-through to customers of lower green prices. Operating income for the North America segment decreased by 50% to $13.2 million on reduced third party processing volumes and the absence of last year's earnings from the Canadian facility, which was closed in March 2011. Revenues for this segment of $109.7 million were down 12%, as reduced green processing volumes were partially offset by an increase in current and old crop direct leaf sales.

Nine Months

Operating income for the flue-cured and burley tobacco operations was $170.6 million for the nine months ended December 31, 2011, compared to $180.9 million for the same period in the prior year. Revenues of $1.7 billion were relatively flat compared with last year. Earnings for the Other Regions segment for the nine months increased about 6% to $146.7 million, compared to the same period last year. In the South America region, the effect of reduced leaf sales to PMI related to last year's assignment of farmer contracts was mitigated by increased processing volumes and cost savings efforts. Africa region operations reflected lower margins in most origins, in part related to business mix and lower prices, balanced by higher shipments in some origins and lower green leaf costs. Results for the Asia region declined on a combination of lower margins on trading volumes and an unfavorable comparison on currency remeasurement in the Philippines. In Europe, lower volumes and higher leaf costs were offset by insurance recoveries. Selling, general, and administrative expenses for the segment were down, due primarily to lower costs related to a smaller farmer base in South America. In addition, results for the Other Regions segment included $12 million in dividend income from unconsolidated subsidiaries. Revenues for the Other Regions segment of $1.4 billion were down about 3%, reflecting lower leaf volumes in South America, higher volumes in Africa, and lower prices generally, as our customers received benefits of lower leaf prices at the farm level. North America's results fell by 44% to $23.9 million on the change in processing volumes, although leaf sales were up for the period. In addition, cost savings from restructuring efforts moderated the negative impact of the closure of the Company's Canadian operations. These factors also caused revenue to fall by about 12%.

OTHER TOBACCO OPERATIONS:

The Other Tobacco Operations segment operating income declined by $2.6 million for the quarter and $11.4 million for the nine months, compared with the same periods in the previous fiscal year. The declines in both periods were driven mainly by lower results in the dark tobacco operations on reduced volumes and margins, reflecting weaker domestic retail markets, as well as the effects of last year's severe weather-related crop damage in Indonesia. Results from the oriental tobacco joint venture improved for the quarter on the absence of one-time charges for business realignment taken in the same period last year. However, joint venture results were down for the nine months, partly due to reduced volumes from shipments delayed into the fourth quarter, as well as lower margins, which were also affected by inventory writedowns. Revenues for this segment decreased for the quarter by $24.4 million, or 42%, as a result of the transfer of some business from the just-in-time Special Services group to the Other Regions segment, the timing of shipments of oriental tobaccos to the United States, and lower dark tobacco volumes. Similar factors influenced a $45.5 million drop in revenues for the nine-month period.

OTHER ITEMS:

In September 2011, the Company announced that the General Court of the European Union issued a decision rejecting the appeal of Deltafina, S.p.A, its Italian subsidiary. That appeal related to the European Commission's revocation of Deltafina's immunity from a fine of euro 30 million (about $41 million on September 9, 2011) assessed against Deltafina and Universal jointly for actions in connection with Deltafina's purchase and processing of tobacco in the Italian raw tobacco market between 1995 and 2002. Deltafina has appealed the decision of the General Court to the European Court of Justice. The appeal process could take up to two years. Effective with the September 9, 2011 General Court decision, the Company recorded a charge for the full amount of the fine (euro 30 million) plus accumulated interest (euro 5.9 million). The charge totaled $49.1 million at the exchange rate in effect on the date of the General Court decision.

Cost of sales decreased by about 5% to $1.4 billion for the nine months ended December 31, 2011, and by about 2% for the quarter, primarily as a result of lower green leaf prices in some origins and on lower trading volumes in both periods. Selling, general, and administrative costs fell by about $10 million in both the third quarter and in the first nine months of fiscal year 2012 compared to the previous year. Both periods benefited from a favorable comparison on costs related to a smaller farmer base in South America. In addition, the nine-month period reflects a positive variance from the reversal of non-income tax provisions due to a favorable tax ruling in South America and reduced employment costs as a result of lower performance-based compensation expense in various operations, partially offset by unfavorable variances due to currency remeasurement primarily in South America and Asia.

Interest expense was almost flat for the third quarter and the nine months ended December 31, 2011, compared with the same periods in the previous year. Interest income in the nine months of the current year was about $1 million lower, due to the previous year's recognition of interest income on the return of funds that had been escrowed to bond the appeal of the European Commission fine in Spain.

The consolidated effective income tax rates on pretax earnings were approximately 30% and 41% for the quarter and nine months ended December 31, 2011. The rate for the nine-month period was significantly higher than normal because the Company did not record an income tax benefit on the non-deductible fine portion of the charge recorded in September 2011 for the European Commission fine and interest in Italy. Without that item, the effective income tax rate would have been approximately 29% for the nine months. That rate and the effective rate for the quarter were lower than the 35% federal statutory rate primarily due to the effect of exchange rate changes on deferred income taxes of certain foreign subsidiaries and to recoveries of prior year state income taxes. The effective income tax rates for the quarter and nine months ended December 31, 2010, were approximately 29% and 30%, respectively. Those rates were lower than the 35% U.S. federal statutory rate primarily due to the recognition of foreign tax credits.

In November 2011, the Company sold land and storage buildings in Brazil in exchange for other property and $9.4 million in cash. The transaction resulted in a gain of $11.1 million, which is reported in other income in the consolidated statements of income.

Additional information

Amounts described as "net income" and "earnings per diluted share" that are included in the previous discussion are attributable to Universal Corporation and exclude earnings related to non-controlling interests in subsidiaries.

This information includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions readers that any statements contained herein regarding earnings and expectations for its performance are forward-looking statements based upon management's current knowledge and assumptions about future events, including anticipated levels of demand for and supply of its products and services; costs incurred in providing these products and services; timing of shipments to customers; changes in market structure; government regulation; product taxation; industry consolidation and evolution; and general economic, political, market, and weather conditions. Actual results, therefore, could vary from those expected. A further list and description of these risks, uncertainties, and other factors can be found in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2011, and in other documents the Company files with the Securities and Exchange Commission. This information should be read in conjunction with the Annual Report on Form 10-K for the year ended March 31, 2011.

At 5:00 p.m. (Eastern Time) on February 7, 2012, the Company will host a conference call to discuss these results. Those wishing to listen to the call may do so by visiting www.universalcorp.com at that time. A replay of the webcast will be available at that site through May 7, 2012. A taped replay of the call will be available through February 28, 2012, by dialing (855) 859-2056. The confirmation number to access the replay is 49266424.

Headquartered in Richmond, Virginia, Universal Corporation is the leading global leaf tobacco merchant and processor and conducts business in more than 30 countries. Its revenues for the fiscal year ended March 31, 2011, were $2.6 billion. For more information on Universal Corporation, visit its web site at www.universalcorp.com.

UNIVERSAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of dollars, except per share data)
	Three Months Ended December 31,		Nine Months Ended December 31,
	2011	2010	2011	2010
	(Unaudited)		(Unaudited)
Sales and other operating revenues	$ 672,420	$ 688,208	$ 1,792,911	$ 1,891,312
Costs and expenses
Cost of goods sold	525,315	534,164	1,432,022	1,501,757
Selling, general and administrative expenses	64,747	74,826	183,985	194,103
Other income	(11,111)	(19,368)	(20,703)	(19,368)
Restructuring and impairment costs	399	10,995	10,220	13,964
Charge for (reversal of) European Commission fines in Italy and Spain	—	—	49,091	(7,445)
Operating income	93,070	87,591	138,296	208,301
Equity in pretax earnings (loss) of unconsolidated affiliates	1,072	(1,439)	(2,264)	953
Interest income	519	754	1,240	2,614
Interest expense	6,175	6,257	17,373	17,245
Income before income taxes and other items	88,486	80,649	119,899	194,623
Income taxes	26,884	23,064	48,972	58,837
Net income	61,602	57,585	70,927	135,786
Less: net (income) loss attributable to noncontrolling interests in subsidiaries	(3,149)	(5,287)	(4,625)	(6,337)
Net income attributable to Universal Corporation	58,453	52,298	66,302	129,449
Dividends on Universal Corporation convertible perpetual preferred stock	(3,712)	(3,712)	(11,137)	(11,137)
Earnings available to Universal Corporation common shareholders	$ 54,741	$ 48,586	$ 55,165	$ 118,312

Earnings per share attributable to Universal Corporation common shareholders:
Basic	$ 2.36	$ 2.05	$ 2.38	$ 4.93
Diluted	$ 2.06	$ 1.82	$ 2.34	$ 4.46

UNIVERSAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
	December 31, 2011	December 31, 2010	March 31, 2011
	(Unaudited)	(Unaudited)
ASSETS
Current
Cash and cash equivalents	$ 152,368	$ 91,427	$ 141,007
Accounts receivable, net	406,541	292,490	335,575
Advances to suppliers, net	94,732	132,815	160,616
Accounts receivable - unconsolidated affiliates	912	35,978	10,433
Inventories - at lower of cost or market:
Tobacco	862,991	940,168	742,422
Other	57,261	50,551	48,647
Prepaid income taxes	13,661	8,633	18,661
Deferred income taxes	52,766	43,669	47,009
Other current assets	71,121	65,784	73,864
Total current assets	1,712,353	1,661,515	1,578,234
Property, plant and equipment
Land	16,976	15,490	14,851
Buildings	225,010	265,390	257,380
Machinery and equipment	531,183	552,575	555,316
	773,169	833,455	827,547
Less accumulated depreciation	(469,414)	(512,413)	(510,844)
	303,755	321,042	316,703
Other assets
Goodwill and other intangibles	99,293	99,602	99,546
Investments in unconsolidated affiliates	84,306	103,821	115,478
Deferred income taxes	13,683	36,373	18,177
Other noncurrent assets	56,249	96,493	99,729
	253,531	336,289	332,930
Total assets	$ 2,269,639	$ 2,318,846	$ 2,227,867
See accompanying notes.

UNIVERSAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
	December 31, 2011	December 31, 2010	March 31, 2011
	(Unaudited)	(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Notes payable and overdrafts	$ 130,165	$ 204,769	$ 149,291
Accounts payable and accrued expenses	199,408	180,054	213,014
Accounts payable - unconsolidated affiliates	7,207	15,355	4,154
Customer advances and deposits	45,061	87,934	8,426
Accrued compensation	20,638	19,029	30,201
Income taxes payable	12,085	11,901	12,265
Current portion of long-term obligations	15,000	95,000	95,000
Total current liabilities	429,564	614,042	512,351
Long-term obligations	395,000	322,486	320,193
Pensions and other postretirement benefits	100,690	100,719	102,858
Other long-term liabilities	87,147	47,661	50,213
Deferred income taxes	49,179	44,963	42,847
Total liabilities	1,061,580	1,129,871	1,028,462
Shareholders' equity
Universal Corporation:
Preferred stock:
Series A Junior Participating Preferred Stock, no par value, 500,000 shares
authorized, none issued or outstanding	—	—	—
Series B 6.75% Convertible Perpetual Preferred Stock, no par value,
5,000,000 shares authorized, 219,999 shares issued and outstanding
(219,999 at December 31, 2010, and March 31, 2011)	213,023	213,023	213,023
Common stock, no par value, 100,000,000 shares authorized, 23,245,254
shares issued and outstanding (23,569,443 at December 31, 2010, and
23,240,503 at March 31, 2011)	194,806	193,263	191,608
Retained earnings	844,150	824,244	825,751
Accumulated other comprehensive loss	(62,152)	(53,670)	(44,776)
Total Universal Corporation shareholders' equity	1,189,827	1,176,860	1,185,606
Noncontrolling interests in subsidiaries	18,232	12,115	13,799
Total shareholders' equity	1,208,059	1,188,975	1,199,405
Total liabilities and shareholders' equity	$ 2,269,639	$ 2,318,846	$ 2,227,867
See accompanying notes.

UNIVERSAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of dollars)
	Nine Months Ended December 31,
	2011	2010
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 70,927	$ 135,786
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation	31,496	32,474
Amortization	1,277	1,220
Provisions for losses on advances and guaranteed loans to suppliers	10,432	19,554
Foreign currency remeasurement loss (gain), net	4,812	(1,368)
Equity in net income of unconsolidated affiliates, net of dividends	18,769	1,921
Gain on fire loss insurance settlement	(9,592)	—
Gain on sale of property in Brazil	(11,111)	—
Gain on assignment of farmer contracts and sale of related assets	—	(19,368)
Restructuring and impairment costs	10,220	13,964
Charge for (reversal of) European Commission fines in Italy and Spain	49,091	(7,445)
Other, net	16,289	(3,842)
Changes in operating assets and liabilities, net	(132,623)	(262,251)
Net cash provided (used) by operating activities	59,987	(89,355)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(30,251)	(31,801)
Proceeds from assignment of farmer contracts and sale of related assets	—	—
Proceeds from assignment of farmer contracts and sale of related assets	—	34,946
Proceeds from sale of property, plant and equipment, and other	18,650	2,512
Proceeds from fire loss insurance settlement	9,933	—
Net cash provided (used) by investing activities	(1,668)	5,657
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance (repayment) of short-term debt, net	(11,336)	22,510
Issuance of long-term obligations	—	—
Issuance of long-term obligations	100,000	—
Repayment of long-term obligations	(95,000)	(15,000)
Dividends paid to noncontrolling interests	(94)	(100)
Issuance of common stock	134	—
Repurchase of common stock	(4,004)	(33,450)
Dividends paid on convertible perpetual preferred stock	(11,137)	(11,137)
Dividends paid on common stock	(33,320)	(34,011)
Proceeds from termination of interest rate swap agreements	13,388	—
Other	(3,539)	—
Net cash used by financing activities	(44,908)	(71,188)
Effect of exchange rate changes on cash	(2,050)	360
Net increase (decrease) in cash and cash equivalents	11,361	(154,526)
Cash and cash equivalents at beginning of year	141,007	245,953
Cash and cash equivalents at end of period	$ 152,368	$ 91,427
See accompanying notes.

NOTE 1. BASIS OF PRESENTATION

Universal Corporation, with its subsidiaries ("Universal" or the "Company"), is the leading global leaf tobacco merchant and processor. Because of the seasonal nature of the Company's business, the results of operations for any fiscal quarter are not necessarily indicative of results that could be expected for other quarters or a full fiscal year. All adjustments necessary to state fairly the results for the period have been included and were of a normal recurring nature. Certain amounts in prior year statements have been reclassified to conform to the current year presentation. This Form 10-Q should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2011.

NOTE 2. GUARANTEES AND OTHER CONTINGENT LIABILITIES

Guarantees of bank loans to growers for crop financing and construction of curing barns or other tobacco producing assets are industry practice in Brazil and support the farmers' production of tobacco there. At December 31, 2011, the Company's total exposure under guarantees issued by its operating subsidiary in Brazil for banking facilities of farmers in that country was approximately $33 million ($38 million face amount including unpaid accrued interest, less $5 million recorded for the fair value of the guarantees). About 95% of these guarantees expire within one year, and the remainder expire within two years. The subsidiary withholds payments due to the farmers on delivery of tobacco and forwards those payments to the third-party banks. Failure of farmers to deliver sufficient quantities of tobacco to the subsidiary to cover their obligations to the third-party banks could result in a liability for the subsidiary under the related guarantees; however, in that case, the subsidiary would have recourse against the farmers. The maximum potential amount of future payments that the Company's subsidiary could be required to make at December 31, 2011, was the face amount, $38 million including unpaid accrued interest ($97 million as of December 31, 2010, and $73 million at March 31, 2011). The fair value of the guarantees was a liability of approximately $5 million at December 31, 2011 ($20 million at December 31, 2010, and $21 million at March 31, 2011). In addition to these guarantees, the Company has other contingent liabilities totaling approximately $4 million.

