RICHMOND, Va., Aug. 3, 2017 /PRNewswire/ -- George C. Freeman, III, Chairman, President, and
Chief Executive Officer of Universal Corporation (NYSE:UVV),
reported net income of $3.6 million,
or $0.14 per diluted share, for the
first quarter of fiscal year 2018, which ended on June 30, 2017. Those results were up $9.1 million compared with a net loss of
$5.5 million, or $0.40 per diluted share, for the first quarter of
fiscal year 2017. Operating income of $6.6
million for the quarter ended June
30, 2017, improved $14.6
million compared to an $8.0
million operating loss for the quarter ended June 30, 2016. Similarly, segment operating
income was $6.1 million for the first
quarter of fiscal year 2018, up $14.3
million compared to the same period last year, mainly as a
result of earnings improvements in the Other Regions segment,
partially offset by earnings declines in the North America and Other Tobacco Operations
segments. Revenues of $284.6 million
for the quarter ended June 30, 2017,
decreased by $10.9 million, or 4%, on
lower total volumes and a less favorable product mix.
Mr. Freeman stated, "Benefits from net currency remeasurement
and exchange gains compared with losses in the prior year's first
fiscal quarter and earlier receipt of distributions from
unconsolidated subsidiaries positively impacted our results,
primarily in our Other Regions segment. In addition, crop levels in
Brazil have fully recovered from
last season's crop declines, increasing our volumes purchased and
processed there and improving factory unit costs. Results for our
North America segment declined for
the fiscal quarter when compared to last year's stronger carryover
shipments volumes.
"Crop purchases are essentially completed in Brazil and are progressing well in
Africa. Overall crop qualities are
good. We expect increased volumes in Brazil to continue to positively affect
earnings throughout this fiscal year. At the same time, greater
reductions than expected in burley crop sizes in Africa and continued challenging market
conditions in Tanzania will reduce
our volumes sold from that region. We are currently forecasting
worldwide burley tobacco production levels for fiscal year 2018 of
about 510 million kilos, a reduction of approximately 13% from
fiscal year 2017 levels. As a result, we believe that demand for
burley tobacco may slightly exceed supply.
"Although it's still early in the season, customer orders are
progressing as anticipated, and our uncommitted stock levels are
well within our target range at 17%. We remain actively engaged
with our customers developing additional opportunities to reduce
sourcing complexities, improve supply chain efficiency, and offer
expanded services to support current and next generation
products."
FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS:
OTHER REGIONS:
The Other Regions segment operating income of $4.1 million for the quarter ended June 30, 2017, was up $21.1 million compared with the prior year's
first fiscal quarter operating loss of $17.0
million on improved results in every region. The improvement
was heavily influenced by lower selling, general and administrative
costs, largely from net foreign currency remeasurement and exchange
gains in the first quarter of fiscal year 2018, compared with
losses incurred in the first quarter of fiscal year 2017, mainly in
Africa. Segment results also
benefited from the earlier receipt of distributions from
unconsolidated subsidiaries. In South
America, volumes were down slightly in the first quarter of
fiscal year 2018 given larger sales volumes of prior crops in
fiscal year 2017's first quarter. However, recovery of current crop
production levels in Brazil has
increased processing revenues and reduced factory unit costs
resulting from higher total volumes handled there. Despite weaker
volumes, results for Asia
benefited from a more favorable sales mix and lower currency
remeasurement losses in the
Philippines. Revenues for the Other Regions segment of
$184.4 million for the quarter ended
June 30, 2017, were up about 4%
compared to the same period last year, as slightly lower total
volumes for the segment and a less favorable product mix were more
than offset by higher processing revenues, higher overall green
leaf prices and the additional revenue from the timing of receipt
of distributions from unconsolidated subsidiaries.
