P.M. BRIEFING : RJR Has Strong Quarter Results

RJR Nabisco Inc., focusing on operating income and cash flow since its record $24.9-billion leveraged buyout, today reported strong first-quarter results in both categories despite a net loss.

The food-and-tobacco giant, taken private last year by Kohlberg Kravis Roberts & Co. in a transaction that loaded the company with debt, said first-quarter operating income was up 43% to $754 million, from $526 million a year earlier.

The company, which reports its results because of publicly traded high-yield, high-risk junk bonds it issued in connection with the takeover, said it had a net loss of $222 million for the quarter, compared to a loss of $239 million a year earlier.

Revenues for the the period were $3.2 billion, up 8% from $2.95 billion a year earlier.