US: Universal Six-month Shipping Volume Stable

Source from:  Tobacco Journal  11/09/2012

Universal Corp said leaf shipping volume, helped by carryovers, was stable in the six months to 30 Sept, but shipments in the next half will not match prior fiscal-year performance.
 
"Our results have been good for the first half of the fiscal year, but they were heavily influenced by the effects of shipment timing”, said Chief Executive Officer George Freeman. "We saw carryover sales from last year's large African crops in this fiscal year's first quarter and accelerated shipments from South America and other origins in the second quarter.  During the same period last fiscal year, shipments began later in Brazil and Africa due to a slow start to the season caused by oversupplied markets.”

Universal on 6 Nov reported operating income from flue-cured and burley operations rose by USD 16 million (EUR 12.5 million) in the second quarter to USD 77.5 million. Sales were 5 per cent higher at USD 631.4 million. The increase in profit came from operations outside North America. North American operating income dipped USD 1.5 million to USD 3.6 million.

"Although production of flue-cured and burley tobacco outside of China is down, our leaf volumes shipped during the first six months are comparable to last year's levels,” Freeman said in the statement.  "Our uncommitted stocks have also been reduced to very low levels, and we do not anticipate shipment volumes in the second half of the fiscal year to be equivalent to those of the previous fiscal year.”

Universal's fiscal year ends 31 March, 2013. (ci) Enditem