Various subsidiaries of the Company are involved in other litigation and tax examinations incidental to their business activities. While the outcome of these matters cannot be predicted with certainty, management is vigorously defending the claims and does not currently expect that any of them will have a material adverse effect on the Company's financial position. However, should one or more of these matters be resolved in a manner adverse to management's current expectation, the effect on the Company's results of operations for a particular fiscal reporting period could be material.

NOTE 3. EARNINGS PER SHARE

The following table sets forth the computation of earnings per share for the periods presented in the consolidated statements of income.

	Three Months Ended December 31,		Nine Months Ended December 31,
(in thousands, except per share data)	2011	2010	2011	2010
Basic Earnings Per Share
Numerator for basic earnings per share
Net income attributable to Universal Corporation	$ 58,453	$ 52,298	$ 66,302	$ 129,449
Less: Dividends on convertible perpetual preferred stock	(3,712)	(3,712)	(11,137)	(11,137)
Earnings available to Universal Corporation common shareholders
for calculation of basic earnings per share	54,741	48,586	55,165	118,312
Denominator for basic earnings per share
Weighted average shares outstanding	23,238	23,738	23,220	24,010
Basic earnings per share	$ 2.36	$ 2.05	$ 2.38	$ 4.93
Diluted Earnings Per Share
Numerator for diluted earnings per share
Earnings available to Universal Corporation common shareholders	$ 54,741	$ 48,586	$ 55,165	$ 118,312
Add: Dividends on convertible perpetual preferred stock (if
conversion assumed)	3,712	3,712	11,137	11,137
Earnings available to Universal Corporation common shareholders
for calculation of diluted earnings per share	58,453	52,298	66,302	129,449
Denominator for diluted earnings per share:
Weighted average shares outstanding	23,238	23,738	23,220	24,010
Effect of dilutive securities (if conversion or exercise assumed)
Convertible perpetual preferred stock	4,775	4,752	4,769	4,747
Employee share-based awards	368	302	320	262
Denominator for diluted earnings per share	28,381	28,792	28,309	29,019
Diluted earnings per share	$ 2.06	$ 1.82	$ 2.34	$ 4.46

For the nine months ended December 31, 2011 and 2010, certain employee share-based awards were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. These awards included stock appreciation rights and stock options totaling 435,801 shares at a weighted-average exercise price of $55.81 for the nine months ended December 31, 2011, and 669,401 shares at a weighted-average exercise price of $52.48 for the nine months ended December 31, 2010.

NOTE 4. SEGMENT INFORMATION

The principal approach used by management to evaluate the Company's performance is by geographic region, although some components of the business are evaluated on the basis of their worldwide operations. The Company evaluates the performance of its segments based on operating income after allocated overhead expenses (excluding significant non-recurring charges or credits), plus equity in pretax earnings of unconsolidated affiliates.

Operating results for the Company's reportable segments for each period presented in the consolidated statements of income were as follows:

	Three Months Ended December 31,		Nine Months Ended December 31,
(in thousands of dollars)	2011	2010	2011	2010
SALES AND OTHER OPERATING REVENUES
Flue-cured and burley leaf tobacco operations:
North America	$ 109,743	$ 124,072	$ 236,101	$ 243,990
Other regions (1)	529,476	506,568	1,423,275	1,468,326
Subtotal	639,219	630,640	1,659,376	1,712,316
Other tobacco operations (2)	33,201	57,568	133,535	178,996
Consolidated sales and other operating revenues	$ 672,420	$ 688,208	$ 1,792,911	$ 1,891,312
OPERATING INCOME
Flue-cured and burley leaf tobacco operations:
North America	$ 13,234	$ 26,693	$ 23,864	$ 42,383
Other regions (1)	69,382	47,620	146,732	138,530
Subtotal	82,616	74,313	170,596	180,913
Other tobacco operations (2)	814	3,466	4,044	15,492
Segment operating income	83,430	77,779	174,640	196,405

Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates (3)	(1,072)	1,439	2,264	(953)
Restructuring and impairment costs (4)	(399)	(10,995)	(10,220)	(13,964)
Charge for (reversal of) European Commission fines
in Italy and Spain (4)	—	—	(49,091)	7,445
Add: Other income (4)	11,111	19,368	20,703	19,368
Consolidated operating income	$ 93,070	$ 87,591	$ 138,296	$ 208,301

(1) Includes South America, Africa, Europe, and Asia regions, as well as inter-region eliminations.
(2) Includes Dark Air-Cured, Special Services, and Oriental, as well as inter-company eliminations. Sales and other operating revenues for this reportable segment include limited amounts for Oriental because its financial results consist principally of equity in the pretax earnings of an unconsolidated affiliate.
(3) Item is included in segment operating income, but not included in consolidated operating income.
(4) Item is not included in segment operating income, but is included in consolidated operating income.

SOURCE Universal Corporation

Universal Corporation Announces Quarterly Dividends and Adjustment to Conversion Rate

Tue, 07 Feb 2012 19:58:02 +0000

Universal Corporation Announces Quarterly Dividends and Adjustment to Conversion Rate

PR Newswire

RICHMOND, Va., Feb. 7, 2012 /PRNewswire/ -- George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE:UVV), announced today that the Company's Board of Directors declared a quarterly dividend of forty-nine cents ($0.49) per share on the common shares of the Company, payable May 14, 2012, to common shareholders of record at the close of business on April 9, 2012.

In addition, the Board of Directors declared a quarterly dividend of $16.875 per share on the Series B 6.75% Convertible Perpetual Preferred Stock ("Series B Preferred Stock"), payable March 15, 2012, to shareholders of record as of 5:00 p.m. Eastern Time on March 1, 2012.

Effective with the payment of the Company's common stock dividend on February 13, 2012, the Company will adjust the conversion rate on its Series B Preferred Stock. The adjustment of the conversion rate on the Series B Preferred Stock is required by the terms and conditions of the Series B Preferred Stock offering documents due to increases in the cash dividend per share of Universal's common stock. The adjusted conversion rate on the Series B Preferred Stock will be 21.7365 common shares per $1,000 of liquidation preference of Series B Preferred Stock. The new rate, which represents an increase of 0.5%, will be equivalent to a conversion price of approximately $46.01 per common share.

Headquartered in Richmond, Virginia, Universal Corporation is the leading global leaf tobacco merchant and processor and conducts business in more than 30 countries. Its revenues from continuing operations for the fiscal year ended March 31, 2011, were $2.6 billion. For more information on Universal Corporation, visit its web site at www.universalcorp.com.

SOURCE Universal Corporation

Rapid Fire Marketing: CannaCig to See Immediate and Significant Distribution

Mon, 06 Feb 2012 14:00:00 +0000

Rapid Fire Marketing: CannaCig to See Immediate and Significant Distribution

PR Newswire

CARSON CITY, Nev., Feb. 6, 2012 /PRNewswire/ -- Rapid Fire Marketing (OTC Pink: RFMK) announced today that the Company has met with non-profit collectives over the last week and have an agreement in place to provide the CannaCig to 10 dispensaries immediately. The Company is in final discussions and expects to sign a Licensing Agreement with a non-profit for the CannaCig that will help facilitate the distribution of the newly developed product. These agreements will be formally announced in detail once all due diligence is complete and final agreements are signed.

Medical Cannabis Management (MCM) is working with an increasing number of individuals with key connections in the industry who are interested in the potential of the CannaCig. Developments since the initial announcement of the CannaCig has necessitated a concentrated effort towards increasing output of the CannaCig to meet the demand of the market.

