Universal Corporation Reports Improved Annual Results

            Universal Corporation Reports Improved Annual Results

PR Newswire

RICHMOND, Va., May 21, 2013

RICHMOND, Va., May 21, 2013 /PRNewswire/ --

HIGHLIGHTS

Fiscal Year 2013
Diluted earnings per share of $4.66.
Segment operating income up 4%, to $232.8 million.
Revenues flat at $2.5 billion.

Fourth Quarter
Diluted earnings per share of $0.92.
Segment operating income down $2.1 million.
Revenues down 1%, to $645.1 million.

George C. Freeman, III, Chairman, President, and Chief Executive Officer of
Universal Corporation (NYSE: UVV), announced that net income for the fiscal
year ended March 31, 2013, was $132.8 million, or $4.66 per diluted share,
compared with last year's net income of $92.1 million, or $3.25 per diluted
share. The comparison of the current and prior fiscal year is affected by
several unusual items, which are described below, amounting to net pretax
charges of $4.1 million ($0.06 per diluted share), and $40.1 million ($1.42
per diluted share) for fiscal years 2013 and 2012, respectively. Segment
operating income for fiscal year 2013, which excludes those unusual items, was
$232.8 million, up $9.2 million compared with the prior year, as improved
performance in the Company's Other Regions and Other Tobacco Operations
segments was partially offset by a decline in the North America segment.
Revenues for fiscal year 2013 of $2.5 billion were relatively flat compared
with the previous year, on lower volumes at higher average prices.

For the fourth quarter of fiscal year 2013, net income was $26.1 million, or
$0.92 per diluted share, compared to last year's net income of $25.8 million,
or $0.91 per diluted share. Segment operating income for the period was down
$2.1 million compared with the prior year, as lower results in the Other
Regions segment were partly offset by improvements in the North America and
Other Tobacco Operations segments. Revenues for the quarter of $645.1 million
were down about 1% as reduced volumes, primarily in the Other Regions segment,
were nearly offset by higher average leaf prices in many origins and higher
revenues for the North America segment.

The following table sets forth the unusual items included in the annual
results, none of which are included in segment results:

                                                    Fiscal Year Ended

                                                    March 31,
(in millions, except per share amounts)             2013            2012
(Charges) and gains
Charge for European Commission fine in Italy (1)    $      —        $  (49.1)
Restructuring costs (2)                             (4.1)           (11.7)
Gain on fire loss insurance settlement in Europe    —               9.6
(3)
Gain on sale of facility in Brazil (4)              —               11.1
Total effect on operating income                    $      (4.1)    $  (40.1)
Total effect on net income                          $      (1.8)    $  (40.3)
Total effect on diluted earnings per share          $      (0.06)   $  (1.42)

(1)  Fines and accumulated interest from the September 9, 2011, decision by
the General Court of the European Union rejecting an Italian subsidiary's
application to reinstate immunity related to infringements of European Union
antitrust law in the Italian raw tobacco market.

(2)  Restructuring charges, primarily related to workforce reductions in the
United States, South America, Europe, and Africa.

(3)  The fire loss insurance settlement related to a plant fire in Europe in
2010. The operating assets have been replaced.

(4) Sale of land and storage buildings in Brazil in November 2011.



Mr. Freeman stated, "I am proud of the successful results that we achieved in
fiscal year 2013. Despite smaller crops, rising leaf production costs, and
margin pressures in most regions, we delivered better performance than we had
anticipated at the beginning of the fiscal year. Some of this success was
attributable to the sale of previously uncommitted inventories and carryover
shipments of the prior year's large African and South American crops. In
addition, we benefited from lower selling, general, and administrative costs.
Certain of these costs reductions were unpredictable - such as currency
remeasurement and exchange gains - and may not be recurring, while others were
a result of our targeted cost reduction and efficiency improvement efforts.
In fiscal year 2013, we also generated over $230 million in cash flow from our
operations and returned nearly $70 million to our shareholders through a
combination of dividends and share repurchases. In addition to our financial
achievements, our strong local management teams around the globe continued to
advance our goal of providing compliant leaf, produced in a sustainable and
competitive manner, to our customers.

