Universal Corporation third-quarter flue-cured and burley volumes increased and average prices were higher, the company said in a statement that included a mixed early assessment for 2014 crops.

“We had a strong third quarter, with shipment volumes exceeding those of last year’s third quarter and operating profit improvements in each segment. These improvements are helping to offset a portion of the large declines we reported in the first half of the (fiscal) year,” said Chief Executive Officer George Freeman.
“The current outlook for the 2014 crops, which will impact our fiscal year 2015 results, indicates increased production in some origins. At the same time, there are possible reductions in cigarette manufacturers’ needs due to lower cigarette sales in Europe and the United States,” he said. Uncommitted inventories remain low, he said.
Flue-cured and burley operations, the bulk of the USD 767.8 million (EUR 566.7 million) in revenue reported for the three months to 31 Dec, rose 13 per cent to USD 721.5 million. Operating income for the segment rose USD 8.7 million to USD 73.3 million. Within the segment, North American revenue rose 23 per cent to USD 105.4 million.