Reynolds American CEO: Lower Gas Prices 'Good Influence For Our Consumers'

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Reynolds American, Inc. (NYSE: RAI) came out with its fourth-quarter earnings report earlier today, February 10. The company posted an EPS of $0.28 for the quarter, compared to $0.54 it reported for the same quarter last year.

Susan Cameron, CEO at Reynolds American, was on

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CNBC after the result declaration to talk about the impact of higher pricing and lower gas prices on the company’s results.

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How Much Did Pricing Influence Your Results?

“I think Reynolds American had a fantastic fourth quarter and a very strong full year,” Cameron said.“We met consensus. We grew our earnings 7.2 percent, and we saw strong market share growth on all of our key-focus brands.“Certainly

cigarette volumes are declining, as they have been for decades. We saw 2 percent volume decline in the fourth quarter, but as we continue to grow our market share in a very competitive environment, we are very pleased with the balance of share and profit growth.”

Will The Tobacco Industry Continue To See The 3 To 4 Percent Decline In Sales Year-Over-Year?

“We have seen that in quite a few of the past several years. We saw that in ’14, and that’s what we are looking at in ’15 as well,” Cameron replied.

Are You Seeing Lower Gas Prices Impact Consumer Spending?

“We really are a domestic company – a domestic business. We don’t have FX headwinds. And we are seeing that the reduced gas prices, our biggest performing channel by far in the ways of convenience gas, and the convenience gas retailer is talking about seeing a robust sales. So, that is a good influence for our consumers,” Cameron said.