December 17, 1997 |
RJR Nabisco Holdings Corp. said the company's international tobacco business will lay off 2,600 employees--14% of its foreign work force--in a major restructuring that will also include a $310-million charge against fourth-quarter earnings. Company officials said the job cutbacks will enhance RJR's competitive position in the increasingly important international tobacco arena and improve its long-term earnings growth prospects.
November 22, 1997 |
A top food industry executive credited with reinvigorating brands such as Oscar Mayer, Jell-O and Kool-Aid while dumping underachievers at Philip Morris Cos. has been recruited to lead Nabisco Holdings Corp. out of its doldrums. Nabisco shares soared 9% Friday after the surprise announcement that James Kilts had been named to succeed H. John Greeniaus as chief executive. Nabisco rose $3.88 a share to close at $46.88 on the New York Stock Exchange.
October 9, 1997 |
An 83% majority of tobacco shareholders expect Congress to enact into law next year a settlement of health-related lawsuits against cigarette companies, according to a survey by Sanford C. Bernstein & Co. analyst Gary Black. The investment research firm surveyed 62 institutional investors in Philip Morris Cos. and RJR Nabisco Holdings Corp., the two largest U.S. tobacco companies. Results showed that about 10% said that cigarette makers should walk away from the accord.
September 3, 1997 |
Philip Morris Cos. and RJR Nabisco Holdings Corp. have boosted wholesale cigarette prices an average of 7.6% as they seek billions of dollars to settle health-related lawsuits. Retail prices in turn have increased about 7 cents to an average of $1.87 a pack, analysts said they were told by the companies. Loews Corp., BAT Industries' Brown & Williamson and Brooke Group Ltd.'s Liggett also raised their prices, analysts said. The increase, the largest since March 1993, will generate about $1.
August 23, 1997 |
The head of RJR Nabisco Holdings Corp. said Friday that he intends to warn people in Third World countries of the dangers of smoking, even where warnings are not mandatory. Indeed, RJR is already doing that in many such countries, a company spokesman said. RJR chief Steven F. Goldstone joined a growing number of tobacco executives who have testified that cigarettes may be linked to cancer. "I have always believed that smoking plays a part in causing lung cancer.
July 23, 1997 |
Philip Morris Cos. and RJR Nabisco Holdings Corp. on Tuesday said second-quarter profits surged on strong international sales as the industry nears a $368.5-billion tobacco settlement that is expected to weaken U.S. sales. Philip Morris, the world's largest cigarette maker, said net income rose 13% to $1.84 billion, or 76 cents a share. RJR's profit from operations rose 11% to $242 million, or 71 cents. The results matched analyst estimates.
April 24, 1997 |
The Pennsylvania attorney general filed a lawsuit in Harrisburg against Philip Morris Cos., RJR Nabisco Holdings Corp. and other cigarette producers, making it the 25th state to sue the tobacco industry for the costs of treating sick smokers. Atty. Gen. Mike Fisher, who said Pennsylvania's claim could exceed $1 billion, also is charging the cigarette makers with enticing children to smoke. RJR and Philip Morris could not be immediately reached for comment.
April 17, 1997 |
The tobacco industry is such a hugely profitable business that it could easily afford a settlement of health-related liability claims far exceeding even the $300-billion figure being suggested as part of the talks that were disclosed Wednesday. The very news that Philip Morris Cos. and RJR Nabisco Holdings Corp. had begun talks with state attorneys general and plaintiffs lawyers sent their stock prices soaring more than 10%.