Universal sees opportunities for growth

Universal Corp’s net income for the third quarter to the end of December was $38.6 million or $1.36 per diluted share, up from $35.5 million or $1.25 per diluted share during the three months to the end of December 2012.

Segment operating income during the third quarter of fiscal 2014, at $74.6 million, was up by 18 per cent on that of the previous third quarter, on combined earnings improvement in every segment.

At the same time, consolidated revenues increased by 13 per cent to $767.8 million on higher overall volumes, mainly due to the current season’s larger African crops, partly offset by lower volumes in Brazil.

Meanwhile, net income for the nine months ended December 31 was $122.3 million or $4.31 per diluted share, compared with $106.6 million or $3.75 per diluted share for the same period of the previous fiscal year.

Segment operating income was $130.3 million for the nine-month period to the end of December, a decrease of $55.6 million from that of the nine months to the end of December 2012.

Revenues increased by two per cent to $1.9 billion for the first nine months of fiscal year 2014, on slightly lower volumes at higher prices.

George C. Freeman, III, chairman, president, and CEO said that one of Universal’s strengths was the ability to manage its business well in uncertain global markets.

“While it is still very preliminary, the current outlook for the 2014 crops, which will impact our fiscal year 2015 results, indicates increased production in some origins,” he said.

“At the same time, there are possible reductions in cigarette manufacturers’ needs due to lower cigarette sales in Europe and the United States. However, our uncommitted inventories remain at relatively low levels.

“Our focus remains on efficiently managing our business and positioning ourselves to meet the needs of our customers and suppliers while delivering consistent results to our shareholders.

“We believe that there are opportunities to grow our business by investing in projects that bring additional value and services to our customers.

“We continue to make good progress on the programs announced in October to expand our leaf production and processing capacity in Mozambique and to enhance production efficiency in several other origins…”

Dioxins undetectable in cigarette MSS

New research from Essentra Scientific Services (ESS) has found that dioxins are not present at detectable levels in cigarette mainstream smoke.

The new research, carried out by Dr. William Guthery, analytical chemist at ESS, drew on an innovative gas chromatography-tandem mass spectrometry analysis to demonstrate that dioxins, which are cited by the US Food and Drug Administration as harmful and potentially harmful constituents, were not present at detectable levels in the American-blend and Virginia cigarettes tested.

ESS, which is part of the Filter Products division of Essentra plc, has now published its latest findings into the levels of chlorinated dioxins and furans found in mainstream cigarette smoke.

The full paper is available as a free download from: www.essentrafilters.com/Dioxins.

No fire in smoking impeachment plan

A proposal that the Philippines’ President, Benigno S. Aquino III, should be impeached because of his tobacco smoking seems unlikely be realized, according to a story in the Manila Bulletin.

While the president had not quit smoking, he had followed the smoking ban in government offices and other public areas, presidential communications secretary, Herminio Coloma Jr, was quoted as saying.

Coloma made his remarks after a Civil Service Commission (CSC) official had warned that Aquino’s smoking in government premises could be grounds for impeachment.

CSC assistant commissioner, Ariel Ronquillo, reportedly claimed that the president had violated the smoking prohibition in government buildings.

But Coloma countered that the president had always been supportive of the MMDA’s (Metropolitan Manila Development Authority) efforts to reduce the hazards of smoking. “The president is following all of the laws of the land regarding this matter,” he said.

“The president has not violated any of these rules.”

Aquino has repeatedly rejected calls by concerned groups to lead by example and quit his smoking habit, saying that for him smoking is a way to relieve stress.

Ground prepared for standardized packs

The Northern Ireland Assembly voted on Monday to accept the introduction of standardized packaging for cigarettes, according to a BBC Online story.

Assembly members voted on a legislative consent motion on the Children and Families Bill, which will allow the UK government in Westminster to legislate to impose standardized packaging in Northern   Ireland.

Health Minister Edwin Poots said the vote provided for Northern Ireland to participate in what might happen in the rest of the UK.

In addressing the argument that standardized packaging would make no difference to the number of people starting to smoke, Poots said there was evidence suggesting that “to do nothing was not satisfactory”.