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Province of New Brunswick Commences Legal Action 

Rothmans Inc. confirmed today that Rothmans Inc. and its 60% owned subsidiary Rothmans, Benson & Hedges Inc. ("RBH") are named as defendants, along with Imperial Tobacco Canada Limited, JTI-Macdonald Corp. and a number of international tobacco product manufacturers, in a lawsuit filed by the Province of New Brunswick in the Court of Queen's Bench of New Brunswick. The lawsuit is based upon grounds which include alleged misrepresentations made by the defendants in respect of the hazards of tobacco products and seeks to recover unspecified damages for costs that are alleged by the Government of New Brunswick to have been incurred in providing health care benefits to New Brunswick residents who have allegedly suffered smoking-related illnesses.

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Rothmans annual profit up 18 per cent despite contraband and other challenges 

Cigarette maker Rothmans Inc. (TSX:ROC) grew its full-year earnings by 18 per cent to $117.6 million, but said that despite certain regulatory changes to the industry, it was still being hit by contraband and competitive challenges.

The company said net sales at subsidiary Rothmans, Benson & Hedges Inc. rose eight per cent to $670.6 million on price increases, while Rothmans' net profit for the year was $1.72 per diluted share, compared with $99.8 million or $1.46 per share in the previous year, when RBH sales were $618.6 million.

CEO John Barnett, who has long complained about the impact of contraband on the company, said Friday that the results were "a substantial achievement in a market where we continue to see industry volume erosion as a result of the contraband activity."

"While we are encouraged by some of the recent government announcements involving certain regulatory changes and enforcement strategies, we believe that the will to execute these and other required initiatives is the key to mitigating the contraband issue," Barnett said during a conference call.

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• UPDATE 2-Rothmans profit gets lift from higher prices 

Fourth-quarter profit at Rothmans Inc grew 17 percent, Canada's No 2 cigarette maker said on Friday, as price increases more than offset pressure from a growing trade in contraband tobacco.

Increased competition to sell low-priced cigarettes and declining volumes posed further difficulties, but Rothmans said it is well positioned financially to withstand market pressures thanks to C$234.9 million in cash reserves.

Known for its Craven A, Rothmans and Benson & Hedges brands, the company said it earned C$21 million ($21 million), or 31 Canadian cents per share, in the period ended March 31.

That is up from C$18 million, or 26 Canadian cents per share, in the same period last year and betters analyst expectation for a profit of 30 Canadian cents a share.

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• Rothmans Loses Bid to Sue Canada Over Health Costs (Update1) 

A judge threw out a lawsuit by Rothmans Inc. and other tobacco companies that sought to blame the Canadian government for health-related costs incurred by British Columbia.

The province sued the companies in 2001, seeking to recover billions of dollars spent by its government-funded health-care system to treat people with diseases such as emphysema and lung cancer. The companies sued Canada last year, claiming federal officials were responsible for the costs.

``The allegations cannot succeed because Canada is immune to liability,'' British Columbia Supreme Court Judge Catherine Wedge wrote in an April 11 ruling in Vancouver. Only Parliament can lift the immunity, she said.

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Rothmans Loses Bid to Sue Canadian Government Over Health Costs 

A judge threw out a lawsuit by Rothmans Inc. and other tobacco companies that sought to blame the Canadian government for health-related costs incurred by British Columbia.

The province sued the companies in 2001, seeking to recover billions of dollars spent by its government-funded health-care system to treat people with diseases such as emphysema and lung cancer. The companies sued Canada last year, claiming federal officials were responsible for the costs.

``The allegations cannot succeed because Canada is immune to liability,'' British Columbia Supreme Court Judge Catherine Wedge wrote in an April 11 ruling in Vancouver. Only Parliament can lift the immunity, she said.

Tobacco companies have unsuccessfully fought a British Columbia law that lets the province collect damages if it shows the cigarette makers breached an obligation to customers by failing to inform them of the risks of smoking. Ontario and other provinces have passed laws to allow similar suits.

Wedge also denied the companies' request for a finding that they committed no ``tobacco-related wrongs,'' saying that will be determined at trial.

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Province of New Brunswick Commences Legal Action 

Rothmans Inc. confirmed today that Rothmans Inc. and its 60% owned subsidiary Rothmans, Benson & Hedges Inc. ("RBH") are named as defendants, along with Imperial Tobacco Canada Limited, JTI-Macdonald Corp. and a number of international tobacco product manufacturers, in a lawsuit filed by the Province of New Brunswick in the Court of Queen's Bench of New Brunswick. The lawsuit is based upon grounds which include alleged misrepresentations made by the defendants in respect of the hazards of tobacco products and seeks to recover unspecified damages for costs that are alleged by the Government of New Brunswick to have been incurred in providing health care benefits to New Brunswick residents who have allegedly suffered smoking-related illnesses.

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• Rothmans Q3 sales up 11 per cent despite impact of contraband tobacco 

Cigarette maker Rothmans Inc. (TSX:ROC) saw its profit rise 22 per cent rise in the October-December quarter, as sales grew by 11 per cent despite pressures from the contraband market.