NORTH AMERICA:
Operating income for the North
America segment for the quarter ended June 30, 2017, was $2.4
million, down $4.5 million
from the comparable prior year period, mainly on lower sales
volumes. The earnings decline reflected reduced volumes shipped in
the first quarter of fiscal year 2018, primarily due to larger
prior crop carryover sales in the first quarter of fiscal year
2017. In addition, some offshore current crop shipments have been
delayed into this year's second fiscal quarter. Selling, general,
and administrative costs for the North
America segment were flat compared to the prior year's first
fiscal quarter. Revenues for this segment similarly decreased by
$19.4 million to $53.3 million for the quarter ended June 30, 2017, compared to the same period in the
prior fiscal year, on the lower sales volumes and a less favorable
product mix.
OTHER TOBACCO OPERATIONS:
The Other Tobacco Operations segment operating loss of
$0.3 million for the first quarter of
fiscal year 2018 reflected a decline of about $2.3 million compared with operating income of
$2.0 million for this segment in the
same period last year. Results for the dark tobacco operations were
down for the quarter ended June 30,
2017, largely due to lower volumes and a less favorable
product mix in Indonesia. The
oriental joint venture reported slightly lower results for its
seasonally weak first fiscal quarter ended June 30, 2017, compared to the prior fiscal year
from a less favorable sales mix as well as negative currency
remeasurement variances. Operating results for the Special Services
group were flat compared with the prior year's first fiscal
quarter. Revenues for this segment in the quarter ended
June 30, 2017, increased by
$2.1 million to $46.9 million on higher domestic volumes in the
dark tobacco business, offset by lower volumes from the timing of
the shipment of oriental tobaccos into the United States. Selling, general, and
administrative costs for the segment were higher compared with the
prior year fiscal quarter, mainly from larger currency
remeasurement losses in Indonesia.
OTHER ITEMS:
Cost of goods sold in the quarter ended June 30, 2017, of $230.8
million was down by about 5% compared with the same period
last year, consistent with the similar percentage decrease in
revenues for the current period. Selling, general, and
administrative costs for the first quarter of fiscal year 2018
decreased by $12.9 million to
$47.3 million primarily driven by net
foreign currency remeasurement and exchange gains in the current
fiscal period, compared with losses incurred in the prior year
comparable period, mainly in Africa.
Income taxes for the quarter ended June
30, 2017, were favorably impacted by a lower effective tax
rate on dividend income from unconsolidated operations and by
excess tax deductions related to stock-based compensation awards
that vested during the quarter. Both of these items were accounted
for as discrete tax benefits during the quarter, resulting in a net
tax benefit on pretax earnings for the period. Without the benefit
from the discrete items, income taxes for the quarter would have
been expense of approximately $1
million, or a consolidated effective tax rate of about 34%.
The effective tax rate on the pretax loss for the first quarter of
fiscal year 2017 was approximately 37%.
Additional information
Amounts included in the previous discussion are attributable to
Universal Corporation and exclude earnings related to
non-controlling interests in subsidiaries. In addition, the total
for segment operating income (loss) referred to in this discussion
is a non-GAAP measure. This measure is not a financial measure
calculated in accordance with GAAP and should not be considered as
a substitute for net income (loss), operating income (loss), cash
from operating activities or any other operating performance
measure calculated in accordance with GAAP, and it may not be
comparable to similarly titled measures reported by other
companies. A reconciliation of the total for segment operating
income (loss) to consolidated operating income (loss) is provided
in Note 3. Segment Information, included in this earnings release.
The Company evaluates its segment performance excluding certain
significant charges or credits. The Company believes this measure,
which excludes items that it believes are not indicative of its
core operating results, provides investors with important
information that is useful in understanding its business results
and trends.
This information includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. The Company cautions readers that any statements contained
herein regarding earnings and expectations for its performance are
forward-looking statements based upon management's current
knowledge and assumptions about future events, including
anticipated levels of demand for and supply of its products and
services; costs incurred in providing these products and services;
timing of shipments to customers; changes in market structure;
government regulation, including the impact of regulations on
tobacco products; product taxation; industry consolidation and
evolution; changes in global supply and demand positions for
tobacco products; and general economic, political, market, and
weather conditions. Actual results, therefore, could vary from
those expected. A further list and description of these risks,
uncertainties, and other factors can be found in the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 2017, and in other documents the
Company files with the Securities and Exchange Commission. This
information should be read in conjunction with the Annual Report on
Form 10-K for the fiscal year ended March 31, 2017.
