http://www.tobacco.org/newsfeed/org/uvv.rss Latest top tobacco news headlines en-us http://www.thestreet.com/story/11344118/1/universal-corporation-uvv-todays-featured-tobacco-loser.html http://tobacco.org/news/330463.html Universal Corporation (UVV) pushed the Tobacco industry lower today making it today's featured Tobacco loser. The industry as a whole closed the day down 0.6%. By the end of trading, Universal Corporation fell 75 cents (-1.7%) to $42.78 on average volume. Throughout the day, 466,831 shares of Universal Corporation exchanged hands as compared to its average daily volume of 340,100 shares. The stock ranged in price between $42.48-$44.21 after having opened the day at $43.84 as compared to the previous trading day's close of $43.53. Another company within the Tobacco industry that decreased today was Star Scientific (CIGX), down 3.2%. . . . TheStreet Ratings rates Universal Corporation as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. thestreet.com Tue, 13 Dec 2011 05:00:00 GMT http://www.bbj.hu/business/hungarian-tobacco-industry-companies-establish-new-professional-association_61747 http://tobacco.org/news/329767.html Hungarian tobacco companies on Thursday announced the establishment of a new professional association, the Hungarian Association of Tobacco Industry Investors (DBMSZ). The DBMSZ aims to represent the industry’s professional and business interests in a concerted way. Budapest Business Journal Hungary Thu, 01 Dec 2011 05:00:00 GMT http://www.bworldonline.com/content.php?section=Corporate&title=Tobacco-grower-to-expand-farms-amid-higher-prices&id=41166 http://tobacco.org/news/328425.html TOBACCO PRODUCER Universal Leaf Philippines, Inc. is set to expand its plantation area with an additional three thousand hectares to increase output by a quarter in the next three years, an official said. In the meantime, the firm expects to post a 20% growth in profits for 2011 over year-ago levels amid improved prices for most leaf variants. Winston S. Uy, president of the Universal Leaf Philippines, said the company would be spending at least P300 million for the expansion. “We will finance an additional P300 million from additional bank lines of credit,” he said in a telephone interview on Saturday. Business World Philippines Sun, 06 Nov 2011 04:00:00 GMT http://www.prnewswire.com/news-releases/universal-corporation-to-webcast-investor-presentation-130983148.html http://tobacco.org/news/327025.html Universal Corporation (NYSE: UVV) will host a live audio webcast of the Company's New York presentation to investors at www.universalcorp.com on Wednesday, October 5, 2011. The webcast will air a presentation by George C. Freeman, III, Chairman, President, and Chief Executive Officer, W. Keith Brewer, Executive Vice President and Chief Operating Officer, and David C. Moore, Senior Vice President and Chief Financial Officer, and will be in listen-only mode. It will start when Mr. Freeman begins to address the audience, which is expected to be at 12:45 p.m., Eastern Time. PR Newswire Mon, 03 Oct 2011 04:00:00 GMT http://www.guardian.co.uk/global-development/2011/sep/14/malawi-child-labour-tobacco-industry?CMP=twt_gu http://tobacco.org/news/326176.html Many of Malawi's estimated 80,000 child tobacco workers suffer from a disease called green tobacco sickness, or nicotine poisoning. Symptoms include severe headaches, abdominal cramps, muscle weakness, breathing difficulties, diarrhoea and vomiting, high blood pressure and fluctuations in heart rate, according to the World Health Organisation. Since the handling of the leaves is done largely without protective clothing, workers absorb up to 54 milligrams of dissolved nicotine daily through their skin, equal to the amount of 50 cigarettes, according to 2005 research by Prof Robert McKnight, of the College of Public Health at the University of Kentucky, Lexington. Farm owners routinely plead ignorance of the health implications. . . . "In any developing country where tobacco is grown, you find child labour starting at the age of five," says Marty Otañez, a researcher at the University of California's tobacco control research and education centre. Malawi, which has the highest number of child labourers in Africa, is a key offender. Health issues aside, children are also financially exploited. Olofala and Ethel often work 12-hour days, but neither earns a salary. They "help" their parents, who work on one of Kasungu's 22,000 registered tobacco farms and estates. Other kids receive an average of $0.25 for long hours of unrelenting work. They are arguably the lucky ones; some never see their money at all. "We have many reports of children who were lured into labour with promises of good pay. But at the end of a season, all they get is an old sweater," says Grace Masanya, Malawi project manager for Plan, the international child rights NGO. At the heart of the problem is Malawi's poor economic situation. Parents involve their children in economic activities to provide food for the family. Over the past decade, the country has become one of the five largest tobacco producers in the world, largely due to low tariffs on unmanufactured tobacco imports, cheap labour and lack of regulations. According to the UN's statistical division, more than 98% of Malawi's low-cost