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RJR NABISCO REPORTS FIRST QUARTER RESULTS

 First Quarter 1993 Highlights
 Excluding Extraordinary Charges
 Related to Debt Retirements
 -- Fully diluted earnings per share up 46 percent to $.16
 -- Primary earnings per share up 50 percent to $.15
 -- Net income up 46 percent to $210 million
 -- Operating income up 3 percent to $683 million
 NEW YORK, April 29 /PRNewswire/ -- RJR Nabisco Holdings Corp. (NYSE: RN) today announced first quarter 1993 net income of $163 million, or $.12 per common share, compared with a net loss of $15 million, or $.02 per common share, in the first quarter of 1992.
 After excluding a first-quarter 1993 after-tax extraordinary charge of $47 million related to the repurchase and retirement of high-cost debt and a similar after-tax extraordinary charge of $159 million in the year-ago quarter, the company would have reported net income of $210 million ($.15 per common share) in the first quarter of 1993, up 46 percent from $144 million ($.10 per common share) last year. Excluding the extraordinary charges, net income per share on a fully diluted basis in the first quarter was $.16, up 46 percent from $.11 a year ago.
 "Our first quarter results reflect the improving operating performance of our food and tobacco businesses as well as the lower interest expense achieved through our ongoing refinancing activity," said Karl M. von der Heyden, RJR Nabisco co-chairman and chief executive officer. "Our food business benefits from strong international growth and an excellent performance in North America, where new products are continuing to generate consumer excitement for our brands. On the tobacco side of the business, international profits continue to grow strongly, while our domestic business has regained market share.
 "Although we were especially pleased to see the increase in domestic tobacco volume," von der Heyden continued, "we do not expect it to translate to higher earnings for that business this year. In fact, given the unsettled domestic tobacco marketing environment that has developed recently, we expect a decline in domestic tobacco profits for the year. However, the gains already achieved and investments made to protect our market position have made us a stronger competitor."
 Operating income in the first quarter of 1993 was $683 million, up 3 percent from $664 million last year. Net sales for the quarter were $3.74 billion, up 3 percent from $3.64 billion in the quarter last year.
 As previously announced, RJR Nabisco sold its ready-to-eat cold cereal business at the end of 1992. The company said that after excluding the results for the cereal business in 1992, net sales and operating income rose 4 percent in the first quarter of 1993.
 TOBACCO
 RJR Nabisco's worldwide tobacco business reported net sales of $2.10 billion, about even with the first quarter of 1992, with worldwide volume up 11 percent. Business unit contribution (operating income before amortization of trademarks and goodwill) in the first quarter of $659 million was 1 percent above $651 million a year ago.
 In international tobacco, first quarter net sales rose 3 percent and business unit contribution increased 14 percent over the year-ago first quarter. Volume in the quarter increased 21 percent. International tobacco results for the quarter reflect strong volume gains in Eastern Europe (where the company made several acquisitions) and Western Europe.
 In domestic tobacco, net sales and business unit contribution in the first quarter of 1993 declined 2 percent from last year, as the impact of higher unit volume (up 9 percent) was offset by an unfavorable mix of full-price and savings brands business.
 As reported earlier, the company's major competitor in the domestic tobacco business recently announced that it would increase various promotional activities in full-price and savings brand categories. RJR Nabisco said that in light of that announcement, it would make the necessary marketing and promotional investments required to maintain its competitive position in all price categories. The company said this additional spending would have a negative effect on the full-year 1993 results of its domestic tobacco business, although it is still too early to determine the degree of impact.
 FOOD
 RJR Nabisco's food businesses reported first quarter 1993 net sales of $1.63 billion, 6 percent higher than $1.54 billion reported in the first quarter of 1992. Business unit contribution of $203 million was 7 percent higher than $189 million in the year-ago quarter. When food results are adjusted to exclude results from the ready-to-eat cereal business, which was sold at the end of 1992, food sales increased 10 percent and business unit contribution increased 12 percent. The improved performance of the continuing food businesses reflects strong sales and earnings growth in international markets, recent acquisitions and solid volume and productivity gains in North America.
 RJR Nabisco Holdings Corp. is the 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., the Nabisco Foods Group and Nabisco International, Inc.
 RJR NABISCO HOLDINGS CORP.
 CONSOLIDATED CONDENSED STATEMENTS OF INCOME
 (Dollars in millions except per share amounts)
 3 mos. ended March 31 1993 1992
 Net sales:
 Tobacco-domestic $ 1,405 $ 1,431
 Tobacco-international 699 677
 Total tobacco 2,104 2,108
 Total food 1,632 1,535
 Consolidated $ 3,736 $ 3,643
 Business unit contribution:
 Tobacco-domestic $ 500 $ 512
 Tobacco-international 159 139
 Total tobacco 659 651
 Total food 203 189
 Corporate (24) (24)
 Business unit contribution 838 816
 Amortization of trademarks and goodwill (155) (152)
 Operating income 683 664
 Cash interest expense (224) (250)
 Non-cash interest expense (91) (126)
 Amortization of debt issuance costs (5) (5)
 Other (expense) income, net 7 (5)
 Income before income taxes 370 278
 Provision for income taxes 160 134
 Income before extraordinary item 210 144
 Extraordinary item - loss on early
 extinguishments of debt, net of
 income taxes (47) (159)
 Net income (loss) $ 163 $ (15)
 Preferred stock dividends 6 8
 Net income (loss) applicable
 to common stock $ 157 $ (23)
 Net income (loss) per common and common equivalent share:
 Income before extraordinary item(a) $ 0.15 $ 0.10
 Extraordinary item (0.03) (0.12)
 Net income (loss) $ 0.12 $ (0.02)
 Avg. no. of common and common equivalent
 shares outstanding (in thousands) 1,358,223 1,340,458
 (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 $.16 and $.11 for the three months ended March 31, 1993 and 1992, respectively.
 -0- 4/29/93
 /CONTACT: Jason Wright of RJR Nabisco, 212-258-5770/


CO: RJR Nabisco Holdings Corp. ST: New York IN: REA SU: ERN

BN-BR -- AT005 -- 2543 04/29/93 10:21 EDT
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Date:Apr 29, 1993
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