Alliance One International said it expects substantial reduction in uncommitted inventory and increased shipping volumes through 31 March on “solid” global demand for product

"Global supply has shifted to undersupply in flavour quality flue-cured and burley leaf varieties and is moving towards equilibrium in other styles based on solid global demand and reduced crop sizes in a number of important regions. As a result, our global inventories decreased USD 52.1 million (EUR 40.7 million) versus last year to USD 1.01 billion and our uncommitted inventory is inside of the higher end of our target range and is expected to decrease significantly by fiscal year end”, said Chief Executive Officer Mark Kehaya. “Fiscal year 2013 is on track to meet our expectations”.
Second-quarter income before tax and items roughly doubled to USD 21.2 million on sales that rose USD 61.9 million to USD 576.4 million, the company reported on 6 Nov. Net income was USD 18.4 million versus a net loss of USD 3.7 million in the comparable quarter of the prior fiscal year. Alliance One’s fiscal year ends 31 March, 2013. (ci)