STAMFORD, Conn. -- UST Inc., which makes smokeless tobacco products and produces wine, said Wednesday it will focus on its new products, a share repurchase program and cost cutting in 2008, according to an Associated Press report.
The company reaffirmed it expects earnings between $3.22 and $3.26 per share for 2007, or between $3.40 to $3.44 per share, excluding one-time items. The company will take a $9 million charge in the fourth quarter to resolve costs related to derivative litigation.
In 2008, UST expects earnings between $3.60 [image-nocss] and $3.70 per share, while analysts expect a profit of $3.70 per share.
UST said it will focus on building its Skoal Edge Wintergreen smokeless tobacco and its Horse Heaven Hills wines from Columbia Crest brands.
UST added it will make up to $300 million in share repurchases during the year if conditions allow.
It will also increase its 2008 dividend by 5% to $2.52 per share.
In October, UST reported third-quarter profit rose 13% due to greater demand and savings programs.
Stamford, Conn.-based UST Inc. is a holding company for its principal subsidiaries: U.S. Smokeless Tobacco Co. and Ste. Michelle Wine Estates. U.S. Smokeless Tobacco Co. is a leading producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Red Seal and Husky. Ste. Michelle Wine Estates produces and markets premium wines sold nationally under 15 different labels including Chateau Ste. Michelle, Columbia Crest, Stag's Leap Wine Cellars and Erath, as well as distributes and markets Antinori products in the United States.
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