Universal Reports 22 Percent Gain

Source from:  Tobacco Reporter 03/08/2010

Universal Corp. reported net income of $142 million for the nine months ended Dec. 31, 2009, 22 percent above last year's results of $116 million. Last year's strong performance was overshadowed by the recognition of $45 million in currency-related costs due to the rapid strengthening of the U.S. dollar, and the current year has benefited from a $42 million reduction in those costs. That benefit was partially offset by delays in shipments from Africa and North America this year. Those shipment delays also caused a 3 percent reduction in revenues for the nine months. "Our operations continue to perform well as we look at them over the crop cycle," said George C. Freeman, III, chairman, president, and CEO of Universal. "Timing differences are a normal part of our business whether caused by farmer deliveries that affect inventory levels or by shipments that affect both inventory and income recognition. "This year is no exception as both North American and African shipments have been delayed. We currently expect the shipments to be substantially completed by our fiscal year end. We are benefiting from continued cost controls and global coordination, and we are pleased with our performance so far this year." Enditem