Reynolds American Inc.'s fourth-quarter profit more than doubled to $292 million as higher prices and lower legal expenses offset a decline in cigarette sales, and it benefited from the year-ago comparison. The maker of Camel, Pall Mall cigarettes and Natural American Spirit cigarettes said revenue excluding excise taxes fell about 2 percent to $2.04 billion.
The number of cigarettes sold by its R.J. Reynolds Tobacco subsidiary fell about 9 percent during the quarter to 15.6 billion. Volumes for Pall Mall fell more than 6 percent and volumes for Camel fell 3.5 percent. Both brands gained market share.
SMOKELESS TOBACCO: Volume for its smokeless tobacco brands including Grizzly and Kodiak rose about 8 percent compared with a year ago. The brands had a 33.3 percent share of the U.S. retail market, which is tiny compared with cigarettes.

Reynolds American Inc (RAI): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

Reynolds' fourth-quarter 2013 earnings of $0.77 per share lagged the Zacks Consensus Estimate by 5.2% but increased 1.3% year over year. Profit improved on the back of higher cigarette and moist snuff pricing. Net sales however slipped 1.9% due to declining cigarette volumes. However, core brands like Camel, Pall Mall and Santa Fe gained market share backed by brand-building initiatives. Reynolds' continuous innovations in the smokeless and moist snuff products are helping it to maintain a dominant share in the smokeless category. Moreover, the company's advancement in the e-cigarette category with the Vuse brand is encouraging. However, the high excise tax imposed by governments around the world is pressuring the company's margins. Additionally, anti-smoking regulations remain a persistent overhang. Again the tobacco sector is facing declining volume for the past few quarters due to shift of demand from cigarettes to other non-tobacco products. We, therefore, prefer to stay on the sidelines

Overview: Headquartered in Winston-Salem, North Carolina, Reynolds American, producer of Camel cigarettes , Inc. (RAI) came into existence in 2004. Its subsidiaries include R. J. Reynolds Tobacco Company (RJR), American Snuff Company, LLC, Santa Fe Natural Tobacco Company, Inc. and Niconovum AB.
In Jul 2004, the U.S. business of Brown & Williamson Holdings, Inc. (B&W), an indirect, wholly owned subsidiary of British American Tobacco plc was combined with R. J. Reynolds Tobacco Company (RJR). This merger is generally referred to as the B&W business combination. Post the merger, B&W owns approximately 42% of Reynolds' outstanding common stock.
Reynolds' reportable segments comprise of RJR Tobacco, American Snuff and Santa Fe and All Other.
RJR Tobacco is a leading cigarette manufacturer, which operates mainly in the U.S. Its manufacturing facilities are located in the Winston-Salem area, known as the Tobaccoville manufacturing facility and the Whitaker Park complex. RJR Tobacco's largest selling cigarette brands Camel, Kool, Pall Mall, Doral and Winston are some of the best-selling cigarette brands in the U.S. RJR Tobacco also manages contract manufacturing of cigarette and tobacco products.
American Snuff is a leading smokeless tobacco product manufacturer in the U.S. It includes the primary operations of American Snuff Company, whose main products are its largest-selling moist snuff brands, Grizzly and Kodiak, Its manufacturing facilities are located in Memphis, Tennessee Clarksville, Tennessee Winston-Salem and Bowling Green, Kentucky. The American Snuff Company also makes loose-leaf tobacco (including Morgan's, Levi Garrett and Taylor's Pride brands), snuff (Garrett, Dental and Tube Rose brands) and an assortment of other smokeless tobacco products (including twist, moist and plug).
Santa Fe manufactures and markets cigarettes as well as other tobacco products under the Natural American Spirit brand. Its manufacturing facility is located in Oxford, North Carolina and its leased distribution center is located in Reno, Nevada.
Other segment describes the business of Reynolds subsidiary, Niconovum USA, which is a marketer of nicotine replacement therapy products in Sweden under the Zonnic brand name

Pot Smokers Perform Better Academically Than Cigarette Users

Here's some promising news for learning cannabis lovers. Scientists from the University of Toronto's Dalla Lana School of public health have reviewed reports from a study that involved 39,000 Ontario students from 1981 to 2011. The studies show that straight up pot smokers perform better in school than cigarette smokers and those who smoke both substances. Not only that, but less kids are smoking tobacco now than 30 years ago.

The Centre for Addiction and Mental Health asked students in Grades 7, 9 and 11 about their tobacco and marijuana use, and their academic performance. The study found that marijuana-only users did better at school than their counterparts who smoked only cigarettes or who smoked both cigarettes and marijuana. However, the findings reflect the fact that fewer students smoke tobacco today compared to 30 years ago, and those that do make up a very “marginalized, vulnerable” population, says lead study author Michael Chaiton, assistant professor in epidemiology and public health policy.

Logically, students that don't part take in the wacky tobaccy do better, according to Chaiton.

“Now there is a distinction between marijuana use and co-use with other substances, and it’s an indication of the changing social norms. So it’s not an absolute that they do better; it’s that social norms have changed and the population of people who use marijuana are more like the general population.”

Sometimes it's like everything from Cheech and Chong's Big Bambu album is coming true.