Reynolds American (RAI) profit this year will be higher than initially forecast following acquisition of Lorillard and its flagship Newport menthol brand, the company said.

Cigarette shipment volume at RJ Reynolds Tobacco, primarily Camel, Pall Mall and Newport, rose 4.4 per cent in the second quarter to 16.3 billion sticks. RAI’s Santa Fe Natural Tobacco subsidiary, the maker of Natural American Spirit, continued its rocket growth. Volume increased 25.1 per cent in the three months to 30 June, pushing Natural American Spirit shipments to 1.3 billion sticks.
“With the transactions completed and a successful first half behind us, we are now in a position to revise our adjusted earnings growth for the full year to a range of 11 percent to 17 percent over 2014’s adjusted earnings,” said RAI Chief Executive Officer Susan Cameron. “Our increased guidance estimate for 2015 underscores both the strategic rationale and substantial financial benefit of adding Newport to our companies’ portfolio of growing brands.”
Second-quarter sales, including Lorillard from 12 June to 30 June, rose 11.1 per cent to USD 2.4 billion (EUR 2.2 billion). Operating income, including earnings from divesting Lorillard infrastructure and RAI’s Kool, Salem and Winston brands to Imperial Tobacco, rose more than fourfold to USD 4.4 billion.