"We have really been jumping through hoops to do so many things to meet the demand for the new CannaCig. It's a great problem to have but we are confident that we will be able to meet the rapidly growing demand for this new product," said Mike Amezquita, CEO of MCM. "We are very excited to be working with some of the non-profit organizations we are to ensure the distribution of the CannaCig to medical patients in a legal manner and to increase that distribution over time as well," said Amezquita.

Safe Harbor:
From time to time, the Company may issue news releases that contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. This material may contain statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. For those statements, the Company claims the protection of the safe harbor for forward-looking statement provisions contained in the Private Securities Litigation Reform Act of 1995 and any amendments thereto. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance are not statements of historical fact and may be "forward-looking statements." "Forward-looking statements" are based upon expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties that could cause actual results or events to differ materially from those anticipated.

SOURCE Rapid Fire Marketing

Media Alert: America Lung Association to Host Healthy Air Twitter Party - February 8, 2012 at 2 p.m. (EST)

Mon, 06 Feb 2012 10:10:00 +0000

(February 6, 2012) —

WHAT:
The Lung Association is hosting a Twitter party with air quality experts who will answer participants’ questions including the impact of air pollution on children’s health; how air quality and lung disease are closely related; and what steps parents should take to ensure the Clean Air Act remains a vital public health protection for generations to come.

WHEN:
Wednesday, February 8, 2012, at 2 to 3 p.m. (EST)

WHO:
Paul Billings, Vice President of National Policy and Advocacy, American Lung Association
Peter Iwanowicz, Director of the Healthy Air Campaign, American Lung Association
Janice Nolen, Assistant Vice President of National Policy and Advocacy, American Lung Association
WHY:
Continued attacks by some in Congress to weaken the Clean Air Act have become a serious threat to public health. The latest example is set to play out during a House Energy and Commerce subcommittee meeting scheduled to take place at 10 a.m. (EST) on Wednesday, February 8, 2012. The committee is expected to explore avenues to weak, block or delay the life-saving benefits of the Power Plant Mercury and Air Toxics Standards.
Using the hashtag: #FightingforAir, the Lung Association will tweet live updates from Capitol Hill relaying key points presented during this House committee meeting. Join the Lung Association afterwards for a Twitter party to hear about Congressional efforts to undermine clean air protections that will impact public health, and what you can do to protect your family.

HOW:
Use the hashtag #FightingforAir to join this Twitter party and to submit healthy air questions to @LungAssociation. Participants’ healthy air questions will be answered by Lung Association experts. A raffle featuring prizes from the Lung Association’s online merchandise store will be awarded to select Twitter party participants.

No registration is required.

###
About the American Lung Association Now in its second century, the American Lung Association is the leading organization working to save lives by improving lung health and preventing lung disease. With your generous support, the American Lung Association is “Fighting for Air” through research, education and advocacy. For more information about the American Lung Association, a Charity Navigator Four Star Charity and holder of the Better Business Bureau Wise Giving Guide Seal, or to support the work it does, call 1 800 LUNG USA (1 800 586 4872) or visit www.lung.org .

Universal Corporation Announces Conference Call

Fri, 03 Feb 2012 15:34:41 +0000

Universal Corporation Announces Conference Call

PR Newswire

RICHMOND, Va., Feb. 3, 2012 /PRNewswire/ -- Universal Corporation (NYSE: UVV) will webcast its conference call on February 7, 2012, following the release of its results for the third quarter of fiscal year 2012 after market close on that date. The conference call will begin at 5:00 p.m. Eastern Time and will be hosted by Karen M. L. Whelan, Vice President and Treasurer.

A live webcast of the conference call will be available online on a listen-only basis at www.universalcorp.com. A replay of the webcast conference call will be available at that site until May 7, 2012. A taped replay of the call will also be available from 8:00 p.m. Eastern Time on February 7th until February 28, 2012, at (855) 859-2056. The telephone replay identification number is 49266424.

All remarks made during the conference call will be current at the time of the call, and the language of the call will not be updated to reflect subsequent material developments.

While news media representatives will not be able to ask questions during the webcast, they are welcome to monitor the remarks on a listen-only basis. The use of any comments made by Universal employees or other participants during the call will be restricted for background use only and not for attribution. The contents of the presentation are the property of Universal Corporation, protected by copyright law, and may not be reproduced in any form without the written permission of Universal Corporation. Rebroadcast of the copyrighted call or any portion thereof is prohibited.

SOURCE Universal Corporation

Rob the 'Electronic Cigarette Guy': Electronic Cigarettes Now the Choice of Celebrities to Help Them Break Their Own Smoking Addictions

Fri, 03 Feb 2012 13:25:00 +0000

Rob the 'Electronic Cigarette Guy': Electronic Cigarettes Now the Choice of Celebrities to Help Them Break Their Own Smoking Addictions

PR Newswire

MISSOULA, Mont., Feb. 3, 2012 /PRNewswire/ -- In his latest communique to the media, Rob the "electronic cigarette guy" has noted that increasing numbers of celebrities are now using electronic cigarette devices to help them stop smoking. His site, which features electronic cigarette reviews, has attracted international attention as an excellent source of unbiased evaluations of all major electronic cigarette devices.

Quoting Rob, himself a long-time smoker, "We are now seeing all sorts of Hollywood celebrities being seen using electronic cigarette devices. Stars of stage, screen and TV are finding out what I've known for years now - that these devices are super ways to combat the smoking habit and improve one's overall health."

Rob, who is at present 34 years old, had been a heavy smoker for many years. Becoming a father (now with 4 kids) forced him to reconsider the health impact of his smoking habit. "I have kids, you know, and I wanted to make sure that my life would not be cut short by cancer or heart problems. I needed to make a drastic change. Discovering e-cigarettes back in 2009 has completely changed my life. And I want to see others helped as well. That's why we have the website, to get the word out on what's available."

On his journey to better health and to end his smoking addiction, Rob has purchased just about every e-cigarette device out there. "Right now I have about 20 different models. In my collection are some of the very earliest devices ever manufactured. The devices being sold today have many more features, are safer, cleaner, and easier to operate than ones sold in the past."

One of the challenges, according to Rob, is the conflicting manufacturer claims. "In an effort to make that sale, every electronic cigarette maker will naturally claim that their model is the best. Most people feel that the information on the manufacturer's website is not objective, so they are looking for information from people, average people like them, who may have purchased and used the devices. They want an honest appraisal from someone with no hidden agenda. That's exactly why we provide the safe cig review."

At his site, visitors can view an informative chart that summarizes information about each different type, such as the blu electronic cigarette or the green smoke device, which is gaining widespread recognition. Rob also allows other users of these devices to post their comments about their own experiences with each device.

"We try to provide all the information you might be looking for if you were interested in making a purchase," said Rob. "We list the prices of the kits, available accessories, what flavors the cartridges are available in, nicotine levels, the average delivery times and overall user ratings."

A special feature of Rob's website is a one-click button that will allow the user to go directly to the manufacturer website to use any coupon codes that they may have, once they have decided to purchase a specific model.

"When you make an electronic device purchase, it is convenient to also be able to order a bulk pack of cartridges, or a USB charger if you work all day near a computer, or if you need an extra battery charger for use while traveling -- we give you all the details about that model, including current prices, so that you have all the information you need at your fingertips."

The centerpiece of the site, according to Rob, is the user-submitted reviews. "These are completely unsolicited and submitted by others who visit our site. It's very helpful to see when a consensus of opinions form around a product. It's one thing if I make a comment about an electronic cigarette device; it's another thing altogether if 6 other people agree with me and say so. That's advice that a consumer can rely on. That's what I want to provide."

MEDIA CONTACT:

Rob "The E-Cig Guy"
Missoula, Montana
618 409 7665
rob@electroniccigaretteguy.com
http://www.electroniccigaretteguy.com

This press release was issued through eReleases(R). For more information, visit eReleases Press Release Distribution at http://www.ereleases.com.

