<div id="subtitle">Reynolds American reports 4th-qtr earnings Thursday</div><div><p>Reynolds American Inc. reports its fourth-quarter and full-year results on Thursday. The following is a summary of key developments and analyst opinion related to the period.</p><p>OVERVIEW: The nation's second-biggest cigarette company, Reynolds sells Camel, Pall Mall and Natural American Spirit cigarettes and it owns American Snuff Co., which makes Kodiak and Grizzly brand smokeless tobacco.</p><p>Reynolds, based in Winston-Salem, N.C., said in October that tax increases and the tough economy cut the volume of cigarettes it shipped by 11 percent.</p><p>For the fiscal year that ended Dec. 31, Reynolds American forecast annual profit of $4.60 to $4.70 per share. Analysts on average predict earnings of $4.69 per share on $8.39 billion in revenue.</p><p>Last week, Richmond, Va.-based Altria Group Inc., owner of the biggest U.S. cigarette maker — Philip Morris USA, which sells Marlboro cigarettes, Black & Mild cigars and Copenhagen and Skoal smokeless tobacco products — reported that raising prices on cigarettes and cigars and cutting costs helped its fourth-quarter profit climb 7 percent even as cigar and cigarette volumes fell.</p><p>BY THE NUMBERS: For the fourth quarter, analysts surveyed by Thomson Reuters on average expect Reynolds American to post a profit of $1.11 per share on revenue of $2.07 billion. A year earlier, it earned 89 cents per share, on revenue of $2.18 billion.</p><p>ANALYST TAKE: Credit Suisse analyst Thilo Wrede wrote in a Jan. 19 that he expects Reynolds' promotion of Pall Mall to help offset declines in its other brands. Reynolds is promoting Pall Mall as longer-lasting and more affordable.</p><p>Wrede said Altria's promotion of Copenhagen Wintergreen smokeless tobacco could hurt Reynolds' Grizzly smokeless brand. Altria introduced Copenhagen Wintergreen in many states at prices lower than Grizzly sells for.</p><p>WHAT'S AHEAD: Wall Street will watch how growing scrutiny from the Food and Drug Administration, new federal marketing restrictions and the need to spend more on promotions affect tobacco companies.</p><p>Reynolds joined Lorillard Inc. and smaller tobacco companies to sure the government over several of the new restrictions. A federal judge overturned two.</p><p>STOCK PERFORMANCE: During the fourth quarter, Reynolds shares rose 19.3 percent to $52.97. Over the last 52 weeks, the stock has traded between $31.55 and $55.15.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68319645&bid=informcom" /></div><div id="copyright"><div>

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