"As we move into fiscal year 2014, we are seeing crop sizes increase in many
of the key sourcing areas for flue-cured and burley tobacco in response to
strong global leaf demand. Sales activity has also been robust, especially
for quality flavor flue-cured styles of tobacco. Burley tobacco remains in
high demand, and current year crop levels are not expected to meet global
requirements. At the same time, our uncommitted inventories are near historic
lows, limiting our ability to glean additional volumes from this source. In
addition to the low uncommitted inventories, we will not have the benefit of
carryover crop shipments which helped our results in the first and second
quarters of fiscal year 2013. While we look forward to another productive
year, total volumes shipped may be lower in fiscal year 2014.

"We remain committed to being a leader in our industry and are excited about
the future. Universal plays a vital role with respect to the global supply of
tobacco, and we have a solid balance sheet that allows us to capitalize on
opportunities to grow our business. We champion programs to address critical
industry issues such as the elimination of child labor and the eradication of
illicit trade in tobacco products. We partner with our suppliers to enhance
their production, ensure compliant leaf, and to support their communities, and
we provide solutions for our contracted farmers through the efforts of our
large team of agronomists and field technicians worldwide. We also actively
work with our longstanding customers to balance tobacco production with their
continued strong demand."

FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS:

Fiscal Year 2013

For the fiscal year ended March 31, 2013, operating income for the flue-cured
and burley leaf tobacco operations, which includes the North America and Other
Regions segments, of $212.3 million, was nearly flat compared to the prior
year's results of $210.7 million. The slight increase reflected improved
operating results for the year in the Other Regions segment, which was mostly
offset by reduced earnings in the North America segment. Sales volumes for
fiscal year 2013 reflected the smaller current crops as well as additional
volumes from carryover shipments from last year's large crops. Those
carryover crops, mainly from South America and Africa, primarily were shipped
in the first half of this year. Revenues for the group were flat, compared
with the prior year, at $2.2 billion.

Operating income for the Other Regions segment of $192.6 million was up 7%,
compared to $180.7 million for the previous year. Benefits from significant
reductions in selling, general, and administrative expenses outweighed the
effects of lower volumes and margins in most origins. The selling, general,
and administrative expense reductions were largely attributable to a decline
in provisions for farmer bad debts, net currency remeasurement and exchange
benefits in Africa, South America and Asia, and lower customer claims in
comparison with the prior year. Revenues for the segment of $1.9 billion
were relatively flat, on lower overall volumes at higher average prices mostly
due to higher green leaf costs.

Operating income for the North America segment declined by $10.3 million to
$19.7 million for fiscal year 2013, compared with the previous year. Despite
higher overall sales volumes and increased processing business, the earnings
decline was influenced by lower margins on higher green leaf costs and higher
overhead allocations. Revenues for the segment of $334.7 million were up 7%
on those higher sales and processing volumes.

Fourth Quarter

Operating income for the quarter ended March 31, 2013, for flue-cured and
burley leaf tobacco operations, was $34.5 million compared with $40.1 million
for the fourth fiscal quarter of the previous year. Earnings improvement in
the North America segment for the quarter was more than offset by the earnings
decline for the Other Regions segment. Revenues for the group declined
slightly to $539.8 million from last year's $548.3 million level on lower
overall volumes.

Operating earnings for the quarter in the Other Regions segment were down 28%
to $24.5 million. Results were heavily influenced by Africa volumes, which
were down substantially in comparison with last year's large crops and
shipments in the fourth quarter. Selling, general, and administrative
expenses for the Other Regions segment were down for the quarter due primarily
to reduced provisions for farmer bad debts and reduced overheads from cost
savings initiatives, offset by unfavorable currency remeasurement and exchange
comparisons to the same period last year. Revenues for the Other Regions
segment were down about 13% to $410.5 million as the effects of the lower
Africa volumes outweighed volume increases in most other origins.

Operating earnings for the North America segment of $10.0 million in the
fourth fiscal quarter were up $3.8 million compared with the same period last
year. This improvement was driven by higher volumes from the larger U.S.
crop, higher processing volumes, and the completion of delayed shipments in
Central America. Revenues for this segment for the fourth quarter were up 65%
to $129.3 million on those increased volumes as well as higher green leaf
prices.