SOURCE Electronic Cigarette Guy

RAI Board Advisory on Dividend

Thu, 02 Feb 2012 18:27:14 +0000

RAI Board Advisory on Dividend

PR Newswire

WINSTON-SALEM, N.C., Feb. 2, 2012 /PRNewswire/ -- Reynolds American Inc. (NYSE: RAI) has announced the following: "RAI board declares quarterly cash dividend."

Go to RAI's website, www.reynoldsamerican.com, to read the full release.

Web Disclosure

RAI's website, www.reynoldsamerican.com, is the primary source of publicly disclosed news about RAI and its operating companies. We use the website as our primary means of distributing quarterly earnings and other company news. We encourage investors and others to register at www.reynoldsamerican.com to receive alerts when news about the company has been posted.

ABOUT US

Reynolds American Inc. (NYSE: RAI) is the parent company of R.J. Reynolds Tobacco Company; American Snuff Company, LLC; Santa Fe Natural Tobacco Company, Inc.; and Niconovum AB.

Copies of RAI's news releases, annual reports, SEC filings and other financial materials, including risk factors containing forward-looking information, are available at www.reynoldsamerican.com.

SOURCE Reynolds American Inc.

Indianapolis Council Delivers Victory for Smoke-Free Air -- Mayor Ballard Should Sign Into Law

Tue, 31 Jan 2012 15:42:18 +0000

Indianapolis Council Delivers Victory for Smoke-Free Air -- Mayor Ballard Should Sign Into Law

PR Newswire

WASHINGTON, Jan. 31, 2012 /PRNewswire-USNewswire/ -- Statement of Matthew L. Myers President, Campaign for Tobacco-Free Kids:

(Logo: http://photos.prnewswire.com/prnh/20080918/CFTFKLOGO)

"The Indianapolis City-County Council last night delivered a long-awaited victory for health and the public's right to breathe clean air by voting to make all restaurants and bars and most other workplaces smoke-free. We urge Mayor Greg Ballard to sign this legislation into law and protect all Indianapolis residents and workers from the serious health hazards of secondhand smoke. Mayor Ballard should reconsider his threat to veto the legislation unless it is weakened by adding even more exemptions. Polling has shown that 70 percent of Indianapolis voters support a law to make all restaurants, bars and other workplaces smoke-free.

"With the nation's eyes on the city as it hosts the Super Bowl, there is no better time for Indianapolis to set a positive example for health and join the growing list of great cities that are smoke-free. Indianapolis is one of the largest U.S. cities without a strong smoke-free law that includes restaurants and bars. Nationwide, 29 states, Washington, D.C., Puerto Rico, the U.S. Virgin Islands and more than 640 cities have laws requiring smoke-free restaurants and bars. As the Indianapolis City-County Council recognized, no one should have to put their health at risk in order to earn a paycheck or enjoy a night out."

Background on Secondhand Smoke and Smoke-Free Laws
The need for protection from secondhand smoke in all workplaces and public places has never been clearer. In issuing a groundbreaking report on secondhand smoke in June 2006, U.S. Surgeon General Richard Carmona stated, "The debate is over. The science is clear: Secondhand smoke is not a mere annoyance, but a serious health hazard that causes premature death and disease in children and nonsmoking adults."

Secondhand smoke contains more than 7,000 chemicals, including hundreds that are toxic and at least 69 that cause cancer. The Surgeon General found that secondhand smoke is a proven cause of lung cancer, heart disease, serious respiratory illnesses, low birth weight and sudden infant death syndrome. The Surgeon General also found that secondhand smoke is responsible for tens of thousands of deaths in the United States each year, there is no safe level of exposure, and only smoke-free laws provide effective protection. The evidence is also clear that smoke-free laws protect health without harming business.

SOURCE Campaign for Tobacco-Free Kids

$5,000 QuitCash Challenge™ Prize Motivates Long-Time Smoker to Kick Butt

Fri, 27 Jan 2012 13:00:00 +0000

$5,000 QuitCash Challenge™ Prize Motivates Long-Time Smoker to Kick Butt

QUITPLAN® Services celebrates Fridley woman's contest win

PR Newswire

MINNEAPOLIS, Jan. 27, 2012 /PRNewswire/ -- A Fridley woman quit smoking after nearly 13 years to win the $5,000 grand prize in QUITPLAN Services' fourth annual QuitCash Challenge. Christine Albertson, 26, was one of more than 3,000 Minnesotans who entered The QuitCash Challenge, kicking their tobacco habit and remaining smoke-free for at least one month.

QUITPLAN Services will celebrate Christine's accomplishment and present her with a check for $5,000 on Friday, January 27, just one week before American Heart Month begins. American Heart Month draws attention to the leading cause of death in the United States, coronary heart disease, which, according to the Centers for Disease Control, can be caused by smoking or exposure to secondhand smoke.

Christine was able to overcome her addiction to tobacco by using nicotine patches, which she has now weaned off of completely. Quitting was not an easy process for Christine, but having a plan, strong support from her family and friends, and motivation from the contest helped her stay on track and stay quit.

"We are thrilled that The QuitCash Challenge motivated Christine to quit and that she was able to take part in the contest to accomplish her goal," said David Willoughby, Chief Executive Officer of Clearway Minnesota. "We commend all Minnesotans who entered The QuitCash Challenge for taking the steps toward a healthier life."

Other prizes were awarded for contest participants as well. The first runner-up and winner of a 42-inch HDTV is Adam Novak from Maplewood.

Of the 3,050 contestants, 64 percent were women and 36 percent were men. Hennepin County had the highest number of entries with 654, followed by Ramsey County with 289 entries. The 11 county metro area was represented by 59 percent of contestants (1,811), while 41 percent of participants (1,239, an increase of 135 people from 2010) were from outstate. Nearly all 87 counties were represented in this year's challenge.

Launched by ClearWay Minnesota in 2001, QUITPLAN Services offers all Minnesotans year-round, free access to quit-smoking counseling and can provide individuals with nicotine patches, gum or lozenges. Minnesotans can find out about all the free help to quit smoking available through QUITPLAN Services by visiting quitplan.com or calling 1-888-354-PLAN (7526).

QUITPLAN® Services for Minnesotans include:

The QUITPLAN® Helpline – The QUITPLAN Helpline offers telephone counseling and free nicotine patches, lozenges or gum to eligible callers.
quitplan.com – The website offers free lifetime membership, helpful quitting tools and activities and the option to connect online with thousands of others who have chosen to quit tobacco.
QUITPLAN® at Work – The QUITPLAN at Work program offers free on-site professional group counseling for eligible businesses with at least eight employees ready to stop smoking.

About ClearWay Minnesota(SM)

ClearWay Minnesota is an independent nonprofit organization that improves the health of Minnesotans by reducing the harm caused by tobacco. ClearWay Minnesota serves Minnesota through its grant-making program, QUITPLAN® stop-smoking services and statewide outreach activities. It is funded with 3 percent of the state's 1998 tobacco settlement. For more information on ClearWay Minnesota or QUITPLAN Services, call 952-767-1400 or visit clearwaymn.org.

SOURCE ClearWay Minnesota

Lorillard to Release Fourth Quarter and Full Year 2011 Results on Thursday, February 9, 2012

Wed, 25 Jan 2012 20:00:00 +0000

Lorillard to Release Fourth Quarter and Full Year 2011 Results on Thursday, February 9, 2012

PR Newswire

GREENSBORO, N.C., Jan. 25, 2012 /PRNewswire/ -- Lorillard, Inc. (NYSE: LO), the third largest manufacturer of cigarettes in the United States, today announced that it will release fourth quarter and full year results on Thursday, February 9, 2012.