At 5:00 p.m. (Eastern Time) on
August 3, 2017, the Company will host
a conference call to discuss these results. Those wishing to listen
to the call may do so by visiting www.universalcorp.com at that
time. A replay of the webcast will be available at that site
through November 3, 2017. A taped
replay of the call will be available through August 16, 2017, by dialing (855) 859-2056. The
confirmation number to access the replay is 59259116.
Headquartered in Richmond,
Virginia, Universal Corporation is the leading global leaf
tobacco supplier and conducts business in more than 30 countries.
Its revenues for the fiscal year ended March
31, 2017, were $2.1 billion.
For more information on Universal Corporation, visit its website at
www.universalcorp.com.
UNIVERSAL
CORPORATION CONSOLIDATED STATEMENTS OF INCOME
(in thousands of dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
Sales and other
operating revenues
|
|
$
|
284,622
|
|
|
$
|
295,475
|
|
Costs and
expenses
|
|
|
|
|
Cost of goods
sold
|
|
230,765
|
|
|
243,278
|
|
Selling, general and
administrative expenses
|
|
47,302
|
|
|
60,199
|
|
Operating income
(loss)
|
|
6,555
|
|
|
(8,002)
|
|
Equity in pretax
earnings (loss) of unconsolidated affiliates
|
|
(435)
|
|
|
(130)
|
|
Interest
income
|
|
670
|
|
|
363
|
|
Interest
expense
|
|
3,932
|
|
|
4,054
|
|
Income (loss) before
income taxes and other items
|
|
2,858
|
|
|
(11,823)
|
|
Income
taxes
|
|
(463)
|
|
|
(4,319)
|
|
Net income
(loss)
|
|
3,321
|
|
|
(7,504)
|
|
Less: net (income)
loss attributable to noncontrolling interests in
subsidiaries
|
|
256
|
|
|
2,028
|
|
Net income (loss)
attributable to Universal Corporation
|
|
3,577
|
|
|
(5,476)
|
|
Dividends on
Universal Corporation convertible perpetual preferred
stock
|
|
—
|
|
|
(3,687)
|
|
Earnings (loss)
available to Universal Corporation common shareholders
|
|
$
|
3,577
|
|
|
$
|
(9,163)
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to Universal Corporation common
shareholders:
|
|
|
|
|
Basic
|
|
$
|
0.14
|
|
|
$
|
(0.40)
|
|
Diluted
|
|
$
|
0.14
|
|
|
$
|
(0.40)
|
|
|
See accompanying
notes.
