Updated from 12:04 p.m. EDT
said third-quarter and full-year earnings will be lower than expected, due to tough competition and increased promotional spending.
R.J. Reynolds expects third-quarter earnings between $1.45 and $1.75 a share. Analysts surveyed by Thomson First Call had expected earnings of $2.19 a share. In the year-ago period, the company earned $2.14 a share. For 2002, the company projects earnings per share between $6.85 and $7.30. Analysts had expected earnings of $8.02 a share. In 2001, the company earned $7.74 a share.
The shares closed Friday on the
down $5.67, or 9.73%, to $52.58.
The company said it will boost its promotional spending amid heightened competition. "In light of these changing dynamics, the company has begun a comprehensive review of all of our resources to ensure that they are being used in the most efficient and effective manner. In addition, given the uncertainty surrounding competitive activity going forward and its potential impact on volume, we feel it is appropriate to provide a somewhat broader range of income levels for the year," the company said in a press release.