Alliance Reports Increased Sales

Source from:  Tobacco Reporter 06/17/2010

Alliance One International's sales and other operating revenues during the year to the end of March, at $2,308.3 million, were up by 2.2 per cent on those of the previous year. And gross profit was up by 9.9 per cent to $396.5 million. Net income, at $79.2 million or $0.89 per basic share, was down from $132.6 million or $1.50 per basic share. The sales increase was said to have been driven by improved average selling prices partially offset by a decrease in the volume sold and reduced processing and other revenues. Tobacco revenues in the South America region decreased by $36.3 million or 4.2 per cent primarily due to a decrease in the quantity sold partially offset by increased average sales prices. The decrease in volume was said to have been mainly attributable to carryover sales that occurred during the previous financial year but not in the 2010 financial year to the end of March, and also to smaller crop sizes in the year under review. Tobacco revenues in the company's "other regions" increased by $101.7 million or 7.8 per cent primarily as a result of increased volume sales at increased average prices. Processing and other revenues decreased mainly due to reduced processing in Africa and Europe. CEO, Robert E. Harrison, said Alliance One had delivered another strong year with continued improvement in its operating performance, resulting in not only a record top line and gross profit, but in operating income as well. "At the same time, while pre-tax income decreased $35.1 million to $74.2 million this year, after one time costs of $59.9 million associated with our debt refinancing and previously disclosed legacy FCPA [Foreign Corrupt Practices Act] matter, improvements in our core underlying pre-tax operating results are clear," he said. "Key drivers include our security of supply focused planning and talented employee base, which continue to differentiate and define our value added business model." Enditem