leaf is exported, with the EU and the US top destinations. And more than 90% of Malawi's tobacco is bought by two US-based leaf buyers, Universal Corporation and Alliance One International, which resell it to international tobacco firms. Their main clients are two of the world's biggest cigarette manufacturers, Philip Morris (Marlboro) and British American Tobacco (Lucky Strike). Consequently, Malawi's tobacco is found in the blend of almost every cigarette smoked in the west. . . . Part of the reason for those huge profits is that tobacco giants benefit from $1.2bn in unpaid child labour costs, according to Otañez's colleague Prof Stanton Glantz. Replacing child labour with adults paid the minimum wage would increase the production costs by $10m per year in Malawi alone, he says. For Glantz, the solution is simple: "If major tobacco companies were genuinely committed to improving the socio-economic conditions of child workers, they should rectify harmful business practices by enforcing a policy that they will not purchase any tobacco grown using child labour." The tobacco giants disagree. . . . While this standoff continues, the people of Malawi benefit little from their "green gold". Malawi remains one of the least developed nations in the world, ranking 153 out of 169 countries on the 2010 Human Development Index. About 40% of the 13.2 million Malawians live below the poverty line of $1.25 a day. The Guardian reader@guardian.co.uk ( * Kristin Palitza) Malawi Wed, 14 Sep 2011 04:00:00 GMT http://www.prnewswire.com/news-releases/universal-corporation-reports-eu-court-decision-129554463.html http://tobacco.org/news/325976.html Universal Corporation (NYSE: UVV) (the "Company") announced that earlier today the General Court of the European Union (the "Court") issued a decision rejecting the appeal of Deltafina, S.p.A, its Italian subsidiary. That appeal related to the European Commission's revocation of Deltafina's immunity from a penalty of EUR 30 million (about $41 million on September 9, 2011) assessed against Deltafina and the Company jointly for actions in connection with Deltafina's purchase and processing of tobacco in the Italian raw tobacco market between 1995 and 2002. The Company and Deltafina are reviewing the decision and will evaluate whether to file an appeal. At this time, it is likely that the Company will accrue a charge for the fine and related interest in the quarter that will end on September 30, 2011. That amount, as of September 9, 2011, is estimated at approximately $49 million at current market exchange rates. PR Newswire Italy Europe Fri, 09 Sep 2011 04:00:00 GMT http://www.prnewswire.com/news-releases/universal-corporation-reports-solid-annual-results-122463968.html http://tobacco.org/news/320497.html George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE: UVV), announced that for the fiscal year ended March 31, 2011, diluted earnings per share were $5.42, down about 5% from last year's record earnings of $5.68 per diluted share. Net income attributable to Universal Corporation for fiscal year 2011 was $156.6 million, a decrease of 7% compared to $168.4 million last year, primarily due to lower results for the Company's South American operations and Oriental tobacco joint venture. Revenues for fiscal year 2011 were $2.6 billion, a 3% increase compared to last year, reflecting higher selling prices on lower volumes shipped during the period. The price increases were generally related to higher green leaf costs and the effects of a weak U.S. dollar. PR Newswire Mon, 23 May 2011 04:00:00 GMT http://www.businessmirror.com.ph/home/regions/11166-isabela-province-perfect-for-growing-burley-tobacco http://tobacco.org/news/320010.html FERTILE soil, an adequate supply of water and humid weather make the province of Isabela in the mountainous region of Cagayan Valley the perfect place to grow quality burley tobacco sought by cigarette manufacturers worldwide. Over the past few years, the demand for quality burley tobacco, globally known as Isabela burley, continues to increase, benefiting thousands of farmers in the province who are now cashing in on this cash crop. Cagayan Valley is blessed with a fertile soil and the mighty Cagayan River that supplies farmers water for their crops. The humidity provided by the mountain range in the region, plus good agricultural practice, now makes tobacco farming in Isabela more profitable. Universal Leaf Philippines Inc. (ULPI), a multinational leaf supplier, said Isabela burley is now considered one of the best types of tobacco used to manufacture cigarettes. Business Mirror Mon, 16 May 2011 04:00:00 GMT http://www.kentucky.com/2011/03/28/1687253/farmers-file-class-action-suit.html http://tobacco.org/news/317348.html Several Kentucky farmers have filed a class-action lawsuit against a leading tobacco merchant they say failed to honor contracts to purchase burley tobacco from them at the end of the 2010 crop year. Now some of the farmers say they would rather leave the business than gamble on tobacco. The lawsuit, which was filed against Universal Leaf North America last week in Harrison Circuit Court, says hundreds of farmers have lost what amounts to millions. Among the plaintiffs are Jerry Feagan of Berry, Steve Lang of Cynthiana and Thomas Leach and Larry