A conference call for analysts and investors will begin at 9:00 a.m. Eastern Time on Thursday, February 9, 2012, which will be hosted by Murray S. Kessler, Chairman, President and Chief Executive Officer, and David H. Taylor, Executive Vice President, Finance and Planning and Chief Financial Officer. Investors can participate in the conference call by dialing (888) 239-6824 (domestic) or (706) 902-3787 (international). The passcode for this event is: 41255791.

The news release and a live webcast of the conference call will also be available under the Investor Relations section of Lorillard's website at www.lorillard.com.

The conference call will be available for replay in its entirety through February 16, 2012. If you wish to listen to the replay of this conference call, please visit Lorillard's website at www.lorillard.com or dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and enter passcode: 41255791.

About Lorillard, Inc.

Lorillard, Inc. (NYSE: LO), through its Lorillard Tobacco Company subsidiary, is the third largest manufacturer of cigarettes in the United States. Founded in 1760, Lorillard is the oldest continuously operating tobacco company in the U.S. Newport, Lorillard's flagship menthol-flavored premium cigarette brand, is the top selling menthol and second largest selling cigarette in the U.S. In addition to Newport, the Lorillard product line has four additional brand families marketed under the Kent, True, Maverick, and Old Gold brand names. These five brands include 43 different product offerings which vary in price, taste, flavor, length and packaging. Lorillard maintains its headquarters and manufactures all of its products in Greensboro, North Carolina.

Forward-Looking Statements

Certain statements made in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words "expect," "intend," "plan," "anticipate," "estimate," "believe," "may," "will be," "will continue," "will likely result" and similar expressions. In addition, any statement that may be provided by management concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible actions by Lorillard, Inc. are also forward-looking statements as defined by the Reform Act.

Forward-looking statements are based on current expectations and projections about future events and are inherently subject to a variety of risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those anticipated or projected. Information describing factors that could cause actual results to differ materially from those in forward-looking statements is available in Lorillard, Inc.'s filings with the Securities and Exchange Commission (the "SEC"), including but not limited to, our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings are available from the SEC over the Internet or in hard copy, and are available on our website at www.lorillard.com. Forward-looking statements speak only as of the time they are made, and we expressly disclaim any obligation or undertaking to update these statements to reflect any change in expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based.

SOURCE Lorillard, Inc.

RAI Advisory on 4Q and Full-Year 2011 Earnings Conference Call

Wed, 25 Jan 2012 13:36:06 +0000

RAI Advisory on 4Q and Full-Year 2011 Earnings Conference Call

PR Newswire

WINSTON-SALEM, N.C., Jan. 25, 2012 /PRNewswire/ -- Reynolds American Inc. (NYSE: RAI) has announced the following: "RAI to host 4Q and full-year 2011 earnings conference call on Feb. 8."

Go to RAI's website, www.reynoldsamerican.com, to read the full release.

Web Disclosure

ABOUT US

Reynolds American Inc. (NYSE: RAI) is the parent company of R.J. Reynolds Tobacco Company; American Snuff Company, LLC; Santa Fe Natural Tobacco Company, Inc.; and Niconovum AB.

Copies of RAI's news releases, annual reports, SEC filings and other financial materials, including risk factors containing forward-looking information, are available at www.reynoldsamerican.com.

SOURCE Reynolds American Inc.

American Lung Association Study Designated as Editor’s Choice Article in Next Edition of the “Journal of the American Medical Association”

Tue, 24 Jan 2012 21:12:16 +0000

Treatment of symptomless acid reflux does not improve asthma in children

Washington, D.C. (January 24, 2012) —

There is debate in the medical community over whether or not undetected gastroesophageal reflux (GER) —a condition caused by acid coming up from the stomach into the esophagus—could contribute to inadequate asthma control in children taking inhaled steroids. According to new research conducted by the American Lung Association Asthma Clinical Research Centers Network (ALA-ACRC)—published today in the Journal of the American Medical Association —adding prescription acid controllers to standard inhaled steroid treatment does not improve asthma symptoms or control in children.
“The use of proton pump inhibitors (PPIs) in children has increased dramatically to more than 2.5 million prescriptions per year,” said Janet T. Holbrook, M.P.H., Ph.D., co-director of the ALA-ACRC Data Coordinating Center at Johns Hopkins. “These drugs are commonly prescribed to patients without symptoms of GER who continue to have problems controlling their asthma while taking effective asthma medications. Therefore, it was important to evaluate whether PPIs are effective for treating asthma in children without the typical symptoms of acid reflux.”
The results of this study—which was co-funded by the American Lung Association and the National Heart, Lung and Blood Institute (NHLBI), a component of the National Institutes of Health—are considered to be the most comprehensive evaluation to date of the efficacy of prescription acid controllers to improve asthma symptoms and control among children. These results are similar to those found in a previous ALA-ACRC study, which examined the relationship between asthma and GER among adults. That study was published in the New England Journal of Medicine in 2009.
In the latest ALA-ACRC trial, 360 children aged 6-17 years with poorly controlled asthma and without symptoms of GER were randomly assigned to receive a daily dose of either lansoprazole—a class of drugs that suppresses the production of stomach acid—or an inactive placebo pill in addition to their inhaled steroid therapy. Compared with placebo, children who received lansoprazole did not show signs of improved lung function or a decrease in asthma symptoms. However, children who took lansoprazole had an increased risk of adverse effects, notably sore throats and bronchitis.
Asthma and GER are common disorders in children and symptoms of GER such as “heartburn,” vomiting, and difficulty swallowing are frequently reported among children with asthma. Approximately 40 percent of participants in the ALA-ACRC trial were identified as having GER.
“Prescription acid control medications are costly; those with asthma can spend as much as $1.1 billion dollars per year,” said Norman H. Edelman, M.D., chief medical officer of the American Lung Association. “Knowing that silent acid reflux does not play a significant role in poor asthma control is the kind of practical research that is helpful immediately for both physicians and patients’ alike. Talk with your doctor before discontinuing any medication, as each patient’s specific needs will vary.”
Takeda Pharmaceuticals and GlaxoSmithKline provided the medication for the study.
The ACRC Network is an American Lung Association sponsored research program that conducts large scale clinical trials with the mission of advancing the care and treatment of people with asthma. The network, with a central data coordinating center and 18 clinical centers located across the country, is the largest nonprofit network of its kind. By placing numerous clinical centers nationwide, the ACRC Network is able to enroll large numbers of patients for clinical trials, thus ensuring relevant research findings can be interpreted with the highest level of scientific authority.
Abstract
Context Asymptomatic gastroesophageal reflux (GER) is prevalent in children with asthma. Untreated GER has been postulated to be a cause of inadequate asthma control in children despite inhaled corticosteroid treatment, but it is not known whether treatment with proton pump inhibitors improves asthma control.
Objective To determine whether lansoprazole is effective in reducing asthma symptoms in children without overt GER.
Design, Setting and Participants The Study of Acid Reflux in Children with Asthma, a randomized, masked, placebo-controlled, parallel clinical trial that compared lansoprazole with placebo in children with poor asthma control who were receiving inhaled corticosteroid treatment. Three hundred six participants enrolled from April 2007 to September 2010 at 19 US academic clinical centers were followed up for 24 weeks. A subgroup had an esophageal pH study before randomization.
Intervention Participating children were randomly assigned to receive either lansoprazole, 15mg/d if weighing less than 30 kg or 30 mg/d if weighing 30 kg or more (n=149), or placebo (n=157).
Main Outcome Measures The primary outcome measure was change in Asthma Control Questionnaire (ACQ) score (range, 0-6; a 0.5-unit change is considered clinically meaningful). Secondary outcome measures included lung function measures, asthma-related quality of life, and episodes of poor asthma control.
Results The mean age was 11 years (SD, 3 years). The mean difference in change (lansoprazole minus placebo) in the ACQ score was 0.2 units (95% CI, 0.0-0.3 units). There were no statistically significant differences in the mean difference in change for the secondary outcomes of forced expiratory volume in the first second (0.0 L; 95% CI, -0.1 to 0.1 L), asthma-related quality of life (-0.1; 95% CI, -0.3 to 0.1), or rate of episodes of poor asthma control (relative risk, 1.2; 95% CI, 0.9-1.5). Among the 115 children with esophageal pH studies, the prevalence of GER was 43%. In the subgroup with a positive pH study, no treatment effect for lansoprazole vs placebo was observed for any asthma outcome. Children treated with lansoprazole reported more respiratory infections (relative risk, 1.3 [95% CI, 1.1-1.6]).
Conclusion In this trial of children with poorly controlled asthma without symptoms of GER who were using inhaled corticosteroids, the addition of lansoprazole, compared with placebo, improved neither symptoms nor lung function but was associated with increased adverse events.
Norman H. Edelman, MD, disclosed stock ownership with Johnson & Johnson.

