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Reynolds American 1Q profit falls more than 28 pct

April 23, 2014

RICHMOND, Virginia (AP) — Reynolds American Inc. says its first-quarter profit fell more than 28 percent as the company experienced lower cigarette sales and higher spending on its electronic cigarettes and legal costs.

The nation’s second-biggest tobacco company said Wednesday it earned $363 million, or 67 cents per share, for the quarter ended March. 31. That’s down from $508 million, or 92 cents per share, a year earlier.

Adjusted earnings were 72 cents per share, missing Wall Street estimates by 2 cents.

The Winston-Salem, North Carolina, maker of Camel and Pall Mall cigarettes said revenue excluding excise taxes increased nearly 3 percent to $1.93 billion. Analysts polled by FactSet expected $1.91 billion.

Its R.J. Reynolds Tobacco subsidiary sold about 4 percent fewer cigarettes. But the Camel and Pall Mall brands both gained market share.

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