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RJR NABISCO REPORTS 1991 YEAR-END RESULTS

 RJR NABISCO REPORTS 1991 YEAR-END RESULTS
 NEW YORK, Feb. 3 /PRNewswire/ -- RJR Nabisco Holdings Corp.


today announced 1991 full-year net income of $368 million, compared with a net loss of $429 million in 1990.
 Net income per common share for the year was $.22 ($.37 on a fully diluted basis), compared with a net loss per common share of $1.11 (net loss of $.39 on a fully diluted basis) in 1990.
 Operating income for the year was $2.93 billion, or 4 percent higher than $2.82 billion the year before. Net sales for 1991 were $14.99 billion, or 8 percent higher than $13.88 billion in 1990.
 "The $797 million swing in net income from 1990 to 1991 was the result of an aggressive program to deleverage the company and maintain strong operating performance in a very competitive business environment," said RJR Nabisco Chairman and Chief Executive Officer Louis V. Gerstner Jr.
 "It really was a milestone year for the company," Gerstner continued. "We put the LBO behind us several years ahead of schedule, maintained a steady stream of innovative new products, and began focusing hard on new business opportunities -- especially in international markets."
 For the fourth quarter of 1991, net income was $161 million, compared with a net loss of $13 million in the fourth quarter of 1990. Net income per common share in the quarter was $.14 (also $.14 on a fully diluted basis), compared with a net loss per common share of $.10 (net income of $.02 on a fully diluted basis) in the quarter a year earlier. Fourth-quarter operating income was $752 million, or 3 percent less than $775 million in the fourth quarter of 1990. Net sales in the fourth quarter of 1991 were $3.98 billion, or 8 percent higher than $3.69 billion in the year-earlier quarter.
 Net income in both the fourth quarter and the year 1991 was reduced by $28 million of net charges included in "Other (expense) income, net," as a result of writeoffs for unamortized debt issuance costs, and charges for unrealized losses from interest rate hedges related to previous bank agreements that were refinanced, partially offset by a credit for a change in estimated health care liabilities. The net loss for the year 1990 included a $33 million after-tax extraordinary gain from early retirement of debt, and the fourth-quarter 1990 net loss included a $75 million after-tax extraordinary loss related to taxes from a recapitalization that year.
 Tobacco
 For the full year, RJR Nabisco's worldwide tobacco business reported net sales of $8.54 billion, 6 percent higher than $8.05 billion the year before. Business unit contribution (operating income before amortization of trademarks and goodwill) for the full-year 1991 of $2.73 billion was about even with $2.73 billion the year before. Full-year net sales in the international tobacco unit increased 19 percent and business unit contribution increased 21 percent, primarily as a result of continued volume gains in Europe, the Middle East and Asia. Net sales in the domestic tobacco unit for the full year were 1 percent higher than the year before, while business unit contribution declined 4 percent. Domestic tobacco results reflected favorable pricing and raw material costs that were more than offset by lower volume and increased marketing expenditures.
 For the fourth quarter of 1991, net sales for RJR Nabisco's worldwide tobacco business were $2.20 billion, or 7 percent higher than $2.06 billion in 1990. Business unit contribution was $637 million, or 8 percent below $691 million in the fourth quarter of 1990. Fourth quarter 1991 net sales in the international tobacco unit rose 12 percent from the quarter a year earlier and business unit contribution rose 10 percent, primarily due to gains in Europe and the Middle East. Net sales in the domestic tobacco unit for the fourth quarter of 1991 rose 4 percent and business unit contribution declined 11 percent. Domestic tobacco results in the latest fourth quarter reflected volume declines which, combined with increased marketing expenditures, more than offset favorable pricing.
 Food
 RJR Nabisco's food businesses reported full-year 1991 net sales of $6.45 billion, or 11 percent higher than $5.83 billion a year earlier. Business unit contribution for full-year 1991 rose 15 percent to $920 million from $802 million in 1990. After including results for Latin American food operations, which were not consolidated until the beginning of 1991, and excluding 1990 results for candy businesses that were sold that year, food net sales for full-year 1991 rose 2 percent and business uint contribution rose 8 percent. Results in 1991 for food operations reflected lower commodity costs and productivity gains that were partially offset by lower volumes.
 For the fourth quarter of 1991, food net sales were $1.78 billion, or 9 percent higher than $1.63 billion in the fourth quarter of 1990. Business unit contribution was $295 million in the fourth quarter of 1991, an 11 percent increase over $265 million in the quarter a year earlier. Food net sales were slightly higher and business unit contribution was up 3 percent, when results for Latin American food operations are included in 1990.
 RJR Nabisco Holdings Corp. is the indirect parent of RJR Nabisco, Inc., an international consumer products company. RJR Nabisco's major operating units are R.J. Reynolds Tobacco Co., R.J. Reynolds Tobacco International, Inc., and the Nabisco Foods Group.
 RJR NABISCO HOLDINGS CORP.
 CONSOLIDATED CONDENSED STATEMENTS OF INCOME
 (Dollars in millions except per share amounts)
 3 mos. ended 12 mos. ended
 12/31/91 12/31/90 12/31/91 12/31/90
 Net sales:
 Tobacco $ 2,198 $ 2,062 $ 8,540 $ 8,053
 Food 1,778 1,625 6,449 5,826
 Consolidated $ 3,976 $ 3,687 $ 14,989 $ 13,879
 Business unit contribution:
 Tobacco $ 637 $ 691 $ 2,726 $ 2,729
 Food 295 265 920 802
 Corporate (28) (28) (103) (105)
 Business unit contribution 904 928 3,543 3,426
 Amortization of trademarks
 and goodwill (152) (153) (609) (608)
 Operating income 752 775 2,934 2,818
 Cash interest expense (326) (322) (1,326) (1,401)
 Non-cash interest expense (145) (354) (787) (1,599)
 Total interest expense (471) (676) (2,113) (3,000)
 Amortization of debt
 issuance costs (6) (28) (104) (176)
 Other (expense) income,
 net (25) 7 (69) (44)
 Income (loss) before
 income taxes 250 78 648 (402)
 Provision for income
 taxes 89 16 280 60
 Income (loss) before
 extraordinary item 161 62 368 (462)
 Extraordinary item - gain
 (loss) on early extinguishment
 of debt, net of income
 taxes --- (75) --- 33
 Net income (loss) $ 161 $ (13) $ 368 $ (429)
 Preferred stock
 dividends 8 50 173 50
 Net income (loss) applicable
 to common stock $ 153 $ (63) $ 195 $ (479)
 Net income (loss) per common
 and common equivalent share:
 Income (loss) before
 extraordinary item $ 0.14 $ 0.02 $ 0.22 $ (1.19)
 Extraordinary item --- (0.12) --- 0.08
 Net income (loss) (A) $ 0.14 $ (0.10) $ 0.22 $ (1.11)
 Avg. no. of common and common
 equiv. shares outstanding
 (in thousands) 1,088,779 632,670 887,622 431,818
 (A) If calculated on a fully diluted basis, including securities that produce an anti-dilutive result, net income (loss) per common and common equivalent share amounted to $.14 and $.02 for the three months ended Dec. 31, 1991 and 1990, respectively, and $.37 and $(.39) for the 12 months ended Dec. 31, 1991 and 1990, respectively.
 -0- 2/3/92
 /CONTACT: Jason Wright of RJR Nabisco, 212-258-5770/ CO: RJR Nabisco Holdings Corp. ST: New York IN: REA SU: ERN


BR-BN -- AT002 -- 6035 02/03/92 09:32 EST
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Date:Feb 3, 1992
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