Canada's only publicly traded cigarette maker said Wednesday that net sales at subsidiary Rothmans, Benson & Hedges, which is 60 per cent owned by Rothmans, were $170.8 million, up from $153.6 million in the year-earlier quarter.

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Rothmans delivers strong performance during the third quarter of fiscal 2008 

Rothmans Inc. today announced strong results for the third quarter and first nine months of fiscal 2008, which ended December 31, 2007. Rothmans' earnings for the third quarter of fiscal 2008 were $C29.4 million, or $0.43 basic earnings per share, compared with $24.1 million or $0.35 basic earnings per share in the third quarter of fiscal 2007. For the first nine months of this fiscal year, Rothmans' earnings were $96.6 million or $1.42 basic earnings per share, compared with $81.7 million or $1.20 per share for the first nine months of the prior fiscal year. Sales at 60%-owned subsidiary Rothmans, Benson & Hedges Inc., net of excise duty and taxes, increased to $170.8 million in the most recent quarter compared with $153.6 million in the third quarter of fiscal 2007. Sales in the first nine months of this fiscal year were $527.9 million compared with $481.7 million for the same period a year earlier.

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Rothmans Inc. Announces Third Quarter Conference Call and Webcast 

Rothmans Inc. invites analysts and portfolio managers to participate in a conference call with management to discuss the results of the third quarter of fiscal 2008, which ended December 31, 2007. Shareholders and media are also invited to listen to the call by telephone or by webcast through the company's investor website, www.rothmansinc.ca.

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Tobacco giants' profits remain golden 

Despite tobacco industry claims that one-third of its market in Ontario and Quebec has been grabbed by smugglers, the cigarette companies' financial reports don't show much impact on their performance.

Healthy results reported by all three major tobacco producers indicate the contraband problem has not been as damaging as the industry is making it out to be. . . .

Most of the illegal tobacco producers are located on the U.S. side of the Akwesasne reserve.

Jerry Montour, chief executive officer of Grand River Enterprises, a federally licensed tobacco producer on the Six Nations reserve near Brantford, Ont., said the simplest way to stop the smuggling is to lay charges against companies that supply tobacco, paper, filters and machines to illegal producers.

"Why are (the suppliers) not held accountable?" he asked. "You know why they aren't? Because they are white."

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Rothmans raises dividend after solid profit rise in 'challenging environment? 

Cigarette maker Rothmans Inc. (TSX:ROC) is stoking up its dividend - already one of the richest among Canadian corporations - after reporting rising summer-quarter sales and profits despite a "challenging operating environment."

Canada's only publicly traded tobacco company said Friday it is increasing its regular quarterly dividend to 35 cents per share from 30 cents.

The annualized payout of $1.40 represents a yield of 6.3 per cent at Thursday's closing price of $22.09, up from 5.4 per cent.

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UPDATE 2-Higher prices, sales boost Rothmans profit  

Second-quarter profit at Rothmans Inc , Research) rose nearly 18 percent, on the back of higher prices and stronger sales, Canada's No. 2 cigarette maker said on Friday.

Toronto-based Rothmans, which makes Rothmans, Craven A and Benson & Hedges brand cigarettes, also announced a 16 percent increase to its annual dividend to C$1.40 from C$1.20.

Net earnings in the quarter ending Sept. 30 increased to C$33.3 million ($34.7 million), or 49 Canadian cents a share, from C$28.3 million, or 41 Canadian cents a share, in the year-earlier quarter.

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Rothmans hikes dividend 

Tobacco company Rothmans Inc. is hiking its quarterly dividend 16 per cent, to 35 cents a share, after second-quarter profit rose to $33.3-million from a year-ago $28.3-million.

Toronto-based Rothmans said Friday its earnings for the quarter ended Sept. 30 amounted to 49 cents a share, compared with 42 cents per share a year ago.

The company announced its regular dividend will rise to $1.40 on an annualized basis, from $120, while the quarterly payout rises to 35 cents from 30 cents.

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Cigarette firm profit up 15% 

Cigarette company Rothmans Inc. has reported a 15 per cent rise in spring-quarter profit to a record $33.8 million, stoked by price increases.

Net income amounted to 50 cents per share in the company's first quarter ended June 30, compared with $29.3 million, or 43 cents per share, a year earlier, the Toronto-based company said yesterday.

Sales at 60 per cent-owned operating company Rothmans Benson & Hedges Inc., net of excise duty and taxes, increased to $177.4 million from $162.9 million.

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UPDATE 1-Rothmans profit rises in first quarter  

Rothmans Inc., Canada's second-biggest cigarette maker, reported a higher first-quarter profit on Tuesday, thanks to price increases across all its products.

Rothmans, which makes Craven A and Benson & Hedges brand cigarettes, earned C$33.8 million ($32.34 million), or 50 Canadian cents a share, in the period ended June 30, up from a profit of C$29.3 million, or 43 Canadian cents a share, in the same period last year.

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