Reynolds American Profit Boosted By Gain On Sale Of American Spirit's Non-U.S. Business

Reynolds American Inc. said Tuesday it had net income of $3.565 billion, or $2.49 a share, in the first quarter, up from $389 million, or $36 a share, in the year-earlier period. Income was boosted by a gain on the sale of Natural American Spirit's business outside the U.S., offset by certain charges. Adjusted per-share earnings came to 50 cents, matching the FactSet consensus. Sales climbed to $2.917 billion from $2.057 billion, slightly below the FactSet consensus of $2.936 billion. The company said the integration of Newport manufacturing is on track for early completion by mid-2016, and that Chief Executive Susan Cameron will remain with the company to complete the integration of Lorillard and plan for her succession. "All of our operating companies demonstrated excellent performance, benefiting from increased volumes and higher pricing on both cigarettes and moist snuff," she said in a statement. The company is still expecting 2016 adjusted EPS to range from $2.25 to $2.35, compared with the FactSet consensus of $2.35. Shares were not yet active in premarket trade, but are up 4.9% in the year so far, while the S&P 500 has gained about 2%.