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Universal Swings to Loss

TSC and IRIS Staff

Tobacco buyer and packager Universal(UVV Quote) swung to a loss in the fourth quarter, hurt by restructuring and impairment charges.

The company lost $24.7 million, or 96 cents a share, in the quarter, compared with a profit of $33.8 million, or $1.31 a share, a year earlier. Excluding restructuring and impairment charges associated with the closure of its tobacco processing plant in Danville, Va., earnings were 23 cents a share. Analysts were expecting earnings of 83 cents a share.

Revenue increased 3.23% from a year ago to $853.1 million. Revenue from the tobacco business increased 3.36% to $409.3 million and in lumber and building products it grew 4.48% to $239.1 million. Revenue from agri-products sales rose 1.56% to $204.7 million.

"Fiscal year 2006 was extremely difficult with challenges in virtually all of the Company's business arenas," the Richmond, Va.-based company said. "In addition to the impact on sales and margins of a poor quality Brazilian crop and the strength of the Brazilian currency, results for the fiscal year were depressed by reduced yields on certain African crops from drought conditions, the sharp decline in demand for our blended strip products, foreign exchange losses, losses on farmer advances, and market pricing issues in almonds and sunflower seeds."

The company's stock closed at $37.35, up 46 cents Tuesday.