Universal Corp. reported unaudited consolidated earnings results for the second quarter and six months ended September 30, 2009. For the second quarter of fiscal year 2010, net income was $52.5 million, or $1.77 per diluted share, compared to last year's net income of $41.8 million, or $1.38 per diluted share. The increase was primarily due to a $25 million decline in currency-related costs and the tax provision reversal. Revenues for the quarter of about $648 million were down significantly, as some shipments were either accelerated into the first quarter or delayed until later in the year. The company reported operating income of $75.865 million and income before income taxes and other items of $75.007 million compared to the operating income of $71.195 million and income before income taxes and other items of $69.082 million for the same period a year ago. For six months, the company reported net income of $96.3 million, or $3.23 per diluted share. Results were above last year's net income of $62.9 million, or $2.02 per diluted share, mostly because of a $17 million decline in currency-related costs, better margins, and a favorable tax rate related to the reversal of provisions for uncertain tax positions due to expiration of the time period during which those positions could be challenged by the tax authorities. Revenues for the six months of about $1.3 billion were flat, as lower volumes due to later shipments and reduced old crop tobacco sales were offset by a better mix of business and higher prices in some areas. The company reported operating income of $145.637 million and income before income taxes and other items of $140.830 million compared to the operating income of $109.382 million and income before income taxes and other items of $100.503 million for the same period a year ago. The company reported that net cash used by operating activities of $133.749 million compared to the net cash used by operating activities of $189.306 million for the same period a year ago. The company reported purchase of property, plant and equipment of $26.429 million compared to the purchase of property, plant and equipment of $21.748 million for the same period a year ago.

Universal Corp. announced that the Board of Directors has increased the regular quarterly dividend on the common shares of the Company by one cent to forty-seven cents ($0.47) per share. The dividend is payable February 9, 2010, to common shareholders of record at the close of business on January 11, 2010. The Board of Directors also declared a quarterly dividend of $16.875 per share on the Series B 6.75% Convertible Perpetual Preferred Stock, payable December 15, 2009, to shareholders of record as of 5:00 p.m. Eastern Time on December 1, 2009.

Universal Corp., Q2 2010 Earnings Call, Nov-05 2009