O'Neill, both of Dry Ridge, who say agents of Universal Leaf North America refused to accept tobacco, the lawsuit says. They are seeking monetary damages to be determined at trial. Lexington Herald-Leader shopkins@herald-leader.com (Shawntaye Hopkins) Mon, 28 Mar 2011 04:00:00 GMT http://www.reuters.com/article/idUSTRE6B674C20101207 http://tobacco.org/news/311959.html Altria Group Inc agreed on Tuesday to pay $5 million in a rare settlement over the death of a chewing tobacco customer. But the deal arose from one-time circumstances and Altria does not plan to settle future claims, a spokesman for the company said. The case was brought by the family of Bobby Hill of Canton, N.C. He chewed tobacco made by U.S. Smokeless Tobacco Co -- bought by Altria in 2009 -- from the time he was a teenager until his death from tongue cancer at age 42 in 2003, attorneys for his family said. . . . The company only chose to settle with Hill's family to honor the deal struck by U.S. Smokeless Tobacco before the acquisition, Altria spokesman Steve Callahan said. "We have no intention of settling cases such as this in the future," Callahan added. . . . Ponvert said Altria also was prodded to settle by documents obtained in the course of the litigation. He cited memos that describe the company developing plans to market chewing tobacco to users as young as 15 years old, such as minutes from one meeting in 1972. In another memo, a man roughly Hill's age recalled getting free samples from a car driven through neighborhoods by a Skoal salesman, the same summer Hill starting chewing. . . . The case was Estate of Bobby Hill vs. U.S. Smokeless Tobacco Co filed in state Superior Court in Stamford, Connecticut. Reuters Tue, 07 Dec 2010 05:00:00 GMT http://www.publicintegrity.org/articles/entry/2341/ http://tobacco.org/news/306172.html A flurry of federal enforcement action targeting payoffs by subsidiaries of two U.S. tobacco companies may signal a broader regulatory assault against the industry's business practices abroad, according to experts on the Foreign Corrupt Practices Act. . . . "The tobacco industry is going to have to take a look at itself and the way it's been doing business," said Dick Cassin, a lawyer with 30 years worth of FCPA experience, and author of The FCPA Blog. "A lot of the law-on-the-ground practices are just going to have to stop." This is the first time the federal government has taken action against tobacco companies for payoffs overseas, according to the FCPA Digest, which tracks actions under the act. FCPA experts say these actions could be a broad warning to the tobacco industry that the enforcement agencies are paying close attention. It is not uncommon for the SEC and DOJ to conduct "industry sweeps," in which they use actions and fines as a show of force to industries, according to Mike Koehler, another veteran FCPA lawyer who teaches business law at Butler University in Indianapolis. The pharmaceutical industry, for example, is currently under this kind of FCPA scrutiny, according to an announcement by acting deputy Attorney General Gary G. Grindler. The recent action on tobacco "starts to put the FCPA on the radar screen of tobacco companies and others in that industry," Koehler said. Center for Public Integrity Thailand Kyrgyzstan Wed, 11 Aug 2010 04:00:00 GMT http://www.mainjustice.com/2010/08/06/tobacco-companies-plead-guilty-to-bribing-kyrgyz-thai-officials/ http://tobacco.org/news/306060.html Two foreign subsidiaries of Virginia-based Alliance One International Inc. pleaded guilty on Friday to bribing officials in Thailand and Kyrgyzstan to secure contracts and purchase tobacco leaf, the Justice Department said. Alliance One International AG, a Swiss corporation, was charged with conspiracy to violate the Foreign Corrupt Practice Act and violations of the anti-bribery and the books and records provisions of the statute. The Justice Department said the company paid bribes to Thai government officials to land contracts with the Thailand Tobacco Monopoly, which controls cigarette production in the country. Alliance One Tobacco Osh LLC, in Kyrgyzstan, pleaded guilty to similar violations. The company admitted to paying bribes to Kyrgyz officials in connection with its purchase of tobacco in that country. The subsidiaries agreed to pay a combined $9.5 million in fines. Main Justice Brazil Thailand Kyrgyzstan Fri, 06 Aug 2010 04:00:00 GMT http://www.prnewswire.com/news-releases/universal-corporation-settles-fcpa-matter-100129574.html http://tobacco.org/news/305900.html Universal Corporation (NYSE: UVV) announced today that it has finalized agreements with the United States Department of Justice and the U.S. Securities and Exchange Commission resolving the investigations that commenced with the self-reporting by the Company of certain payments to foreign government officials and other individuals in connection with business activities in several countries. The resolution includes aggregate payments to the Department of Justice and the Securities and Exchange Commission of $8.98 million. As previously reported, the Company has already accrued amounts from time to time since the matter arose that are adequate to cover these obligations, so the resolution will not require any charge to fiscal year 2011 financial