Tobacco growers looking for higher prices in 2012 face a world market still characterised by oversupply, according to Universal Corporation Chairman and Chief Executive George Freeman.

“Although it is too early to report specifically about the coming crop season, we continue to expect this year's oversupply situation to influence pricing and margins into the next fiscal year,” Freeman said in an earnings statement released 7 Feb. “We do anticipate that crop sizes will come down in many of our growing regions during the next year, which could mitigate those pressures, and markets for some grades may be tightening,” he said. Universal’s next fiscal year begins 1 April.
Operating profit rose USD 5.5 million (EUR 4.2 million) to USD 93.1 million in the three months ending 31 Dec, Universal said. Revenue declined USD 15.8 million to USD 672.4 million. (ci)