BAT in 1.25 Bln Pound Buyback as Earnings Rise

Source from:  Reuters 02/24/2012

LONDON, Feb 23 (Reuters) - British American Tobacco , the world's second-biggest cigarette maker, increased its share buyback to 1.25 billion pounds ($1.96 billion) on Thursday after it raised prices and saw strong growth in emerging markets to help boost its annual earnings. The London-based maker of Kent, Dunhill, Lucky Strike and Pall Mall cigarettes completed a share buyback of 750 million pounds in 2011 and is increasing the amount for 2012 as it is confident of growth ahead for its shareholders. The group is seeing smoking levels decline in Western Europe and North America, but is offsetting this by increasing its prices and making gains from strong growth in developing markets such as Russia, Romania and Pakistan. "The economic climate around the world is far from settled but we remain confident that our strategy should continue to generate growth for our shareholders in the years ahead," said Chairman Richard Burrows in a results statement. The group, which made 705 billion cigarette last year, posted a rise of 11 percent in 2011 adjusted diluted earnings per share to 194.6 pence narrowly ahead of a company compiled consensus of 194.3p and a ThomsonReuters forecast of 193.9p. The full-year dividend, which is set at 65 percent of earnings, also rose 11 percent to 126.5p a share. Enditem