RJR Nabisco Inc., continuing to reap the benefits of its financial restructuring, said Wednesday that it earned $79 million in the second quarter.
The food and tobacco conglomerate, which returned to profitability and public ownership this year after its 1989 leveraged buyout, said its earnings translated to 3 cents per share after accounting for preferred stock dividends.
The results contrasted with a loss of $108 million, or 35 cents per share, in the same quarter of 1990 and followed earnings of $5 million in the first quarter, the first time RJR Nabisco reported a quarterly profit since the $24.53-billion leveraged buyout in 1989.
Second-quarter revenue rose to $3.78 billion from $3.46 billion.
The company’s earnings before interest, taxes, depreciation and amortization, a key figure for a company with a heavy debt load, was $1.06 billion, up from $1.04 billion a year earlier.
RJR Nabisco Chairman Louis V. Gerstner said the company’s financial restructuring is bearing fruit. The conglomerate underwent a $7.6-billion recapitalization last year and sold common stock and new bonds earlier this year to retire expensive junk bond debt.
RJR Nabisco said its food business had operating income of $226 million, up from $199 million a year earlier. Sales rose to $1.57 billion from $1.44 billion.
The company’s food brands include Oreo and Teddy Graham cookies, Planter’s nuts, LifeSavers candy and Milk-Bone dog biscuits.
For the first six months, RJR Nabisco earned $84 million, contrasted with a loss of $330 million in the first half of 1990.