“Completing this complex integration six months ahead of schedule is a major achievement, and positions the company well to capture the savings associated with RJ Reynolds’more efficient manufacturing process,” Cameron said. “We continue to be extremely pleased with Newport’s performance – the brand gained one - half point of market share during the quarter.”
Results for the business quarter ended 30 June continue to reflect the Lorillard acquisition completed last year. Sales rose by one third to USD 3.2 billion (EUR 2.9 billion) but reported operating profit fell by two thirds to USD 1.4 billion. Adjusted for the purchase impact, operating profit rose 45 per cent, RAI said.
Higher pricing boosted operating profit 7.4 per cent at the American Snuff subsidiary and Santa Fe operating income gained 7.1 per cent, due to higher pricing and increased volume for its Natural American Spirit cigarette brand.
Volume in the US cigarette industry fell 3.9 per cent in the second quarter, influenced by changes to wholesale inventory levels, RAI said. Adjusted for inventory movements, the decline was 1.7 per cent.