results. . . . Pursuant to the Company's agreements with the Securities and Exchange Commission, the Company consented to the entry of a final judgment with respect to the Securities and Exchange Commission's investigation. Under the final judgment, the Company is permanently enjoined from violating the anti-bribery, internal controls, and books and records provisions of the Foreign Corrupt Practices Act, and is required to disgorge $4.58 million in profits and prejudgment interest. That amount is included in the $8.98 million in aggregate payments mentioned earlier. In addition, Universal has agreed with the SEC to retain the independent corporate monitor under terms similar to the Company's agreement with the Department of Justice. . . . George C. Freeman, III, Universal's Chairman, President, and Chief Executive Officer, said, "Universal prides itself on conducting business with honesty and integrity. These past payments were -- and are -- contrary to the policies and standards of Universal and its subsidiaries. We have absolutely no tolerance for this type of activity. Our Audit Committee conducted a rigorous and thorough investigation, we voluntarily reported this matter to federal authorities, and we have fully cooperated with federal authorities at each step of the investigation. We have since taken steps to strengthen our culture of ethical and legal compliance, and our efforts are supported by our operations around the world. Our regional management is fully committed to our culture." Since its discovery of the conduct at issue, Universal has instituted remedial efforts PR Newswire Brazil Fri, 06 Aug 2010 04:00:00 GMT http://washingtondc.fbi.gov/dojpressrel/pressrel10/wfo080610.htm http://tobacco.org/news/305899.html Two foreign subsidiaries of Alliance One International Inc., a global tobacco leaf merchant headquartered in Morrisville, N.C., pleaded guilty today to violating various provisions of the Foreign Corrupt Practices Act (FCPA). In a related matter, the Department of Justice filed FCPA charges today against Universal Leaf Tabacos Ltda. (Universal Brazil), a subsidiary of Universal Corporation, which is a Virginia corporation. The resolutions were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride for the Eastern District of Virginia. Alliance One International AG (AOIAG), a Swiss corporation, pleaded guilty in U.S. District Court for the Western District of Virginia in Danville, Va., to a three-count criminal information charging it with conspiring to violate the FCPA, violations of the anti-bribery provisions of the FCPA and violations of the books and records provisions of the FCPA. The charges relate to bribes paid to Thai government officials to secure contracts with the Thailand Tobacco Monopoly, a Thai government agency, for the sale of tobacco leaf. Alliance One Tobacco Osh LLC (AOI-Kyrgyzstan), a Kyrgyzstan corporation, also pleaded guilty today to a separate three-count criminal information charging the corporation with conspiracy to violate the FCPA, violations of the anti-bribery provisions of the FCPA and violations of the books and records provisions of the FCPA relating to bribes paid to Kyrgyzstan government officials in connection with its purchase of Kyrgyz tobacco. . . . According to court documents, from 2000 to 2004, Dimon, Standard and Universal Brazil sold Brazilian-grown tobacco to the Thailand Tobacco Monopoly. Each of the three companies retained sales agents in Thailand, and collaborated through those agents to apportion tobacco sales to the Thailand Tobacco Monopoly among themselves, coordinate their sales prices, and pay kickbacks to officials of the Thailand Tobacco Monopoly . . . In related matters, Alliance One today settled a civil complaint filed by the U.S. Securities and Exchange Commission (SEC), charging Alliance One with violating the FCPA's anti-bribery, internal controls, and books and records provisions in connection with the misconduct described in court documents. Alliance One will disgorge approximately $10 million in profits to the SEC. Also today, Universal Corporation settled a civil complaint filed by the SEC, charging Universal Leaf with violating the FCPA's anti-bribery, internal controls, and books and records provisions in connection with the misconduct described in the court documents. Universal Leaf will disgorge approximately $4.5 million in profits to resolve the civil matter. . . . The Department of Justice and the SEC worked together to reach these global settlements. Federal Bureau of Investigation Brazil Thailand Kyrgyzstan Fri, 06 Aug 2010 04:00:00 GMT http://www.bangkokpost.com/news/local/190021/thai-tobacco-officials-took-b62m-bribes http://tobacco.org/news/305897.html Thailand Tobacco Monopoly officials have been accused of accepting bribes of over US$1.93 million (62 million baht) from US-based companies to ensure Brazilian-grown tobacco was sold locally, says the US Justice Department. The accusations came after two American tobacco companies agreed on Friday to pay nearly US$30 million to settle charges that they bribed foreign officials to get lucrative overseas tobacco sales contracts. Local officials could not be reached for comment yesterday. Bangkok Post webmaster@bangkokpost.co.th Brazil Thailand Sun, 08 Aug 2010 04:00:00 GMT