|
UNIVERSAL
CORPORATION CONSOLIDATED BALANCE SHEETS (in
thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
128,605
|
|
|
$
|
316,087
|
|
|
$
|
283,993
|
|
Accounts receivable,
net
|
|
209,321
|
|
|
218,665
|
|
|
439,288
|
|
Advances to
suppliers, net
|
|
58,218
|
|
|
69,044
|
|
|
103,750
|
|
Accounts
receivable—unconsolidated affiliates
|
|
62,239
|
|
|
46,794
|
|
|
2,373
|
|
Inventories—at lower
of cost or net realizable value:
|
|
|
|
|
|
|
Tobacco
|
|
917,945
|
|
|
846,356
|
|
|
565,943
|
|
Other
|
|
74,628
|
|
|
66,080
|
|
|
68,087
|
|
Prepaid income
taxes
|
|
16,523
|
|
|
19,948
|
|
|
16,713
|
|
Other current
assets
|
|
71,823
|
|
|
50,772
|
|
|
81,252
|
|
Total current
assets
|
|
1,539,302
|
|
|
1,633,746
|
|
|
1,561,399
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
|
|
Land
|
|
22,787
|
|
|
22,927
|
|
|
22,852
|
|
Buildings
|
|
267,740
|
|
|
264,438
|
|
|
266,802
|
|
Machinery and
equipment
|
|
606,473
|
|
|
593,507
|
|
|
597,213
|
|
|
|
897,000
|
|
|
880,872
|
|
|
886,867
|
|
Less
accumulated depreciation
|
|
(580,927)
|
|
|
(557,856)
|
|
|
(569,527)
|
|
|
|
316,073
|
|
|
323,016
|
|
|
317,340
|
|
Other
assets
|
|
|
|
|
|
|
Goodwill and other
intangibles
|
|
99,023
|
|
|
99,059
|
|
|
98,888
|
|
Investments in
unconsolidated affiliates
|
|
82,645
|
|
|
79,510
|
|
|
78,457
|
|
Deferred income
taxes
|
|
25,451
|
|
|
20,860
|
|
|
25,422
|
|
Other noncurrent
assets
|
|
42,494
|
|
|
57,693
|
|
|
41,899
|
|
|
|
249,613
|
|
|
257,122
|
|
|
244,666
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,104,988
|
|
|
$
|
2,213,884
|
|
|
$
|
2,123,405
|
|
|
See accompanying
notes.
|
UNIVERSAL
CORPORATION CONSOLIDATED BALANCE SHEETS (in
thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Notes payable and
overdrafts
|
|
$
|
45,064
|
|
|
$
|
70,753
|
|
|
$
|
59,133
|
|
Accounts payable and
accrued expenses
|
|
189,676
|
|
|
165,651
|
|
|
153,515
|
|
Accounts
payable—unconsolidated affiliates
|
|
869
|
|
|
2,730
|
|
|
7,231
|
|
Customer advances and
deposits
|
|
1,841
|
|
|
8,406
|
|
|
11,007
|
|
Accrued
compensation
|
|
19,404
|
|
|
22,863
|
|
|
32,007
|
|
Income taxes
payable
|
|
2,132
|
|
|
4,057
|
|
|
5,103
|
|
Current portion of
long-term debt
|
|
—
|
|
|
—
|
|
|
—
|
|
Total current
liabilities
|
|
258,986
|
|
|
274,460
|
|
|
267,996
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
368,821
|
|
|
368,468
|
|
|
368,733
|
|
Pensions and other
postretirement benefits
|
|
77,312
|
|
|
88,782
|
|
|
80,689
|
|
Other long-term
liabilities
|
|
31,189
|
|
|
45,480
|
|
|
31,424
|
|
Deferred income
taxes
|
|
46,836
|
|
|
11,778
|
|
|
47,985
|
|
Total
liabilities
|
|
783,144
|
|
|
788,968
|
|
|
796,827
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Universal
Corporation:
|
|
|
|
|
|
|
Preferred
stock:
|
|
|
|
|
|
|
Series A Junior
Participating Preferred Stock, no par value, 500,000
shares
authorized,
none issued or outstanding
|
|
—
|
|
|
—
|
|
|
—
|
|
Series B 6.75%
Convertible Perpetual Preferred Stock, no par value,
220,000 shares
authorized, no shares outstanding (218,490 at June 30,
2016, and none
at March 31, 2017)
|
|
—
|
|
|
211,562
|
|
|
—
|
|
Common
stock, no par value, 100,000,000 shares authorized,
25,325,595
shares issued and outstanding (22,766,040 at June 30, 2016,
and
25,274,506 at March 31, 2017)
|
|
321,215
|
|
|
209,044
|
|
|
321,207
|
|
Retained
earnings
|
|
1,024,567
|
|
|
1,044,674
|
|
|
1,034,841
|
|
Accumulated other
comprehensive loss
|
|
(63,723)
|
|
|
(76,959)
|
|
|
(69,559)
|
|
Total Universal
Corporation shareholders' equity
|
|
1,282,059
|
|
|
1,388,321
|
|
|
1,286,489
|
|
Noncontrolling
interests in subsidiaries
|
|
39,785
|
|
|
36,595
|
|
|
40,089
|
|
Total shareholders'
equity
|
|
1,321,844
|
|
|
1,424,916
|
|
|
1,326,578
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
2,104,988
|
|
|
$
|
2,213,884
|
|
|
$
|
2,123,405
|
|
|
See accompanying
notes.
