RJR REPORTS SALES UP FOR QUARTER, LOWERS FULL-YEAR ESTIMATES

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CHICAGO (AdAge.com) -- R.J. Reynolds Tobacco Holdings reported a 9.4% rise in net income for the third quarter to $128 million from $117 million in the year earlier period. Net sales rose to $2.27 billion for the quarter from $2.08 billion last year.

The No. 2 tobacco marketer, behind Philip Morris USA, said it expects full-year net earnings to be between $440 million and $445 million, on the lower end of its July forecast of $440 million to $450 million.

The company's retail share of market remained stable at about 23.3%, with its premium segment leader Camel growing with the help of its menthol line extension Turkish Jade. Winston's share also increased, boosted by its last spring's S2 line extension, which was supported by ads from Gyro Advertising Agency, Philadelphia, with the tagline "No boundaries. No bull."

The company's best-selling discount brand, Doral, saw its market share decline in the third quarter, which RJR attributed to increasing price competition from deep-discounts brands.

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