Japan Tobacco Rises After Profit Beats Analyst Estimates

Japan Tobacco Inc. (2914), the world’s third-largest publicly traded cigarette maker, rose in Tokyo trading after the company’s full-year profit beat analyst estimates because of higher overseas prices.

Japan Tobacco gained 3.3 percent, the most since May 2, to 326,500 yen at the 3 p.m. close on the Tokyo Stock Exchange. The benchmark Nikkei 225 Stock Average dropped 0.7 percent.

The company, which sells cigarette brands including Winston and LD, raised prices in markets including Russia and Turkey last fiscal year. Overseas sales of Japan Tobacco’s eight main brands jumped 2.7 percent, it said yesterday.

Net income rose 4.7 percent to 145 billion yen ($1.8 billion) for the year ended March 31, the Tokyo-based company said yesterday. That was more than the 128 billion yen average of three analyst estimates compiled by Bloomberg in the past four weeks. Sales rose 1 percent to 6.19 trillion yen.

Japan’s record 9-magnitude earthquake in March damaged the cigarette maker’s factories, forcing it to suspend all domestic shipments of cigarettes for 12 days through April 10. Japan Tobacco has resumed deliveries of 25 items and plans to add 11 next month.

The company plans to scrap 23 of its 96 cigarette products, including Cherry and Camel Mild Box, by early August, Japan Tobacco said yesterday.