News Summary: Reynolds American 2Q profit up 4 pct

News Summary: Tobacco firm Reynolds American 2Q profit up 4 pct on higher prices, lower costs

Associated Press

THE RESULTS: The owner of the nation's second-biggest tobacco company Reynolds American Inc.'s second-quarter profit rose 4 percent to $461 million as higher prices and lower expenses from a longstanding legal settlement offset a decline in cigarette sales. The maker of Camel, Pall Mall and Natural American Spirit cigarettes said revenue excluding excise taxes was essentially flat at $2.18 billion.

CIGARETTE VOLUMES: The number of cigarettes sold by its R.J. Reynolds Tobacco subsidiary fell 6 percent. Volumes for Camel and Pall Mall both fell less than one percent. Shipments of its other brands, which include Winston, Kool, Doral and Salem, fell 15 percent. Camel and Pall Mall both gained market share.

SMOKELESS GAINS: Volume for its smokeless tobacco brands that include Grizzly and Kodiak rose more than 9 percent compared with a year ago. The brands had a 33 percent share of the U.S. retail market, which is tiny compared with cigarettes.

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