RJR Nabisco Again Posts Profit
RJR Nabisco Inc., continuing to reap the benefits of its financial restructuring, said Wednesday that it earned $79 million in the second quarter.
The food and tobacco conglomerate, which returned to profitability and public ownership this year after its 1989 leveraged buyout, said its earnings translated to 3 cents per share after accounting for preferred stock dividends.
The results contrasted with a loss of $108 million, or 35 cents per share, in the same quarter of 1990 and followed earnings of $5 million in the first quarter, the first time RJR Nabisco reported a quarterly profit since the $24.53-billion leveraged buyout in 1989.
Second-quarter revenue rose to $3.78 billion from $3.46 billion.
The company’s earnings before interest, taxes, depreciation and amortization, a key figure for a company with a heavy debt load, was $1.06 billion, up from $1.04 billion a year earlier.
RJR Nabisco Chairman Louis V. Gerstner said the company’s financial restructuring is bearing fruit. The conglomerate underwent a $7.6-billion recapitalization last year and sold common stock and new bonds earlier this year to retire expensive junk bond debt.
RJR Nabisco said its food business had operating income of $226 million, up from $199 million a year earlier. Sales rose to $1.57 billion from $1.44 billion.
The company’s food brands include Oreo and Teddy Graham cookies, Planter’s nuts, LifeSavers candy and Milk-Bone dog biscuits.
For the first six months, RJR Nabisco earned $84 million, contrasted with a loss of $330 million in the first half of 1990.
More to Read
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.