Reynolds American 1Q Profit Soars But Volumes Continue To Fall

Reynolds American Inc.'s (RAI) first-quarter earnings more than quadrupled from a year-ago period weighed by a settlement with the Canadian government, and higher product pricing and operational cost cuts continued to offset cigarette volume declines.

Revenue missed analyst expectations, but earnings came in ahead.

Reynolds, whose brands include Camel cigarettes and Grizzly moist snuff, has shifted its focus in the face of changing demand for cigarettes. The company has diversified into smokeless tobacco, cut production costs by shutting plants and put its energy into a few key brands. Last month, the company sold its Lane Ltd. roll-your-own and pipe tobacco unit to Denmark's Scandinavian Tobacco Group AS for $205 million.