Dimon Inc. 1Q Profit Down 5 Percent

Source from:  DANVILLE, Va. (Associated Press) 08/05/2004

Leaf-Tobacco Dealer Dimon Inc.'s 1Q Profit Down 5 Percent From Last Year Leaf-tobacco dealer Dimon Inc. said Tuesday that first-quarter earnings fell 5 percent from prior-year results that were boosted by the settlement of a claim against the Iraqi Tobacco Monopoly. In the period ended June 30, Dimon's net income fell 5 percent to $13.4 million, or 29 cents per share, from $14.1 million, or 31 cents per share, last year. In 2003, the company benefited from United Nations compensation for trade that went unpaid when Iraq invaded Kuwait in 1990. Excluding this item, profit rose 9 percent compared to last year's operating income of $12.3 million, or 27 cents per share. Latest-quarter sales fell 18 percent to $299.7 million from $364.5 million, hurt by delayed shipments from South America and Europe, along with lower crop sales from Zimbabwe and Argentina. Dimon said income from investments helped the company overcome the revenue loss. Company officials also noted that shipments from Asia increased compared to a year ago. "A lack of available freight space out of South America has been a hindrance, but our purchasing and processing in the region are going very well and we are shipping product continuously," chairman and chief executive Brian J. Harker said in a press release. He added that the company expects African operation to contribute significantly to earnings over the next two quarters, despite an ongoing decline in the Zimbabwe crop. Dimon said it continues to expect fiscal 2005 profit of between 45 cents and 55 cents per basic share, excluding restructuring charges and certain investments. Enditem