TOKYO -Japan Tobacco Inc. (2914.TO) said its net profit for the fiscal third quarter declined 34% on year, 
blaming foreign exchange factors and a slump in domestic demand.
The world’s third-largest tobacco company by sales volume after Philip Morris International Inc. and British American Tobacco PLC, had a net profit Y40.86 billion in the October-December quarter, compared with a Y61.97 billion profit in the same period a year earlier.
The company, commonly known as JT, suffered a 14% decline in revenue to Y1.598 trillion from Y1.849 trillion, while operating profit amounted to Y88.82 billion, down 29%.
JT cited foreign exchange factors as dragging down tobacco sales overseas. These factors took two forms–weakness in local currencies, such as Russia’s, against the dollar; and the yen’s strength. JT uses the U.S. currency when booking overseas sales, and then translates the figure into the Japanese currency.
As a result, JT’s overseas tobacco sales tumbled 22% to Y700.84 billion in the latest reporting quarter. Meanwhile, continued weakness in sales in Japan as the smoking population declines led to a 4.7% fall in sales to Y777.26 billion.
For this fiscal year ending March 31, 2010, the company raised its net profit outlook to Y122 billion from Y108 billion, partly because of proceeds from real estate assets. Revenue is expected to reach Y6.130 trillion, compared with Y6.090 trillion in its previous outlook in October.
JT’s earnings are based on Japanese accounting standards.
By Hiroyuki Kachi, Dow Jones Newswires
FEBRUARY 9, 2010
Tobacco is an annual or bi-annual growing 1-3 meters tall with large sticky leaves that contain nicotine. Native to the Americas, tobacco has a long history of use as a shamanic inebriant and stimulant. It is extremely popular and well-known for its addictive potential.
Nicotiana rustica leaves.
Nicotiana rustica leaves have a nicotine content as high as 9%, whereas Nicotiana tabacum (common tobacco) leaves contain about 1 to 3%
A cigar is a tightly rolled bundle of dried and fermented tobacco which is ignited so that its smoke may be drawn into the mouth. Cigar tobacco is grown in significant quantities in Brazil, Cameroon, Cuba, Dominican Republic, Honduras, Indonesia, Mexico, Nicaragua, Sumatra, Philippines, and the Eastern United States.
Tobacco is an agricultural product processed from the fresh leaves of plants in the genus Nicotiana. It can be consumed, used as an organic pesticide, and in the form of nicotine tartrate it is used in some medicines. In consumption it may be in the form of cigarettes smoking, snuffing, chewing, dipping tobacco, or snus.
