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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|Date:||Apr 28, 1992|
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