RJR Nabisco Inc.: The food and tobacco...

RJR Nabisco Inc.: The food and tobacco conglomerate said it earned $123 million in the third quarter as it continued to reap the benefits of a massive debt reduction.

RJR Nabisco said it earned $123 million, or 7 cents per share, contrasted with a loss of $86 million, or 16 cents per share, in the same period of 1990.

Revenue rose 7% to $3.76 billion from $3.53 billion.

The turnaround in RJR Nabisco’s performance reflects the company’s recapitalization and retirement of expensive junk bonds in the past year.

It went heavily into debt to finance its $24.53-billion leveraged buyout in 1989.

Operating income rose 8% during the third quarter to $762 million from $706 million.

RJR Nabisco said its tobacco-business sales rose 3%, while sales at its food businesses were up 13%.