Reynolds American, 2Q profit falls on charges

RICHMOND, Virginia (AP) - cigarette maker that Reynolds American Inc. said Friday its second-quarter profit fell almost 11 percent, mainly on charges related to a legal case.Excluding these charges, the nation more second tobacco company said its earnings increased by 2% as of higher prices and shift cigarette volume declining gains without tobacco smoke.The creator of the brand Camel, Pall Mall and natural American spirit cigarettes said that its net income fell from $ 304 million, or 52 cents per share, for the period ending June 30 of 341 million, or 58 cents per share, a year ago.Earnings reflect charges of 139 million, or 15 cents per share, related to a continuation of smoking cessation in Louisiana. They were also hit by a $ 3 million charge related to plant closures. Excluding these items, earnings were 67 cents per share. Analysts surveyed by FactSet should more adjusted earnings of 71 cents per share.Income not including increased less than excise taxes 1% 2.27 billion of $ 2.25 billion a year earlier, beating estimates of the analyst of 2.1 billion dollars for the company of Winston-Salem, NC.Its shares fell 56 cents, or 1.5%, to $37.95 Premarket trade.The company "delivered solid performance in the second quarter, the economic and competitive context difficult" with gains in its key cigarette and smokeless tobacco brands, CEO Daniel M. Delen said in a press release.Reynolds American said that he sells cigarettes to 4.4% less than quarter of last year. Which is comparable to the estimate of a decline of the industry total of 1.3%, which the company has benefited from a significant increase in stocks in large levels.The company sold 3 percent less of its Camel brand, but the volumes of Pall Mall has increased by 15%.Camel market share remained stable at 7.8% in the US market, while the market share of Pall Mall has increased from 1.5 percent to 8.5%.The company has promoted Pall Mall as a longer period and cigarettes more affordable than weather smokers of the weakness of the economy and high unemployment rate and said half of those who attempt the brand continue to use it.American Reynolds and other tobacco companies are also focusing on alternatives to cigarettes as tobacco snuff and chewing tobacco for future sales growth as these increases, smoking bans, the problems of health and social stigma are the tougher cigarette trade.The company sold most of its brands of smokeless tobacco, including grizzly bears and Kodiak 3.6% and its share of the US market segment has increased from 1.5 percent to 31.3%.It reduced also its all year projected revenue between $2.62 and $2.70 per share, excluding costs for Legal Affairs, closing plants and of the articles of the tax. Analysts expected earnings of $2.67 per share for the year.Reynolds American more large rival Altria Group Inc., parent of manufacturer of Marlboro Philip Morris USA, said Wednesday that while cigarette sales declined slightly, it was an increase in the price. Top-selling Marlboro brand of 0.2 point market share lost Altria find themselves with 42.6% of the U.S. market, but it sold about 1 percent more than the Felberbaum brand.___Michael can be reached at http://www.twitter.com/MLFelberbaum.