R.J. Reynolds Posts Loss on Write-Downs

R.J. Reynolds Tobacco Holdings Inc., the second-biggest U.S. cigarette maker, had a first-quarter loss because of a decline in the value of some trademarks acquired during its leveraged buyout.

The loss of $335 million, or $3.58 a share, contrasted with net income of $100 million, or 98 cents, a year earlier, the maker of Camel and Winston cigarettes said. Write-downs for the trademarks because of an accounting change boosted expenses by $502 million, or $5.37 a share. Revenue increased 4% to $1.52 billion.

Some of R.J. Reynolds’ brands, such as Winston, have lost value since a leveraged buyout of RJR Nabisco Holdings Corp. by Kohlberg Kravis Roberts & Co. in 1989. Excluding the cost of writing down the brands, R.J. Reynolds would have had a profit of $167 million, or $1.79 a share, beating estimates.

Shares of Winston-Salem, N.C.-based R.J. Reynolds rose 62 cents to $67.60 on the NYSE.