Camel maker Reynolds' profit rises as higher cigarette prices offset declines in volume

MarketsAssociated Press

Higher cigarette prices helped Camel cigarette maker Reynolds American Inc.'s net income rise 2.2 percent in its third quarter.

The higher prices helped offset continued decline in cigarettes sold.

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The company's net income rose to $467 million, or 88 cents per share, for the quarter which ended Sept. 30, up from $457 million, or 84 cents per share, in the same quarter last year.

Reynolds' adjusted earnings of 95 cents per share beat expectations for 91 cents per share, according to Zacks.

Total revenue rose 4.9 percent to $2.24 billion from $2.14 billion. Analysts expected $2.18 billion, according to Zacks.

The company reiterated that it expects full-year earnings between $3.35 and $3.45 per share.

Reynolds, which is buying fellow cigarette maker Lorillard Inc., says it still expects that deal to close by the middle of next year. It is currently undergoing antitrust review.