Morrisville Tobacco Company's Profit Gains 684 Percent

Source from:  The Business Journal of the Greater Triad Area 06/10/2009

Aided by higher prices on their products and lower restructuring charges, Morrisville-based tobacco leaf processor and distributor Alliance One International posted a profit gain of 684 percent for the fiscal year that ended in March. Net income hit $132.6 million, or $1.50 per basic share, for the 12-month period, compared to $16.9 million, or $0.19 per basic share, for the prior fiscal year. "By all measures Alliance One had a very solid year that fully met our expectations," says CEO Robert E. Harrison. " Heading into the coming year our balance sheet is in good shape with strong liquidity and is well positioned to support future growth." Alliance One, which employs 4,700 people worldwide, selects, processes and sells primarily flue-cured, burley, and Oriental tobaccos that are used in cigarette making in the Americas, Europe, Africa, and Asia. During the past fiscal year, the publicly traded company says in an earnings report, South American revenue increased by $20 million due to price increases that more than offset a decline in kilos sold. Meanwhile, in North America, Asia, Europe and Africa, revenue shot up by $220 million due to price increases and a slight increase in quantities sold. Prior fiscal year restructuring charges of $20 million, mostly from overseas employee severance packages and facilities closings, declined to $591,000 in the fiscal year ending in march The company's total sales and operating revenue was $2.26 billion for the fiscal year ending March 31, compared to $2.01 billion in the prior year. Alliance One shares trade on the New York Stock Exchange, currently in the $5.59 range, and near the 52-week high of $6.52. Enditem