Reynolds American Inc. announced fourth-quarter 2014 adjusted EPS of $0.87, up 13 percent from the prior-year quarter.
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Adjusted EPS excludes charges for pension and postretirement mark-to-market adjustments, transaction-related and financing costs, and Engle progeny lawsuits.Reported fourth-quarter EPS was $0.28, down 48.1 percent.
For the full year, adjusted EPS was $3.42, up 7.2 percent from the prior-year period, while reported EPS was $2.75, down 12.4 percent.
Full-year adjusted results exclude the above-referenced items, as well as the one-time benefit for the NPM Partial Settlement, a gain on discontinued operations and implementation costs. RAI issued 2015 adjusted EPS guidance in the range of $3.65 to $3.80, up 6.7 percent to 11.1 percent from 2014's adjusted EPS of $3.42. Guidance excludes any impact from the Proposed Transactions.
RJR Tobacco's fourth-quarter adjusted operating income increased 13.9 percent from the prior-year quarter, to $676 million, as higher pricing and the completion of the federal tobacco-quota buyout more than offset a decline in cigarette volume.
Adjusted results exclude charges for pension and postretirement mark-to-market adjustments, Engle progeny lawsuits and implementation costs. Reported fourth-quarter operating income was $234 million. For the full year, the company's adjusted operating income was up 8.3 percent from the prioryear period, at $2.7 billion. Adjusted results exclude the above-referenced items, as well as the one-time benefit from the NPM Partial Settlement.
Reported full-year operating income was $2.2 billion. American Snuff's fourth-quarter adjusted operating income decreased 3.2 percent from the prior-year quarter, to $113 million, due to higher promotional spending and a modest volume decline in a highly competitive market. Adjusted results exclude pension and postretirement mark-to-market adjustments.
Reported fourth-quarter operating income was $109 million.5 For the full year, American Snuff's adjusted operating income was $442 million, up 3.9 percent from the prior-year period. Reported full-year operating income was $438 million, and also excludes the abovereferenced item.
Increased volume and pricing drove Santa Fe's fourth-quarter operating income higher by 24.2 percent from the prior-year quarter, to $90 million. For the full year, the company's operating income increased 20.5 percent, to $337 million.
Santa Fe's fourth-quarter operating margin increased 2.6 percentage points from the prioryear quarter, to 51.7 percent, bringing the full year to 51.2 percent. ■