Reynolds American profit rises 6.7 pct on higher pricing

29/07/2014 - 12:37

(Reuters) - Tobacco major Reynolds American Inc's quarterly profit rose 6.7 percent as price increases helped to make up for a drop in cigarette volumes.

The company's net income rose to $492 million, or 92 cents per share, in the second quarter ended June 30, from $461 million, or 84 cents per share, a year earlier.

Net sales fell 0.7 percent to $2.16 billion. [ID:nPn8yqx5t]

Reynolds American, which has agreed to buy smaller rival Lorillard Inc in a $25 billion deal, also raised the bottom end of its full-year adjusted earnings forecast range to $3.35-$3.45 per share from $3.30-$3.45.

(Reporting by Shailaja Sharma in Bangalore; Editing by Saumyadeb Chakrabarty)