RJ. Reynolds blamed increased promotion spending, such as discounting at retail, and lower volume for a 67% drop in net income to $70 million for the second quarter of 2003.
Net sales dropped 16% to $1.43 billion. The loss was partially offset by changes in RJRT’s returned-goods policy, which resulted in a $55 million adjustment.
“RJR’s financial results for second quarter 2003 reflect lower volume and increased promotion spending,” said RJR Chairman and CEO Andrew J. Schindler in a statement. “However, during the quarter, the combined market share of RJRT’s four key brands was up compared with both the previous and prior-year quarters.”
Total domestic volume for RJR, Winston-Salem, NC, dropped 11% to 21.3 billion units in the second quarter and fell 12.5% to 45.8 billion units for the first six months of the year.
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