[Intl-tobacco] BAT attributes profit warning on reduced smuggling]

Wed, 05 Dec 2001 13:48:08 -0800

--------------DAD20151AA8E1BB83922B5FC
Content-Type: text/plain; charset=iso-8859-1; x-mac-type="54455854"; x-mac-creator="4D4F5353"
Content-Transfer-Encoding: 8bit

Our friend Clive Bates from ASH UK sent this cover note out on top of a
BAT notice that its sales volume is expected to be reduced. The BAT
statement follows after Clive's note:

Dear friends

Please find today's sad little profit warning from British American
Tobacco.  Apparently the 'even more stringent criteria' to be applied to
the choice of large scale smugglers of BATs product (ie. 'duty free
sales') is a factor in depressing expected earnings in 2002.

Merry Xmas to all shareholders!

Clive Bates
ASH 5th December 2001CONFIRMATION OF EARNINGS ESTIMATESBritish American
Tobacco will shortly be meeting analysts and investors prior to the end
of itsfinancial year and is therefore making the following statement.
The Board is re-affirming itsconfidence in delivering high single figure
earnings growth in line with market estimates for 2001and, at current
exchange rates, for 2002. This continued growth should be achieved
despite an expected reduction of some 2-3% in volumesin 2002. Economic
conditions will have an impact on Group performance in the coming year
andthe Groupís operational management have reviewed their procedures and
decided to apply evenmore stringent criteria for the supply of products
to trade customers, especially in the area of duty-freesales. The net
impact is that the rate of operating profit growth is likely to be lower
than market estimates.As mentioned above, however, adjusted diluted
earnings per share should still increase in line withmarket expectations
of high single figure growth, as a result of improvements in the net
interest,minorities and tax charges. The business remains buoyant and
the Board is confident of continuing to generate similar growthin
earnings per share over the medium term and expects dividend growth to
continue at currentlevels.---------------------- Clive
BatesDirectorAction on Smoking and Health (ASH)102 Clifton
StreetLondonEC2A 4HWT: +44 (0)20 7739 5902F: +44 (0)20 7613 0531M: +44
(0)77 6879 1237W: http://www.ash.org.uk

--------------DAD20151AA8E1BB83922B5FC
Content-Type: text/html; charset=iso-8859-1
Content-Transfer-Encoding: 8bit

<!doctype html public "-//w3c//dtd html 4.0 transitional//en">
<html>
Our friend Clive Bates from ASH UK sent this cover note out on top of a
BAT notice that its sales volume is expected to be reduced. The BAT statement
follows after Clive's note:
Dear friends
 &nbsp;
 Please find today's sad little profit warning from British American
Tobacco.&nbsp; Apparently the 'even more stringent criteria' to be applied
to the choice of large scale smugglers of BATs product (ie. 'duty free
sales') is a factor in depressing expected earnings in 2002.
 &nbsp;
 Merry Xmas to all shareholders!
 &nbsp;
 Clive Bates
 ASH&nbsp;5th
December 2001CONFIRMATION
OF EARNINGS ESTIMATESBritish
American Tobacco will shortly be meeting analysts and investors prior to
the end of itsfinancial
year and is therefore making the following statement. The Board is re-affirming
itsconfidence in delivering
high single figure earnings growth in line with market estimates for 2001and,
at current exchange rates, for 2002.&nbsp;This
continued growth should be achieved despite an expected reduction of some
2-3% in volumesin 2002.
Economic conditions will have an impact on Group performance in the coming
year andthe Group’s operational
management have reviewed their procedures and decided to apply evenmore
stringent criteria for the supply of products to trade customers, especially
in the area of duty-freesales.&nbsp;The
net impact is that the rate of operating profit growth is likely to be
lower than market estimates.As
mentioned above, however, adjusted diluted earnings per share should still
increase in line withmarket
expectations of high single figure growth, as a result of improvements
in the net interest,minorities
and tax charges.&nbsp;The
business remains buoyant and the Board is confident of continuing to generate
similar growthin earnings
per share over the medium term and expects dividend growth to continue
at currentlevels.----------------------&nbsp;Clive
BatesDirectorAction on Smoking
and Health (ASH)102 Clifton StreetLondonEC2A
4HWT: +44 (0)20 7739 5902F: +44
(0)20 7613 0531M: +44 (0)77 6879 1237W:
<a href="http://www.ash.org.uk/">http://www.ash.org.uk</a>&nbsp;</html>

--------------DAD20151AA8E1BB83922B5FC--