RJR Intl. Profits Down (fwd)

[Robert Weissman <rob@essential.org>]

                            July 23, 1998
 RJR Nabisco Hldgs 2Q Loss
 44c/Diluted Shr Vs Net 71c

 Dow Jones Newswires

 RJR Nabisco Holdings Corp. - New York
    2nd Quar June 30:
                       1998           1997
 Sales           $4,292,000,000   $4,286,000,000
 Net income      a (130,000,000)   b 243,000,000
 Avg shrs (diluted) 323,858,000      324,996,000
 Shr earns (basic)
  Net income             a (.44)           b .72
 Shr earns (diluted)
  Net income             a (.44)           b .71

 Figures in parentheses are losses.

 a. Includes restructuring charge and related expenses of $219
 million, or 68 cents a diluted share; tobacco settlement
 charges of $97 million, or 30 cents a diluted share. Excluding
 the charges, the company had net income of $186 million, or
 54 cents a diluted share.

 b. Includes $32 million gain from the sale of certain regional
 brands. Also includes expenses of $31 million including
 writedown of a domestic business held for sale, reorganization
 of the U.S. Foods Group, and relocation of the company's
 headquarters.

 RJR Nabisco Holdings Corp. (RN) said softness in its
 international tobacco and the food businesses, as well as
 foreign exchange issues hurt its earnings for the latest second
 quarter.

 The company said it has remedies in place that it expects will
 position those businesses to contribute to "renewed earnings
 growth" by year-end.

 RJR Nabisco second-quarter operating company contribution
 fell 10% to $788 million, exlcluding charges, from $876 million
 a year ago.

 RJR Nabisco said second-quarter sales for its worldwide
 tobacco business rose 3% to $2.16 billion from $2.1 billion a
 year ago.

 Tobacco's operating company contribution fell 4% to $550
 million, excluding charges, from $574 million a year ago.
 Worldwide tobacco volume fell 6%.

 Reynold's International, the company's international tobacco
 business, reported second-quarter sales of $763 million, down
 13% from a year ago. International volume was down 8% in
 the latest second quarter.

 RJR Nabisco said deteriorating economic conditions in the
 Commonwealth of Independent States and Asia, and
 weakness in Near and Middle East markets hurt international
 volume in the latest second quarter.

 The company said it still believes the longer-term prospects for
 its international tobacco business are "attractive."

 The company said it is seeing progress in Western European
 markets that hae responded well to increased marketing
 investments.

 RJR Nabisco said the second-quarter operating company
 contribution from its 80.6%-owned Nabisco Holdings Corp.
 (NA) fell 19% to $259 million, excluding charges, from $319
 million, excluding gains.

 As reported Wednesday, Nabisco had second-quarter
 worldwide net sales of $2.13 billion, down 3% from $2.19
 billion a year ago.

 RJR Nabisco said operating company contribution from
 Nabisco Biscuit fell 30% for the latest second quarter to $129
 million, excluding charges..

 The company attributed that decline to poor performance by
 Snack Well's and breakfast snacks and higher selling-related
 costs.

 RJR Nabisco Holdings Corp. - New York
    6 Months June 30:
                       1998           1997
 Sales           $8,239,000,000   $8,065,000,000
 Net income      c (150,000,000)   b 456,000,000
 Avg shrs (diluted) 323,828,000      325,237,000
 Shr earns (basic)
  Net income             c (.53)          b 1.34
 Shr earns (diluted)
  Net income             c (.53)          b 1.33

 Figures in parentheses are losses.

 b. Includes $32 million gain from the sale of certain regional
 brands. Also includes expenses of $31 million including
 write-down of a domestic business held for sale,
 reorganization of the U.S. Foods Group, and relocation of the
 company's headquarters.

 c. Includes restructuring charge and related expenses of $219
 million, or 68 cents a diluted share; and tobacco settlement
 charges of $97 million, or 30 cents a diluted share. Excluding
 the charges, the company had net income of $365 million, or
 $1.05 a diluted share.

 RJR Nabisco is a tobacoo and food holding company.


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