###
About the American Lung Association Now in its second century, the American Lung Association is the leading organization working to save lives by improving lung health and preventing lung disease. With your generous support, the American Lung Association is “Fighting for Air” through research, education and advocacy. For more information about the American Lung Association, a Charity Navigator Four Star Charity and holder of the Better Business Bureau Wise Giving Guide Seal, or to support the work it does, call 1 800 LUNG USA (1 800 586 4872) or visit www.lung.org .

70 Percent of Indiana Voters Support Law Making Workplaces, Restaurants and Bars Smoke-Free

Tue, 24 Jan 2012 20:51:25 +0000

70 Percent of Indiana Voters Support Law Making Workplaces, Restaurants and Bars Smoke-Free

PR Newswire

Pending legislation, backed by Gov. Daniels, would protect the right to breathe clean air inside all workplaces

INDIANAPOLIS, Jan. 24, 2012 /PRNewswire-USNewswire/ -- A new poll released today finds that Hoosiers overwhelmingly support a law prohibiting smoking inside all workplaces.

(Logo: http://photos.prnewswire.com/prnh/20080918/CFTFKLOGO)

By a strong majority (70 percent to 27 percent), Indiana voters support a law that would prohibit smoking in indoor workplaces and public places, including restaurants and bars. This support comes from a broad-based coalition of voters across the state, including 73 percent of Republicans, 66 percent of Democrats, and 73 percent of Independents.

"Voters know that secondhand smoke is a health hazard, and this poll shows that they want a strong law protecting their right to breathe clean air," said Danielle Patterson, Co-Chair of the Indiana Campaign for Smokefree Air. "The Legislature should listen to the people of Indiana and Governor Daniels and act quickly to make all workplaces smoke-free."

The survey of 500 registered voters was released by the Indiana Campaign for Smokefree Air, a coalition of health groups including the American Heart Association, American Lung Association and Campaign for Tobacco-Free Kids.

The survey also found among Indiana voters:

85 percent believe that secondhand smoke is a health hazard, including 58 percent who say it is a serious health hazard.
71 percent believe the right of employees and customers to breathe clean air in restaurants and bars is more important than the right of smokers to smoke and businesses owners to allow smoking.
84 percent feel all workers should be protected from exposure to secondhand smoke in the workplace.

Hoosiers recognize the benefits of a smoke-free environment, saying that restaurants and bars would be healthier and more enjoyable if they were smoke-free. Nearly nine out of ten voters (88 percent) believe that these places would be healthier, and 84 percent want to be able to enjoy Indiana's restaurants and bars without smelling like smoke at the end of the evening.

"Secondhand smoke is harmful to everyone, and everyone should be protected from it," said Kevin O'Flaherty, Co-Chair of the Indiana Campaign for Smokefree Air. "It is a matter of fairness – everyone should have the right to breathe clean air at work. The Legislature should reject exemptions that would force some workers to continue putting their health at risk in order to earn a paycheck."

The Indiana House is expected to take up the smoke-free legislation (HB 1149) this week. Governor Daniels has called on the Legislature to pass the strongest possible law with the fewest possible exemptions.

The need for protection from secondhand smoke in all workplaces and public places has never been clearer. Secondhand smoke contains thousands of chemicals, many of which are toxic (such as formaldehyde, arsenic and lead), and is a proven cause of cancer, heart disease and respiratory illnesses. Twenty-nine states currently have strong smoke-free laws that include restaurants and bars.

The statewide survey of 500 likely 2012 general election voters in Indiana was conducted by Public Opinion Strategies. The survey was conducted January 21-23, 2012 and has an overall margin of error of +/- 4.38 percentage points.

Related Materials:
Poll Results
Charts of Key Results

SOURCE Campaign for Tobacco-Free Kids

American Lung Association Eager for President Obama’s Comments on Healthy Air during State of the Union Address

Tue, 24 Jan 2012 16:13:52 +0000

Statement of the American Lung Association

Washington, D.C. (January 24, 2012) —

The American Lung Association is looking forward to President Obama’s comments on protecting public health and updating clean air standards during this evening’s State of the Union Address. The Lung Association commends the Obama Administration for its recent actions to protect the public from power plant pollution such as mercury, arsenic and other toxics, and to reduce the health threats associated with cross-state air pollution or “second-hand smog.”
The American Lung Association has begun running print advertisements to publicly thank President Obama for fulfilling the promise of the Clean Air Act to clean up toxic power plant pollution.
Immediately following President Obama’s annual address to the nation, the White House will be hosting a live panel discussion among senior administration officials and on social media to answer questions from the American public. The Lung Association will be on hand for the evening and has asked its supporters to submit questions regarding the administration’s approach to protecting public health and the importance of air that is safe and healthy to breathe.
This year, the Lung Association will work with President Obama and those in Congress who are defending the Clean Air Act to make sure the Environmental Protection Agency enforces the law to protect the public health.

###
About the American Lung Association Now in its second century, the American Lung Association is the leading organization working to save lives by improving lung health and preventing lung disease. With your generous support, the American Lung Association is “Fighting for Air” through research, education and advocacy. For more information about the American Lung Association, a Charity Navigator Four Star Charity and holder of the Better Business Bureau Wise Giving Guide Seal, or to support the work it does, call 1 800 LUNG USA (1 800 586 4872) or visit www.lung.org .

Tobacco: Global Industry Almanac, MarketLine

Tue, 24 Jan 2012 14:43:40 +0000

Tobacco: Global Industry Almanac, MarketLine

PR Newswire

NEW YORK, Jan. 24, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Tobacco: Global Industry Almanac, MarketLine

http://www.reportlinker.com/p0764390/Tobacco-Global-Industry-Almanac-MarketLine.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Tobacco

Tobacco: Global Industry Almanac is an essential resource for top-level data and analysis covering the Tobacco industry. It includes detailed data on market size and segmentation, textual analysis of the key trends and competitive landscape, and profiles of the leading companies. This incisive report provides expert analysis on a global, regional and country basis.

Scope of the Report

* Contains an executive summary and data on value, volume and segmentation

* Provides textual analysis of the industry's prospects, competitive landscape and profiles of the leading companies

* Incorporates in-depth five forces competitive environment analysis and scorecards

* Covers the Global, European and Asia-Pacific markets as well as individual chapters on Australia, Belgium, Brazil, Canada, China, Czech Republic, Denmark, France, Germany, Hungary, India, Italy, Japan, Mexico, Netherlands, Norway, Poland, Russia, Singapore, South Africa, South Korea, Spain, Sweden, United Kingdom and United States.

* Includes a five-year forecast of the industry

Highlights

The global tobacco market grew by 4% in 2010 to reach a value of $720,796.9 million.

In 2015, the global tobacco market is forecast to have a value of $889,275.1 million, an increase of 23.4% since 2010.

Cigarettes is the largest segment of the global tobacco market, accounting for 94.5% of the market's total value.

Asia-Pacific accounts for 50.8% of the global tobacco market value.

China National Tobacco Corporation is the leading player in the global tobacco market, generating a 36.1% share of the market's value.

