Author: Staff Writer

Filtrona Filter Products has implemented a global machine strategy to optimise its machine technologies through upgrades and investment in new state-of-the-art machinery.

The global strategy has been introduced following a comprehensive analysis of market trends and a review of the company’s machine technologies, encompassing hundreds of machines across nine production sites.

“In an increasingly dynamic market, it is essential that we have the production capabilities and capacity to not only meet the current needs of our customers but also their future requirements,” said global operations director, Martin Dudley.

‘In recent years, the tobacco market has seen an increased focus on quality which has led many customers to tighten their quality and functional tolerances,’ the company said in a press note.

‘This trend is set to continue alongside a move towards smaller quantity orders across a wider range of specifications…

‘As part of the strategy, Filtrona has enhanced its capability to produce innovative special filters by investing in a number of leading machine technologies. It has also implemented a programme to upgrade existing machines, where specifications require it, with modern high-speed machines featuring enhanced automation and process control.

‘New machinery recently introduced covers the production of conventional, dual and innovatively designed filters, including high-speed flexible dual and triple combining machines, high-speed machinery for Sensation™ filters, new machinery to produce special filters (including Shaped Acetate & ROA), and state-of-the-art on-line filter rod quality inspection equipment.’

The global machine strategy builds on the foundations of Filtrona’s continuous improvement programme, which was introduced in 2005 to encourage employees to submit improvement suggestions and share best-practice techniques.

Japan Tobacco International (JTI) has donated US$25,000 to Thanh Nien News’ medical program to provide 650 cataract operations for underprivileged elderly people in the Cuu Long (Mekong) Delta of Vietnam, according to a Vietnam News story.

A representative of Thanh Nien News said JTI’s contribution would help improve the living conditions of elderly people in the region.

The program, which will be implemented in Kien Giang, Long An and Hau Giang provinces, will be completed by the end of this year.

Imperial Tobacco says that it has taken on 30 graduates – its biggest such intake to date –as part of a strategy to invest in its ‘talent pipeline’.

‘The newcomers on our 2012 Graduate Programme will gain experience of different areas of the business across the globe in the next two years,’ the company said in a note posted on its website.

‘Imperial’s Graduate Programme has grown from the first intake of just six graduates back in 2010.

‘The current intake attended an intensive induction course to learn about the history, structure, strategy and business of Imperial.

‘This included an evening event inBristolhosted by Alison Cooper [chief executive] and members of the Operating Executive.’

“Our success in the future will depend on the quality of the people we attract now,” said Koos Mennen, director of organisation and people development.

“We are committed to further investment in these programs and providing all our graduates with opportunities to grow and develop.”

Rafaelis Cigars, of Los Angeles, California, is offering to Donate $5 to the American Red Cross for every box of cigars it sells.

The money will go towards aid for the victims of Hurricane Sandy.

Rafaelis sells boxes of 50 Churchill, Toro or Robusto cigars, each size in either natural (Sumatra) or dark (maduro) format.

Australia’s Greens have blasted theNew South Wales government for investing almost $30 million in the tobacco industry, according to an Australian Associated Press story.

The Greens say the state should come clean on all of its investments.

On Tuesday, NSW Treasurer, Mike Baird, revealed the government had invested $28.7 million in tobacco companies through two trusts.

Baird provided the figures in an answer to a budget estimates question asked by NSW Greens MP, John Kaye.

It was the first time the state government had identified its tobacco investments.

The Greens have hinted that the NSW government could be trying to hide other investments because it provided information about only two of the state’s 12 trusts.

But the government has announced it will review its tobacco investments and make a decision on their future by the end of the year.

Meanwhile, the state ofVictoriais proving more robust in the face of criticisms over investments, according to a story in the Age relayed by the TMA.

Malcolm Ashbolt, head of client services for the Victorian Funds Management Corp (VFMC), which manages investments for public sector organizations inVictoria, said that though VFMC no longer invested in cluster munitions, it had no intention of divesting its tobacco holdings, which were worth about A$117 million; or 0.3 per cent of its total investments of A$37.9 billion.

