Leaf volumes increased

Universal Corporation yesterday reported that its net income for the nine months to the end of December, at $73.4 million, or $2.63 per diluted share, was up from $61.1 million, or $2.18 per diluted share for the nine months to the end of December 2015.

At the same time, operating income was increased by $17.3 million to $118.5 million.

For the third quarter to the end of December, net income, at $53.6 million, or $1.92 per diluted share, was increased from that of the third quarter to the end of December 2015, $44.5 million, or $1.60 per diluted share.

Operating income for the third quarter was up by $14.0 million to $83.2 million.

Segment operating income for the nine months’ periods under review was up by $25.3 million to $128.0 million, while that for the three months’ periods was up by $19.7 million to $87.9 million.

Consolidated revenues for the nine months’ periods under review increased by $104.8 million to $1.4 billion, while those for the three months’ periods rose by $84.2 million to $668.8 million.

“We are pleased with the performance of our operations thus far this fiscal year, particularly in light of difficult supply conditions, including the weather-related crop reduction in Brazil,” said George C. Freeman, III, chairman, president, and CEO, in presenting the results.

“Despite these headwinds, we have been able to secure some additional sales which have helped to increase our volumes handled so far this fiscal year.

“In addition, our third fiscal quarter this year benefited from higher volumes mainly due to earlier shipping patterns than those of the prior year.

“We expect our volumes for the fourth quarter of fiscal year 2017 to be lower than those achieved in the fourth quarter of the prior year, given our reduced buying program in Brazil this fiscal year, and some earlier shipments from other origins. Last fiscal year’s fourth quarter volumes were exceptionally strong for us and included significant volumes from Brazil.

“However, we now believe our total lamina volumes for fiscal year 2017 will be only modestly lower than those volumes in fiscal year 2016.”