OTHER TOBACCO OPERATIONS:

In the Other Tobacco Operations segment, operating income for fiscal year 2013
improved by $7.6 million to $20.5 million, on a favorable product mix due in
part to stronger wrapper sales in the dark tobacco operations from recovery of
the Indonesian crop shortages. The results for the oriental joint venture
also improved on better margins, as well as lower operating expenses due to a
stronger U.S. dollar and overhead cost reductions. Similarly, the segment
operating results for the fourth quarter increased by $3.6 million to $12.4
million primarily driven by the dark tobacco business improvements.

Revenues for this segment for fiscal year 2013 increased by about 7%, to
$255.1 million, mainly due to increased wrapper volume in the dark tobacco
operations. Revenues for the quarter of $105.3 million were flat, as higher
dark tobacco revenues were offset by a decrease in sales due to the timing of
shipments of oriental tobaccos to the United States compared with the same
period in the previous year.

OTHER ITEMS:

Cost of goods sold of $2.0 billion was up about 1% for the year ended March
31, 2013, and declined by about 1% for the fourth quarter, compared with the
prior year. The changes reflected higher green leaf costs and were consistent
with comparable changes in sales revenues for the relevant periods. Selling,
general, and administrative costs declined by $16.3 million for the year and
$1.8 million for the fourth quarter, compared to the previous year. The full
year decline was driven mainly by benefits from currency remeasurement and
exchange gains in the Other Regions segment, a reduction in provisions for
farmer bad debts, and lower customer claims. The decrease in the fourth
quarter reflected a combination of lower provisions for farmer bad debts,
reduced overhead expenses, and unfavorable variances on currency remeasurement
and exchange gains.

Interest expense was down $0.8 million to $22.0 million for the full year and
$1.2 million to $4.2 million for the fourth quarter ended March 31, 2013,
compared with the same periods in the previous year, primarily due to lower
average borrowing levels as a result of reduced working capital requirements
this year. The consolidated effective income tax rates on pretax earnings were
approximately 32% and 38% for the fiscal years ended March 31, 2013 and 2012,
respectively. Last year's rate was higher because the Company did not record
an income tax benefit on the non-deductible fine portion of the charge for the
European Commission fine and interest in Italy. Without that item, the
effective income tax rate would have been approximately 29%. The effective
income tax rate for the quarter ended March 31, 2013, was 37% compared with
29% for the same period last year. The prior year's rate for the quarter was
reduced by recoveries of state income taxes. The rates in all periods,
excluding adjustments, were lower than the 35% federal statutory rate because
of the effect of changes in exchange rates on deferred income tax assets and
liabilities, as well as lower effective rates on income from certain foreign
subsidiaries.

In September 2011, the Company announced that the General Court of the
European Union issued a decision rejecting the appeal of Deltafina, S.p.A, its
Italian subsidiary. That appeal related to the European Commission's
revocation of Deltafina's immunity from a fine of €30 million (about $41
million on September 9, 2011) assessed against Deltafina and Universal jointly
for actions in connection with Deltafina's purchase and processing of tobacco
in the Italian raw tobacco market between 1995 and 2002. Deltafina appealed
the decision of the General Court to the European Court of Justice. Effective
with the September 9, 2011 General Court decision, the Company recorded a
charge for the full amount of the fine (€30 million) plus accumulated interest
(€5.9 million). The charge totaled $49.1 million at the exchange rate in
effect on the date of the General Court decision. The appeal process is
expected to be concluded during fiscal year 2014.

During the first quarter of fiscal year 2012, an insurance settlement was
received for replacement cost recovery on the factory and equipment destroyed
in a fire at the Company's sheet tobacco operations in Europe in 2010. The
settlement generated a gain of $9.6 million. In the third quarter of fiscal
year 2012, the Company sold land and storage buildings in Brazil in exchange
for other property and $9.4 million in cash. The transaction resulted in a
gain of $11.1 million. Both of these gains are reported in other income in
the consolidated statements of income.

Additional information

Amounts included in the previous discussion are attributable to Universal
Corporation and exclude earnings related to non-controlling interests in
subsidiaries.

This information includes "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. The Company cautions
readers that any statements contained herein regarding earnings and
expectations for its performance are forward-looking statements based upon
management's current knowledge and assumptions about future events, including
anticipated levels of demand for and supply of its products and services;
costs incurred in providing these products and services; timing of shipments
to customers; changes in market structure; government regulation; product
taxation; industry consolidation and evolution; and general economic,
political, market, and weather conditions. Actual results, therefore, could
vary from those expected. A further list and description of these risks,
uncertainties, and other factors can be found in the Company's Annual Report
on Form 10-K for the fiscal year ended March 31, 2012, and in other documents
the Company files with the Securities and Exchange Commission. This
information should be read in conjunction with the Annual Report on Form10-K
for the year ended March31, 2012.

