RJR Nabisco Profit Up Only Slightly as Cigarette Sales Sag

RJR Nabisco Holdings Corp. said Monday that its third-quarter earnings rose only slightly as slumping U.S. cigarette sales offset higher international sales.

The New York-based maker of Camel and Winston cigarettes, Oreo cookies and Ritz crackers said profit from operations rose to $233 million, or 68 cents a share, from $232 million, or 61 cents, a year earlier.

The company had been expected to earn 69 cents a share, based on the average estimate of analysts surveyed by First Call.

Analysts said unit sales at the nation’s second-largest cigarette maker fell 3.3% on increased competition among premium U.S. brands. Industrywide, premium unit sales rose 5%, yet RJR continues to struggle to hold on to its share of the premium cigarette market.

RJR stock rose 75 cents to close at $27.25 in trading of 3.02 million shares, compared with its three-month daily average of 1.8 million.

A charge in the recent quarter of $8 million, or 2 cents a share, for restructuring at its Nabisco Holdings Corp. food unit, resulted in net income of $225 million, or 66 cents. A year earlier, a charge of $16 million, or 5 cents, for the redemption of debt, resulted in net income of $216 million, or 56 cents.

Operating profit rose 2.5% to $375 million in its U.S. tobacco business and 10% to $217 million at its international unit. International cigarette sales accounted for about 44% of total $2.11 billion tobacco revenue.

RJR Nabisco said it expects stronger results in the fourth quarter.

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USAir Group said profit rose 57% in the third quarter, reflecting strong traffic on international routes and positive economic conditions.

The airline said it earned $67.7 million, or 69 cents a share, in the three months ended Sept. 30, compared with $43.1 million, or 35 cents, a year ago. The results were above expectations.

Arlington, Va.-based company said profit would have been higher--$108.5 million--without the $41.1 million it set aside under an employee profit-sharing agreement.

reflected in the results was a $9.8-million payment to settle a lawsuit by travel agents against several airlines that capped commissions.

At a Glance:

Ryder System posted a 26% increase in third-quarter profit but said its automobile-hauling business continued to be a drag on earnings. The Miami-based company also said it has offered early retirement to 1,000 of its nearly 44,000 employees in a continuing effort to pare expenses. Earnings in the third quarter were $26.3 million, or 32 cents a share, compared with $20.9 million, or 26 cents, last year. Revenue was up 11% to $1.41 billion from $1.26 billion. The results were below Wall Street expectations.

Hasbro’s earnings gained nearly 11% in the third quarter to $70.5 million, or 81 cents a share, in the quarter ended Sept. 29, from $63.6 million, or 72 cents, in the comparable 1995 period.

Imperial Bancorp, parent company of Los Angeles-based Imperial Bank, said net income rose 68% to $8.7 million, or 36 cents a share, in the third quarter ended Sept. 30, from $5.2 million, or 22 cents, in the year-ago quarter.

CalFed Bancorp’s third-quarter earnings rose 6% to $33.8 million, or 58 cents a share, from $31.9 million, or 51 cents. CalFed took a $58.1-million charge for its payment to the Savings Assn. Insurance Fund.

Goodyear Tire & Rubber’s third-quarter profit rose 8.6%, to $171 million, or $1.10 a share, up from $157.5 million, or $1.03, in the year-earlier period.

Union Carbide said its profit dropped 42% in the third quarter to $161 million, or $1.19 a share, for the three months ended Sept. 30, compared with $277 million, or $1.96, in the same period a year ago.

Tupperware reported third-quarter net income of $18.1 million, or 29 cents a share, compared with $15.7 million, or 25 cents, for the year-ago quarter.

Enova reported third-quarter earnings of $62.7 million, or 54 cents a share, a 4.7% increase, compared with $59.9 million, or 51 cents, last year.

Whirlpool reported a 67% drop in third-quarter profit to $21 million, or 28 cents a share, compared with $64 million, or 85 cents, in the same period a year ago.

Genentech said third-quarter earnings rose 27% to $50.9 million, or 41 cents a share, from $40.2 million, or 33 cents, in the year-earlier period.

Lexmark International said third-quarter profit rose 87% to $30.2 million, or 40 cents a share, compared with $16.1 million, or 21 cents, in the year-ago period.

Xylan reported third-quarter net income of $4.6 million, or 10 cents a share, contrasted with a net loss of $3.2 million, or 15 cents, in the same 1995 quarter.

Odwalla reported third-quarter net income of $301,000, or 6 cents a share, compared with $311,000, or 6 cents, last year.