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UST POSTS 17 PERCENT INCREASE IN SECOND QUARTER EARNINGS PER SHARE

 GREENWICH, Conn., July 19 /PRNewswire/ -- UST (NYSE: UST) today announced that primary earnings per share increased 17 percent for the second quarter ended June 30 to 41 cents per share, compared with 35 cents per share for the similar 1992 period. Primary earnings per share for the first six months of 1993 rose 21 percent to 80 cents per share, versus 66 cents per share for the corresponding 1992 period.
 Second quarter net earnings were $89.8 million, a 15 percent gain over $78.1 million for the similar 1992 period. For the first six months of 1993, net earnings rose 17 percent to $173.5 million, compared with $147.9 million for the corresponding 1992 period.
 Net sales for the second quarter increased 7 percent to $280.3 million, versus $263.1 million for the corresponding period in 1992. For the first six months of 1993, net sales rose 10 percent to $546.5 million, compared with $498.7 million for the corresponding period in 1992.
 The Tobacco and Wine segments posted sales gains while sales for the other segment were lower for both the second quarter and six-month period. Moist smokeless tobacco sales were primarily responsible for the increase in the tobacco segment. Other segment sales were lower in both periods due to the sale of the distribution rights for Zig-Zag cigarette papers and related products.
 Domestic unit volume for moist smokeless tobacco products in the second quarter increased to 160.4 million cans, up 5.6 percent compared with the similar period in 1992. For the first six months of 1993, unit volume rose 3.4 percent to 301.6 million cans. Unit volume results for both periods were favorably affected by the national roll-out of two new Skoal Long Cut flavors, cherry and spearmint.
 Included in the six-month results was the company's sale of its distribution rights for Zig-Zag cigarette papers and related products, which was completed on March 31, 1993. This transaction resulted in an after-tax gain of $22 million, amounting to 10 cents per share.
 This gain was offset by the cumulative effect of accounting changes in the first quarter of 1993 as a result of mandatory adoption of Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," and SFAS No. 109, "Accounting for Income Taxes." As a result of adopting SFAS No. 106 the company recorded a one-time charge to net earnings of $32.7 million. The adoption of SFAS No. 109 resulted in an increase in net earnings of $12.8 million. The cumulative effect of accounting changes reduced primary earnings per share by 9 cents for the six month period.
 UST, through its subsidiaries, is a leading producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Skoal Long Cut, and Skoal Bandits. Other consumer products marketed by UST subsidiaries include premium wines sold nationally through the Chateau Ste. Michelle, Columbia Crest, Conn Creek and Villa Mt. Eden wineries.
 Copenhagen, Skoal, Skoal Long Cut, Skoal Bandits, Chateau Ste. Michelle, Columbia Crest, Conn Creek, and Villa Mt. Eden are registered trademarks of UST subsidiaries.
 UST
 Consolidated Sales and Earnings
 (In thousands, except per share data, unaudited)
 Second quarter 1993 1992 Pct. Change
 Net sales $280,251 $263,128 + 7
 Costs and expenses:
 Cost of products sold 59,955 64,861 - 8
 Selling, advertising & administrative 75,388 72,729 + 4
 Total costs and expenses 135,343 137,590 - 2
 Operating income 144,908 125,538 +15
 Other income
 Interest income, net 519 471 +10
 Earnings before income taxes 145,427 126,009 +15
 Income taxes 55,591 47,924 +16
 Net earnings 89,836 78,085 +15
 Net earnings per share:
 Primary $.41 $.35 +17
 Fully diluted $.41 $.35 +17
 Cash dividends per common share $.24 $.20 +20
 Average number of common and
 common equivalent shares outstanding
 during the three-month period:
 Primary 216,691 222,556 --
 Fully diluted 216,833 222,556 --
 Six months ended June 30 1993 1992 Pct. change
 Net sales $546,484 $498,682 +10
 Costs and expenses:
 Cost of products sold 122,623 119,178 + 3
 Selling, advertising & administrative 149,010 141,909 + 5
 Total costs and expenses 271,633 261,087 + 4
 Operating income 274,851 237,595 +16
 Other income
 Interest income, net 674 930 -28
 Gain recorded on the disposal
 of product line (A) 35,029 -- --
 Earnings before income taxes
 and cumulative effect of
 accounting changes 310,554 238,525 +30
 Income taxes 117,163 90,582 +29
 Earnings before cumulative effect
 of accounting changes 193,391 147,943 +31
 Cumulative effect of accounting
 changes (B):
 Postretirement benefits other
 than pensions (net of income
 tax benefit of $18,115) (32,690) -- --
 Income taxes 12,844 -- --
 Net earnings $173,545 $147,943 +17
 Earnings per share:
 Primary earnings before cumulative
 effect of accounting changes $.89 $.66 +35
 Cumulative effect of accounting
 changes (B) (.09) -- --
 Net earnings per share:
 Primary .80 .66 +21
 Fully diluted .80 .66 +21
 Cash dividends per common share .48 .40 +20
 Average number of common and
 common equivalent shares outstanding
 during the three-month period:
 Primary 217,377 223,226 --
 Fully diluted 217,448 223,226 --
 (A) Gain recorded on the sale of a tobacco-related business resulting in an after-tax gain of $22 million or 10 cents per share.
 (B) Reflects the adoption of SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," and SFAS No. 109, "Accounting for Income Taxes."
 -0- 7/19/93
 /CONTACT: Alan Kaiser, 203-622-3549, or David Schutzman, 203-622-3479, both of UST Inc./
 (UST)


CO: UST Inc. ST: Connecticut IN: TOB SU: ERN

WB-OS -- NY026 -- 2980 07/19/93 10:45 EDT
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Date:Jul 19, 1993
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