At 5:30 p.m. (Eastern Time) on May 21, 2013, the Company will host a
conference call to discuss these results. Those wishing to listen to the call
may do so by visiting www.universalcorp.com at that time. A replay of the
webcast will be available at that site through August 5, 2013. A taped replay
of the call will be available through June 4, 2013, by dialing (855)
859-2056. The confirmation number to access the replay is 73216156.

Headquartered in Richmond, Virginia, Universal Corporation is the leading
global leaf tobacco supplier and conducts business in more than 30 countries.
Its revenues for the fiscal year ended March 31, 2013, were $2.5 billion. For
more information on Universal Corporation, visit its website at
www.universalcorp.com.



UNIVERSAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(in thousands of dollars, except per share data)


                            Three Months Ended      Fiscal Year Ended

                            March 31,               March 31,
                            2013        2012        2013          2012
Sales and other operating   $ 645,092   $ 653,966   $ 2,461,699   $ 2,446,877
revenues
Costs and expenses
Cost of goods sold          538,195     542,863     1,999,282     1,974,885
Selling, general and        65,889      67,654      235,295       251,639
administrative expenses
Other income                —           —           —             (20,703)
Restructuring costs         426         1,441       4,113         11,661
Charge for European         —           —           —             49,091
Commission fine in Italy
Operating income            40,582      42,008      223,009       180,304
Equity in pretax earnings
of unconsolidated           5,827       5,459       5,635         3,195
affiliates
Interest income             244         74          654           1,314
Interest expense            4,235       5,462       22,013        22,835
Income before income taxes  42,418      42,079      207,285       161,978
and other items
Income taxes                15,733      12,187      66,366        61,159
Net income                  26,685      29,892      140,919       100,819
Less: net income
attributable to             (583)       (4,137)     (8,169)       (8,762)
noncontrolling interests
in subsidiaries
Net income attributable to  26,102      25,755      132,750       92,057
Universal Corporation
Dividends on Universal
Corporation convertible     (3,713)     (3,713)     (14,850)      (14,850)
perpetual preferred stock
Earnings available to
Universal Corporation       $ 22,389    $ 22,042    $ 117,900     $ 77,207
common shareholders
Earnings per share
attributable to Universal
Corporation common

shareholders:
Basic                       $ 0.96      $ 0.95      $ 5.05        $ 3.32
Diluted                     $ 0.92      $ 0.91      $ 4.66        $ 3.25

See accompanying notes.







UNIVERSAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands of dollars)


                                               March 31,      March 31,
                                               2013           2012
ASSETS
Current assets
Cash and cash equivalents                      $  367,864     $  261,699
Accounts receivable, net                       401,747        390,790
Advances to suppliers, net                     132,100        135,317
Accounts receivable—unconsolidated affiliates  555            7,370
Inventories—at lower of cost or market:
Tobacco                                        623,377        682,095
Other                                          57,745         53,197
Prepaid income taxes                           6,245          20,819
Deferred income taxes                          32,127         51,025
Other current assets                           124,213        88,317
Total current assets                           1,745,973      1,690,629
Property, plant and equipment
Land                                           17,125         17,087
Buildings                                      234,694        228,982
Machinery and equipment                        545,478        537,031
                                               797,297        783,100
Less: accumulated depreciation                 (509,829)      (479,908)
                                               287,468        303,192
Other assets
Goodwill and other intangibles                 99,048         99,266
Investments in unconsolidated affiliates       94,405         93,312
Deferred income taxes                          23,783         23,634
Other noncurrent assets                        55,478         56,886
                                               272,714        273,098
Total assets                                   $  2,306,155   $  2,266,919



See accompanying notes.







UNIVERSAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands of dollars)


                                                  March 31,      March 31,
                                                  2013           2012
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Notes payable and overdrafts                      $  105,318     $  128,016
Accounts payable and accrued expenses             225,648        187,790
Accounts payable—unconsolidated affiliates        4,739          295
Customer advances and deposits                    24,914         16,832
Accrued compensation                              36,694         30,659
Income taxes payable                              14,034         12,866
Current portion of long-term obligations          211,250        16,250
Total current liabilities                         622,597        392,708
Long-term obligations                             181,250        392,500
Pensions and other postretirement benefits        135,629        140,529
Other long-term liabilities                       36,838         90,609
Deferred income taxes                             42,184         44,583
Total liabilities                                 1,018,498      1,060,929
Shareholders' equity
Universal Corporation:
Preferred stock:
Series A Junior Participating Preferred Stock,
no par value,
                                                  —              —
 500,000 shares authorized, none issued or
outstanding
Series B 6.75% Convertible Perpetual Preferred
Stock,

 no par value, 220,000 shares authorized,        213,023        213,023
219,999 shares

 issued and outstanding (219,999 at March 31,
2012)
Common stock, no par value, 100,000,000 shares
authorized,

 23,343,973 shares issued and outstanding        202,579        196,135
(23,257,175 at

 March 31, 2012)
Retained earnings                                 918,509        854,654
Accumulated other comprehensive loss              (75,540)       (80,361)
Total Universal Corporation shareholders' equity  1,258,571      1,183,451
Noncontrolling interests in subsidiaries          29,086         22,539
Total shareholders' equity                        1,287,657      1,205,990
Total liabilities and shareholders' equity        $  2,306,155   $  2,266,919



See accompanying notes.



UNIVERSAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of dollars)


                                                  Fiscal Year Ended March 31,
                                                  2013             2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                        $      140,919   $  100,819
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation                                      43,408           42,158
Amortization                                      1,708            1,708
Provision for losses on advances and guaranteed   1,623            11,930
loans to suppliers
Inventory write-downs                             1,523            8,324
Stock-based compensation expense                  6,171            5,987
Foreign currency remeasurement loss (gain), net   (10,579)         2,253
Deferred income taxes                             11,794           6,770
Equity in net loss (income) of unconsolidated     (4,966)          14,658
affiliates, net of dividends
Gain on fire loss insurance settlement            —                (9,592)
Gain on sales of property in Brazil               —                (11,111)
Restructuring costs                               4,113            11,661
Charge for European Commission fine in Italy      —                49,091
Other, net                                        (1,174)          1,719
Changes in operating assets and liabilities, net  39,926           (36,589)
Net cash provided by operating activities         234,466          199,786
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment         (30,783)         (38,174)
Proceeds from sale of property, plant and         3,534            18,366
equipment
Proceeds from fire loss insurance settlement      —                9,933
Other                                             1,004            —
Net cash used by investing activities             (26,245)         (9,875)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of short-term debt, net                 (18,374)         (17,388)
Issuance of long-term obligations                 —                100,000
Repayment of long-term obligations                (16,250)         (96,250)
Dividends paid to noncontrolling interests        (1,957)          (103)
Issuance of common stock                          3,949            134
Repurchase of common stock                        (8,481)          (4,004)
Dividends paid on convertible perpetual           (14,850)         (14,850)
preferred stock
Dividends paid on common stock                    (45,996)         (44,711)
Proceeds from termination of interest rate swap   —                13,388
agreements
Debt issuance cost and other                      —                (3,539)
Net cash used by financing activities             (101,959)        (67,323)
Effect of exchange rate changes on cash           (97)             (1,896)
Net increase in cash and cash equivalents         106,165          120,692
Cash and cash equivalents at beginning of year    261,699          141,007
Cash and cash equivalents at end of year          $      367,864   $  261,699



See accompanying notes.

NOTE 1. BASIS OF PRESENTATION

Universal Corporation, with its subsidiaries ("Universal" or the "Company"),
is the leading global leaf tobacco supplier. Because of the seasonal nature of
the Company's business, the results of operations for any fiscal quarter will
not necessarily be indicative of results to be expected for other quarters or
a full fiscal year. All adjustments necessary to state fairly the results for
the period have been included and were of a normal recurring nature. These
financial statements should be read in conjunction with the financial
statements and notes thereto included in the Company's Annual Report on Form
10-K for the fiscal year ended March 31, 2012.

