Universal Corp. Posts Loss

Revenue rises.
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Universal Corp.

(UVV) - Get Report

swung to a loss in the third quarter, due to a restructuring charge.

The tobacco buyer and packager lost $5.67 million, or 22 cents a share, in the quarter, compared with a profit of $27.91 million, or $1.08 a share, a year earlier.

Excluding a restructuring charge associated with the closure of its tobacco processing plant in Danville, Va., earnings were $9.83 million, or 38 cents a share.

Revenue increased 3.10% from a year ago to $878.78 million. Revenue from the tobacco business increased 4.04% to $475.18 million, while revenue in lumber and building products remained flat at $200.14 million and revenue from agri-products increased 4.19% to $203.46 million.

"During the third quarter we made the difficult decision to close our tobacco processing operations in Danville, Va., in response to the continued decline in tobacco production in the United States," the company said.

Operating profit fell 77.63% to $11.63 million in the third quarter while operating profit margin declined 478 basis points to 1.32% due to a $23.9 million pretax restructuring charge.

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