Tobacco.org

• Japan Tobacco Profit to Fall on Smoking Decline, Currency Moves  

Japan Tobacco Inc., the world’s third-largest publicly traded cigarette maker, forecast profit will fall 19 percent this year as fewer people smoke in its home market and currency movements hurt its international earnings.

Net income is forecast to be 100 billion yen ($1 billion) in the 12 months ending March 2010 from 123.4 billion yen last year, the company said in a statement to Tokyo’s stock exchange today. That compares with the 163 billion yen median estimate of 13 analysts surveyed by Bloomberg.

The maker of Camel and Mild Seven cigarettes is losing sales in Japan as the smoking rate falls and authorities introduce tighter tobacco controls. Earnings from surging overseas cigarette sales, helped by the 2007 takeover of U.K.- based Gallaher Group Plc, are being blunted by the strengthening of the yen against other currencies. . . .

Overseas tobacco revenue rose 18 percent to 3.12 trillion yen in the year to December on higher sales of Winston and Camel cigarettes in counties including Russia, Italy and Spain.

Jump to full article »