R.J. Reynolds’ Profit Falls 67% as Sales Drop

R.J. Reynolds Tobacco Holdings Inc. said second-quarter earnings tumbled 67% as sales declined and the company spent more to try to keep smokers from switching to lower-price brands.

Net income dropped to $70 million, or 83 cents a share, the Winston-Salem, N.C.-based company said. The profit, which was 1 cent short of analysts’ per-share estimates, was hurt by $34 million in costs to write down equipment and end an auto racing sponsorship. Sales fell 16% to $1.43 billion, a fourth straight decline.

Shares of R.J. Reynolds fell 91 cents to $35.54 on the New York Stock Exchange.

From Bloomberg News