|
UNIVERSAL
CORPORATION CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
(loss)
|
|
$
|
3,321
|
|
|
$
|
(7,504)
|
|
Adjustments to
reconcile net income (loss) to net cash provided (used) by
operating activities:
|
|
|
|
|
Depreciation
|
|
8,818
|
|
|
8,642
|
|
Net provision for
losses (recoveries) on advances and guaranteed loans to
suppliers
|
|
1,290
|
|
|
(113)
|
|
Foreign currency
remeasurement (gain) loss, net
|
|
(5,917)
|
|
|
9,642
|
|
Other, net
|
|
(1,944)
|
|
|
8,079
|
|
Changes in operating
assets and liabilities, net
|
|
(122,647)
|
|
|
(2,690)
|
|
Net cash provided (used)
by operating activities
|
|
(117,079)
|
|
|
16,056
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(6,356)
|
|
|
(7,303)
|
|
Proceeds from sale of
property, plant and equipment
|
|
206
|
|
|
252
|
|
Net
cash used by investing activities
|
|
(6,150)
|
|
|
(7,051)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Issuance (repayment)
of short-term debt, net
|
|
(16,058)
|
|
|
5,782
|
|
Dividends paid on
convertible perpetual preferred stock
|
|
—
|
|
|
(3,687)
|
|
Dividends paid on
common stock
|
|
(13,649)
|
|
|
(12,040)
|
|
Other
|
|
(2,827)
|
|
|
(2,250)
|
|
Net
cash used by financing activities
|
|
(32,534)
|
|
|
(12,195)
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
375
|
|
|
(170)
|
|
Net decrease in cash
and cash equivalents
|
|
(155,388)
|
|
|
(3,360)
|
|
Cash and cash
equivalents at beginning of year
|
|
283,993
|
|
|
319,447
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
128,605
|
|
|
$
|
316,087
|
|
|
See accompanying
notes.
|
NOTE 1. BASIS OF PRESENTATION
Universal Corporation, which together with its subsidiaries is
referred to herein as "Universal" or the "Company," is the leading
global leaf tobacco supplier. Because of the seasonal nature of the
Company's business, the results of operations for any fiscal
quarter will not necessarily be indicative of results to be
expected for other quarters or a full fiscal year. All adjustments
necessary to state fairly the results for the period have been
included and were of a normal recurring nature. Certain amounts in
prior year statements have been reclassified to conform to the
current year presentation. This Form 10-Q should be read in
conjunction with the financial statements and notes thereto
included in the Company's Annual Report on Form 10-K for the fiscal
year ended March 31, 2017.