The Indian government has yet to approve a proposal recommended by the Tobacco Board under which flue-cured production would be phased out on 4,500 acres, according to a story in the Hindu.

A board official was quoted as saying that the Ministry of Health would need to announce a financial package for funding the pilot project since it was the key agency in respect of the implementation of the World Health Organization’s Framework Convention on Tobacco Control.

The official said the board was promoting alternative crops but that it was not possible to phase out tobacco cultivation without the support of the government.

The board has responsibility only for flue-cured production.

Under the proposal, in Andhra Pradesh and Karnataka, where the pilot scheme would be implemented, 2,500 tobacco farmers affected by the phase-out would be given a one-time compensation of between Rs250,000 and Rs450,000 each for surrendering their licenses and barns to the board.

In all, the proposal requires the government to allocate Rs1.25 billion for compensating the farmers.

Imperial Tobacco’s Spanish employees have collected more than 4,500 kg of food to help alleviate hunger amongst the poor.

The Altadis Foundation made an appeal for contributions for a third successive year to coincide with World Food Day on October 16.

Items were donated for ‘Operación Kilos’ by employees at the company’s sites inMadrid, Logroño,Santanderand theCanary Islands.

The food will go to support those struggling to feed themselves acrossSpain, where unemployment has reached 25 per cent.

“The basic needs of the population have increased considerably due to the economic crisis we are suffering here inSpain– that’s why our help is even more important,” said Fernando Domínguez, chairman of the Foundation and premium cigar director.

And Miguel Angel Martin Esteban, Foundation board member and communications manager forSpain, added that he was especially proud that, this year, twice as much food had been collected as was collected last year.

Lorillard’s president and CEO, Murray S. Kessler, and CFO, David H. Taylor, are due to participate in the Morgan Stanley Global Consumer & Retail Conference inNew York,NY, from 14.10 hours to 14.45 hours Eastern Time on November 13.

Their presentation will be webcast at the Investor Relations section of www.lorillard.com.

The presentation will be available in an archived format for 30 days following the event.

Universal Corporation’s net income for the first half of fiscal year 2013, which ended on September 30, was $71.1 million, or $2.50 per diluted share: significantly higher than its net income during the first half of last year, $7.8 million, or $0.02 per diluted share.

The comparison of the current and prior year six-month periods is affected by several unusual items, which amount to net pre-tax charges of $3.7 million ($0.05 per diluted share) for the first six months of fiscal year 2013, and $49.3 million ($1.90 per diluted share) for the same period of last year.

Meanwhile, for the three months ended September 30, net income of $48.0 million, or $1.68 per diluted share, which included restructuring costs totaling $3.7 million ($0.05 per diluted share), compared with a net loss for the second quarter of last year of $8.0 million, or $0.51 per diluted share, which included unusual items amounting to a net pre-tax charge of $52.1 million ($1.93 per diluted share).

“Our results have been good for the first half of the fiscal year, but they were heavily influenced by the effects of shipment timing,” said chairman, president and CEO, George C. Freeman, III.

“We saw carryover sales from last year’s large African crops in this fiscal year’s first quarter and accelerated shipments fromSouth Americaand other origins in the second quarter.

“During the same period last fiscal year, shipments began later inBrazilandAfricadue to a slow start to the season caused by oversupplied markets.

“Although production of flue-cured and Burley tobacco outside ofChinais down, our leaf volumes shipped during the first six months are comparable to last year’s levels. Our uncommitted stocks have also been reduced to very low levels, and we do not anticipate shipment volumes in the second half of the fiscal year to be equivalent to those of the previous fiscal year.

“Beyond that caveat, I am pleased with the recovery in leaf tobacco and with our company’s performance in these transitional markets.

“Looking forward, we expect market conditions to improve, and we are anticipating larger crops in several key origins where production has not met demand this year.

“Our continued successful management of our cash flow and uncommitted inventories has allowed us to maintain our strong balance sheet and financial flexibility, which we view as a competitive advantage. It also enables us to continue rewarding our shareholders, as we have done with our 42nd consecutive annual dividend increase announced today.”