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RJR NABISCO REPORTS FIRST QUARTER RESULTS

 RJR NABISCO REPORTS FIRST QUARTER RESULTS
 NEW YORK, April 28 /PRNewswire/ -- RJR Nabisco Holdings Corp.


today announced a first quarter 1992 net loss of $15 million, which includes a $159 million (after-tax) extraordinary charge related to the repurchase of high-cost debt during the quarter.
 Absent the extraordinary charge, the company would have reported net income of $144 million. In last year's first quarter, the company reported net income of $5 million. RJR Nabisco reported a net loss per common share of $.02 in the first quarter, compared with a net loss per common share of $.08 a year ago. Absent the extraordinary charge ($.12 per common share), the company would have reported net income per common share of $.10 ($.11 on a fully diluted basis) in the 1992 first quarter.
 Operating income in the first quarter was $664 million, 3 percent higher than $647 million reported in the quarter last year. Net sales were $3.64 billion, or 5 percent higher than $3.47 billion a year ago.
 "Although the recession continued to dampen consumers' enthusiasm for spending in North America, we were encouraged by the first quarter performance of our food and tobacco businesses," said Louis V. Gerstner Jr., RJR Nabisco chairman and chief executive officer.
 "As the result of a very ambitious marketing investment strategy for the domestic tobacco business we had improved volume in the quarter. We've also seen a general improvement in domestic market share trends since mid-1991," Gerstner said. "It is much too early to declare a turnaround in that business, but we like what we've seen so far this year."
 Tobacco
 RJR Nabisco's worldwide tobacco business reported net sales of $2.11 billion, 7 percent higher than $1.96 billion reported in the first quarter last year. Business unit contribution (operating income before amortization of trademarks and goodwill) in the first quarter was $651 million, slightly ahead of the first quarter last year. Net sales in the international tobacco unit increased 5 percent from the quarter last year. Excluding contract sales for the Russian Republic, for which there was a major shipment in the first quarter of 1991, net sales in the first quarter of 1992 would have shown a 10 percent increase, reflecting overall volume gains of 8 percent, principally in the Middle East and Asia. Business unit contribution for the international tobacco unit increased 16 percent from the year before. Net sales in the domestic tobacco unit for the first quarter were 9 percent higher than the year before and business unit contribution declined 3 percent. The domestic tobacco unit had a slight volume increase, driven by improving trends in full-price brands and increased sales in the savings segment. Domestic tobacco results also reflected more favorable pricing that was more than offset by higher marketing expenditures.
 Food
 RJR Nabisco's food businesses reported first quarter 1992 net sales of $1.54 billion, 2 percent higher than $1.51 billion reported in the 1991 first quarter. Business unit contribution increased 10 percent to $189 million from $171 million in the quarter last year. Food results in 1992 reflected improved margins in international businesses and increased North American earnings vs. the prior year, despite difficult economic conditions.
 RJR Nabisco Holdings Corp. is the indirect parent company of RJR Nabisco, Inc., an international consumer products company. RJR Nabisco's major business 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 3/31/92 3/31/91
 Net sales:
 Tobacco
 Domestic $ 1,431 $ 1,316
 International 677 645
 Total tobacco 2,108 1,961
 Foods group 1,535 1,509
 Consolidated $ 3,643 $ 3,470
 Business unit contribution:
 Tobacco
 Domestic $ 512 $ 528
 International 139 120
 Total tobacco 651 648
 Foods group 189 171
 Corporate (24) (19)
 Business unit contribution 816 800
 Amortization of trademarks
 and goodwill (152) (153)
 Operating income 664 647
 Cash interest expense (250) (307)
 Non-cash interest expense (126) (294)
 Amortization of debt
 issuance costs (5) (26)
 Other (expense) income, net (5) (10)
 Income before income taxes 278 10
 Provision for income taxes 134 5
 Income before extraordinary item 144 5
 Extraordinary item - loss on early
 extinguishments of debt, net of
 income taxes (159) ---
 Net income (loss) $ (15) $ 5
 Preferred stock dividends 8 52
 Net income (loss) applicable
 to common stock $ (23) $ (47)
 Net income (loss) per common and
 common equivalent share:
 Income (loss) before
 extraordinary item(a) $ 0.10 $ (0.08)
 Extraordinary item (0.12) ---
 Net income (loss) $ (0.02) $ (0.08)
 Avg. no. of common and common
 equiv. shares outstanding
 (in thousands) 1,340,458 623,641
 (a) If calculated on a fully diluted basis, including securities that produce an anti-dilutive result, income (loss) before extraordinary item per common and common equivalent share amounted to $0.11 and $0.02 for the three months ended March 31, 1992 and 1991, respectively.
 -0- 4/28/92
 /CONTACT: Jason Wright of RJR Nabisco, 212-258-5770/ CO: RJR Nabisco Holdings Corp. ST: New York IN: REA SU: ERN


BN-BR -- AT003 -- 3612 04/28/92 09:30 EDT
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