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Reynolds American's net income rises 9 percent

Cigarette products of the R.J. Reynolds Tobacco Company, part of Reynolds American, are shown on the counter of a beverage store in Creamery, Pa., Tuesday, Oct. 24, 2006. Reynolds American Inc. said its third-quarter profit rose 45 percent as its Camel and Kool cigarettes and Grizzly smokeless tobacco all gained market share. (AP Photo/George Widman)
GEORGE WIDMAN

RICHMOND, Va. Reynolds American Inc. (RAI) says its third-quarter profit rose about 9 percent as higher prices and lower expenses from a legal settlement offset a decline in cigarette sales.

The nation's second-biggest tobacco company earned $457 million, or 84 cents per share, for the quarter ended September 30, up from $420 million, or 74 cents per share, a year ago.

Adjusted earnings were 86 cents per share, matching Wall Street expectations.

The Winston-Salem, North Carolina, maker of Camel and Pall Mall cigarettes said Tuesday that revenue excluding excise taxes increased about 1 percent to $2.14 billion, also matching expectations.

Its R.J. Reynolds Tobacco subsidiary sold 4 percent fewer cigarettes. Camel and Pall Mall both gained market share.

Volume for its smokeless tobacco brands that include Grizzly and Kodiak rose 7 percent.