NOTE 2.EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings
per share:

                                   Three Months Ended    Fiscal Year Ended

                                   March 31,             March 31,
(in thousands, except per share    2013       2012       2013        2012
data)
Basic Earnings Per Share
Numerator for basic earnings per
share
Net income attributable to         $ 26,102   $ 25,755   $ 132,750   $ 92,057
Universal Corporation
Less: Dividends on convertible    (3,713)    (3,713)    (14,850)    (14,850)
perpetual preferred stock
Earnings available to Universal
Corporation common shareholders
for                                $ 22,389   $ 22,042   $ 117,900   $ 77,207

 calculation of basic earnings
per share
Denominator for basic earnings
per share
Weighted average shares            23,336     23,251     23,355      23,228
outstanding
Basic earnings per share          $ 0.96     $ 0.95     $ 5.05      $ 3.32
Diluted Earnings Per Share
Numerator for diluted earnings
per share
Earnings available to Universal    $ 22,389   $ 22,042   $ 117,900   $ 77,207
Corporation common shareholders
Add: Dividends on convertible
perpetual preferred stock (if
conversion                         3,713      3,713      14,850      14,850

 assumed)
Earnings available to Universal
Corporation common shareholders
for                                $ 26,102   $ 25,755   $ 132,750   $ 92,057

 calculation of diluted earnings
per share
Denominator for diluted earnings
per share
Weighted average shares            23,336     23,251     23,355      23,228
outstanding
Effect of dilutive securities (if
conversion or exercise assumed)
Convertible perpetual preferred    4,806      4,782      4,797       4,772
stock
Employee share-based awards        361        397        326         339
Denominator for diluted earnings   28,503     28,430     28,478      28,339
per share
Diluted earnings per share         $ 0.92     $ 0.91     $ 4.66      $ 3.25



NOTE 3. SEGMENT INFORMATION

The principal approach used by management to evaluate the Company's
performance is by geographic region, although the dark air-cured and oriental
tobacco businesses are each evaluated on the basis of their worldwide
operations. The Company evaluates the performance of its segments based on
operating income after allocated overhead expenses (excluding significant
non-recurring charges or credits), plus equity in the pretax earnings of
unconsolidated affiliates.

Operating results for the Company's reportable segments for each period
presented in the consolidated statements of income were as follows:

                            Three Months Ended      Fiscal Year Ended

                            March 31,               March 31,
(in thousands of dollars)   2013        2012        2013          2012
SALES AND OTHER OPERATING
REVENUES
Flue-cured and burley leaf
tobacco operations:
North America               $ 129,299   $ 78,147    $ 334,676     $ 314,248
Other regions ^ (1)         410,463     470,113     1,871,880     1,893,388
Subtotal                    539,762     548,260     2,206,556     2,207,636
Other tobacco operations ^  105,330     105,706     255,143       239,241
(2)
Consolidated sales and      $ 645,092   $ 653,966   $ 2,461,699   $ 2,446,877
other operating revenues
OPERATING INCOME
Flue-cured and burley leaf
tobacco operations:
North America               $ 9,976     $ 6,173     $ 19,740      $ 30,037
Other regions ^ (1)         24,488      33,938      192,556       180,670
Subtotal                    34,464      40,111      212,296       210,707
Other tobacco operations ^  12,371      8,797       20,461        12,841
(2)
Segment operating income    46,835      48,908      232,757       223,548
Deduct: Equity in pretax
earnings of unconsolidated  (5,827)     (5,459)     (5,635)       (3,195)
affiliates^(3)
Restructuring costs^(4)     (426)       (1,441)     (4,113)       (11,661)
Charge for European fine    —           —           —             (49,091)
in Italy^(4)
Add: Other income ^ (4)     —           —           —             20,703
Consolidated operating      $ 40,582    $ 42,008    $ 223,009     $ 180,304
income



(1) Includes South America, Africa, Europe, and Asia regions, as well as
inter-region eliminations.

(2) Includes Dark Air-Cured, Special Services, and Oriental, as well as
inter-company eliminations. Sales and other operating revenues for this
reportable segment include limited amounts for Oriental because its financial
results consist principally of equity in the pretax earnings of an
unconsolidated affiliate.

(3) Item is included in segment operating income, but is not included in
consolidated operating income.

(4) Item is not included in segment operating income, but is included in
consolidated operating income.

SOURCE Universal Corporation

Website: http://www.universalcorp.com
Contact: Candace C. Formacek, Phone: (804) 359-9311, Fax: (804) 254-3584,
Email: investor@universalleaf.com
 
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