Cigarette maker Reynolds American 1Q profit rises on higher prices, productivity gains

Cigarette maker Reynolds American 1Q profit rises

WINSTON-SALEM, N.C. — Cigarette maker Reynolds American says higher prices and productivity gains helped its first-quarter profit surge.

The improvement also comes because the same quarter last year was hurt by hefty trademark impairment charges.

The maker of Camel, Pall Mall and Natural American Spirit brand cigarettes says its profit grew to $82 million, or 28 cents per share. That’s up from $8 million, or 3 cents per share, a year ago.

Reynolds American says adjusted earnings per share were $1.11. Analysts expected $1.07.

The nation’s second-biggest tobacco company says net revenue rose 3.4 percent to $1.99 billion from $1.92 billion a year ago. The number of cigarettes sold fell 2.5 percent to 18.2 billion.