NOTE 2. EARNINGS PER SHARE
The following table sets forth the computation of basic and
diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
(in thousands,
except share and per share data)
|
|
2017
|
|
2016
|
|
|
|
|
|
Basic Earnings
(Loss) Per Share
|
|
|
|
|
Numerator for
basic earnings (loss) per share
|
|
|
|
|
Net income (loss)
attributable to Universal Corporation
|
|
$
|
3,577
|
|
|
$
|
(5,476)
|
|
Less: Dividends on
convertible perpetual preferred stock
|
|
—
|
|
|
(3,687)
|
|
Earnings (loss)
available to Universal Corporation common
shareholders
for calculation of basic earnings per share
|
|
3,577
|
|
|
(9,163)
|
|
|
|
|
|
|
Denominator for
basic earnings (loss) per share
|
|
|
|
|
Weighted average
shares outstanding
|
|
25,407,293
|
|
|
22,734,225
|
|
|
|
|
|
|
Basic earnings
(loss) per share
|
|
$
|
0.14
|
|
|
$
|
(0.40)
|
|
|
|
|
|
|
Diluted Earnings
(Loss) Per Share
|
|
|
|
|
Numerator for
diluted earnings (loss) per share
|
|
|
|
|
Earnings (loss)
available to Universal Corporation common shareholders
|
|
$
|
3,577
|
|
|
$
|
(9,163)
|
|
Add: Dividends on
convertible perpetual preferred stock (if conversion
assumed)
|
|
—
|
|
|
—
|
|
Earnings (loss)
available to Universal Corporation common shareholders
for
calculation of
diluted earnings (loss) per share
|
|
3,577
|
|
|
(9,163)
|
|
|
|
|
|
|
Denominator for
diluted earnings (loss) per share:
|
|
|
|
|
Weighted average
shares outstanding
|
|
25,407,293
|
|
|
22,734,225
|
|
Effect of dilutive
securities (if conversion or exercise assumed)
|
|
|
|
|
Convertible
perpetual preferred stock
|
|
—
|
|
|
—
|
|
Employee
share-based awards
|
|
224,864
|
|
|
—
|
|
Denominator for
diluted earnings (loss) per share
|
|
25,632,157
|
|
|
22,734,225
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
$
|
0.14
|
|
|
$
|
(0.40)
|
|
NOTE 3. SEGMENT INFORMATION
The principal approach used by management to evaluate the
Company's performance is by geographic region, although the dark
air-cured and oriental tobacco businesses are each evaluated on the
basis of their worldwide operations. The Company evaluates the
performance of its segments based on operating income (loss) after
allocated overhead expenses (excluding significant non-recurring
charges or credits), plus equity in the pretax earnings (loss) of
unconsolidated affiliates.
Operating results for the Company's reportable segments for each
period presented in the consolidated statements of income and
comprehensive income were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
(in thousands of
dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
SALES AND OTHER
OPERATING REVENUES
|
|
|
|
|
Flue-Cured and Burley
Leaf Tobacco Operations:
|
|
|
|
|
North America
|
|
$
|
53,324
|
|
|
$
|
72,682
|
|
Other Regions
(1)
|
|
184,412
|
|
|
178,016
|
|
Subtotal
|
|
237,736
|
|
|
250,698
|
|
Other Tobacco
Operations (2)
|
|
46,886
|
|
|
44,777
|
|
Consolidated sales
and other operating revenue
|
|
$
|
284,622
|
|
|
$
|
295,475
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS)
|
|
|
|
|
Flue-Cured and Burley
Leaf Tobacco Operations:
|
|
|
|
|
North America
|
|
$
|
2,365
|
|
|
$
|
6,848
|
|
Other Regions
(1)
|
|
4,077
|
|
|
(17,017)
|
|
Subtotal
|
|
6,442
|
|
|
(10,169)
|
|
Other Tobacco
Operations (2)
|
|
(322)
|
|
|
2,037
|
|
Segment operating
income (loss)
|
|
6,120
|
|
|
(8,132)
|
|
Deduct: Equity
in pretax (earnings) loss of unconsolidated affiliates
(3)
|
|
435
|
|
|
130
|
|
Consolidated
operating income (loss)
|
|
$
|
6,555
|
|
|
$
|
(8,002)
|
|
(1)
|
Includes South
America, Africa, Europe, and Asia regions, as well as inter-region
eliminations.
|
|
|
(2)
|
Includes Dark
Air-Cured, Special Services, and Oriental, as well as inter-company
eliminations. Sales and other operating revenues for this
reportable segment include limited amounts for Oriental because the
business is accounted for on the equity method and its financial
results consist principally of equity in the pretax earnings (loss)
of an unconsolidated affiliate.
|
|
|
(3)
|
Equity in pretax
earnings (loss) of unconsolidated affiliates is included in segment
operating income (loss) (Other Tobacco Operations segment), but is
reported below consolidated operating income (loss) and excluded
from that total in the consolidated statements of income and
comprehensive income.
|
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SOURCE Universal Corporation