Universal results improved

Universal Corporation’s results were improved due to strong sales volumes, in part because of higher carryover sales and higher African Burley production volumes, said chairman, president, and CEO George C. Freeman III in announcing yesterday the company’s half-year results to the end of September.
“We have completed a significant portion of our crop purchases for the fiscal year,” Freeman was quoted as saying. “Burley production volumes are up in Africa, and crops outside of the United States are coming in as expected.
“Hurricane Florence caused significant damage to the United States’ flue-cured tobacco crop during the second fiscal quarter. The most severely hit area was eastern North Carolina where we estimate up to half of the crop was still in the fields and most of that remaining crop was destroyed.
“However, our farmer base is largely located outside of what was the storm’s direct path, which should mitigate the impact on our results in the second half of the fiscal year.
“Despite the recent supply disruptions in the United States, we believe that we are on track for a strong year with volumes above those of last year. Customer demand has exceeded our expectations in certain origins, and we believe some customers are capitalizing on attractive buying opportunities that we have been able to offer due to our strong market position and efficient operations.
“Our uncommitted inventories remain within our target range at levels lower than those of the previous fiscal year at this time.”
Freeman went on to say that Universal was exploring opportunities to expand its services in its core tobacco business, while exploring also growth opportunities outside that business, leveraging its strengths and expertise.
Universal reported net income for the first half of fiscal year 2019 of $44.6 million, or $1.76 per diluted share, which was increased from $29.7 million, or $1.16 per diluted share during the same period of the previous fiscal year. The first half of fiscal year 2019 was said to have included non-recurring tax benefits that reduced income taxes and increased net income by $7.8 million, or $0.30 per diluted share.
Operating income of $62.7 million for the six months to the end of September 30 was said to have been increased by $11.6 million or 23 percent on that of the six months to the end of September 30, 2017, $51.2 million.