Why you should buy this report

* Spot future trends and developments

* Inform your business decisions

* Add weight to presentations and marketing materials

* Save time carrying out entry-level research

Market Definition

The tobacco market consists of the retail sale of cigarettes, loose tobacco, chewing tobacco, and cigars and cigarillos. The market is valued according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have been calculated using constant 2010 annual average exchange rates.

TABLE OF CONTENTS

ABOUT DATAMONITOR 2

EXECUTIVE SUMMARY 3

INTRODUCTION 65

What is this report about? 65

Who is the target reader? 65

How to use this report 65

Definitions 65

GLOBAL TOBACCO 66

Market overview 66

Market value 67

Market segmentation i 68

Market segmentation ii 69

Market share 70

Five forces analysis 71

Leading companies 77

Market distribution 87

Market forecasts 88

TOBACCO IN ASIA-PACIFIC 90

Market overview 90

Market value 91

Market segmentation i 92

Market segmentation ii 93

Market share 94

Five forces analysis 95

Leading companies 101

Market distribution 111

Market forecasts 112

TOBACCO IN EUROPE 114

Market overview 114

Market value 115

Market segmentation i 116

Market segmentation ii 117

Market share 118

Five forces analysis 119

Leading companies 125

Market distribution 137

Market forecasts 138

TOBACCO IN FRANCE 140

Market overview 140

Market value 141

Market segmentation i 142

Market segmentation ii 143

Market share 144

Five forces analysis 145

Leading companies 151

Market distribution 163

Market forecasts 164

Macroeconomic indicators 165

TOBACCO IN GERMANY 167

Market overview 167

Market value 168

Market segmentation i 169

Market segmentation ii 170

Market share 171

Five forces analysis 172

Leading companies 178

Market distribution 190

Market forecasts 191

Macroeconomic indicators 192

TOBACCO IN AUSTRALIA 194

Market overview 194

Market value 195

Market segmentation i 196

Market segmentation ii 197

Market share 198

Five forces analysis 199

Leading companies 205

Market distribution 217

Market forecasts 218

Macroeconomic indicators 219

TOBACCO IN BELGIUM 221

Market overview 221

Market value 222

Market segmentation i 223

Market segmentation ii 224

Market share 225

Five forces analysis 226

Leading companies 232

Market distribution 244

Market forecasts 245

Macroeconomic indicators 246

TOBACCO IN BRAZIL 248

Market overview 248

Market value 249

Market segmentation i 250

Market segmentation ii 251

Market share 252

Five forces analysis 253

Leading companies 259

Market distribution 271

Market forecasts 272

Macroeconomic indicators 274

TOBACCO IN CANADA 276

Market overview 276

Market value 277

Market segmentation i 278

Market segmentation ii 279

Market share 280

Five forces analysis 281

Leading companies 287

Market distribution 299

Market forecasts 300

Macroeconomic indicators 301

TOBACCO IN CHINA 303

Market overview 303

Market value 304

Market segmentation i 305

Market segmentation ii 306

Market share 307

Five forces analysis 308

Leading companies 314

Market distribution 318

Market forecasts 319

Macroeconomic indicators 320

TOBACCO IN THE CZECH REPUBLIC 322

Market overview 322

Market value 323

Market segmentation i 324

Market segmentation ii 325

Market share 326

Five forces analysis 327

Leading companies 333

Market distribution 345

Market forecasts 346

Macroeconomic indicators 347

TOBACCO IN DENMARK 349

Market overview 349

Market value 350

Market segmentation i 351

Market segmentation ii 352

Market share 353

Five forces analysis 354

Leading companies 360

Market distribution 370

Market forecasts 371

Macroeconomic indicators 372

TOBACCO IN HUNGARY 374

Market overview 374

Market value 375

Market segmentation i 376

Market segmentation ii 377

Market share 378

Five forces analysis 379

Leading companies 385

Market distribution 397

Market forecasts 398

Macroeconomic indicators 399

TOBACCO IN INDIA 401

Market overview 401

Market value 402

Market segmentation i 403

Market segmentation ii 404

Market share 405

Five forces analysis 406

Leading companies 412

Market distribution 421

Market forecasts 422

Macroeconomic indicators 423

TOBACCO IN ITALY 425

Market overview 425

Market value 426

Market segmentation i 427

Market segmentation ii 428

Market share 429

Five forces analysis 430

Leading companies 436

Market distribution 448

Market forecasts 449

Macroeconomic indicators 450

TOBACCO IN JAPAN 452

Market overview 452

Market value 453

Market segmentation i 454

Market segmentation ii 455

Market share 456

Five forces analysis 457

Leading companies 463

Market distribution 475

Market forecasts 476

Macroeconomic indicators 477

TOBACCO IN MEXICO 479

Market overview 479

Market value 480

Market segmentation i 481

Market segmentation ii 482

Market share 483

Five forces analysis 484

Leading companies 490

Market distribution 502

Market forecasts 503

Macroeconomic indicators 504

TOBACCO IN THE NETHERLANDS 506

Market overview 506

Market value 507

Market segmentation i 508

Market segmentation ii 509

Market share 510

Five forces analysis 511

Leading companies 517

Market distribution 529

Market forecasts 530

Macroeconomic indicators 531

TOBACCO IN NORWAY 533

Market overview 533

Market value 534

Market segmentation i 535

Market segmentation ii 536

Market share 537

Five forces analysis 538

Leading companies 544

Market distribution 553

Market forecasts 554

Macroeconomic indicators 555

TOBACCO IN POLAND 557

Market overview 557

Market value 558

Market segmentation i 559

Market segmentation ii 560

Market share 561

Five forces analysis 562

Leading companies 568

Market distribution 580

Market forecasts 581

Macroeconomic indicators 582

TOBACCO IN RUSSIA 584

Market overview 584

Market value 585

Market segmentation i 586

Market segmentation ii 587

Market share 588

Five forces analysis 589

Leading companies 595

Market distribution 607

Market forecasts 608

Macroeconomic indicators 609

TOBACCO IN SINGAPORE 611

Market overview 611

Market value 612

Market segmentation i 613

Market segmentation ii 614

Market share 615

Five forces analysis 616

Leading companies 622

Market distribution 634

Market forecasts 635

Macroeconomic indicators 636

TOBACCO IN SOUTH AFRICA 638

Market overview 638

Market value 639

Market segmentation i 640

Market segmentation ii 641

Market share 642

Five forces analysis 643

Leading companies 649

Market distribution 661

Market forecasts 662

Macroeconomic indicators 663

TOBACCO IN SOUTH KOREA 665

Market overview 665

Market value 666

Market segmentation i 667

Market segmentation ii 668

Market share 669

Five forces analysis 670

Leading companies 676

Market distribution 688

Market forecasts 689

Macroeconomic indicators 690

TOBACCO IN SPAIN 692

Market overview 692

Market value 693

Market segmentation i 694

Market segmentation ii 695

Market share 696

Five forces analysis 697

Leading companies 703

Market distribution 715

Market forecasts 716

Macroeconomic indicators 717

TOBACCO IN SWEDEN 719

Market overview 719

Market value 720

Market segmentation i 721

Market segmentation ii 722

Market share 723

Five forces analysis 724

Leading companies 730

Market distribution 742

Market forecasts 743

Macroeconomic indicators 744

TOBACCO IN THE UNITED KINGDOM 746

Market overview 746

Market value 747

Market segmentation i 748

Market segmentation ii 749

Market share 750

Five forces analysis 751

Leading companies 758

Market distribution 770

Market forecasts 771

Macroeconomic indicators 772

TOBACCO IN THE UNITED STATES 774

Market overview 774

Market value 775

Market segmentation i 776

Market segmentation ii 777

Market share 778

Five forces analysis 779

Leading companies 785

Market distribution 796

Market forecasts 797

Macroeconomic indicators 798

APPENDIX 800

Data Research Methodology 800

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Tobacco Industry: Tobacco: Global Industry Almanac, MarketLine

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