BAT earnings helped by currency gains
LONDON (Reuters) - British American Tobacco reported a 20 percent rise in first-half earnings on Thursday, boosted by foreign exchange gains and timing of shipments which it said would reverse in the third-quarter.
London-based BAT, which makes Lucky Strike, Kent, Dunhill and Pall Mall cigarettes, posted adjusted earnings per share of 49.11 pence ($0.90) for the first six months of 2006 on Thursday, ahead of analysts forecasts of 46.1-46.6p.
The world's number-two cigarette company after Altria's Philip Morris said its like-for-like volumes grew 3 percent in the first half, after a 3 percent rise in the first quarter and 2 percent for full-year 2005.
"The results for the first six months have, however, been flattered by significant foreign exchange gains, which are unlikely to continue, as well as by the timing of shipments in some major markets which will inevitably reverse during the third quarter," said Chairman Jan du Plessis in a statement.
BAT added that its wholly owned subsidiary in Chile intends to acquire the 29.63 percent of the shares in Chiletabacos SA that BAT does not already own, valuing this minority stake at around 104 million pounds.
BAT shares have outperformed the FTSE 100 index by 5 percent this year and closed at 14.28 pounds on Wednesday.
The half-year dividend was raised 12 percent to 15.7p.
