UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q


[ x ]  Quarterly Report Pursuant to Section 13 or 15 (d) of the
       Securities Exchange Act of 1934

For the Period Ended December 31, 1995

                                       OR

[   ]  Transition Report Pursuant to Section 13 or 15 (d) of the
       Securities Exchange Act of 1934

For the Transition Period From         to


Commission file number  1-652

                              UNIVERSAL CORPORATION
        -----------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

      VIRGINIA                          54-0414210
- ---------------------               --------------------
(State or other jurisdiction of     (I.R.S. Employer Identification Number)
 incorporation or organization)

1501 North Hamilton Street, Richmond, Virginia                     23230
- -----------------------------------------------            --------------------
    (Address of principal executive offices                      (Zip code)

Registrant's telephone number, including area code - (804) 359-9311


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days.
                                                     Yes     X     No


Common Stock, No par value - 35,042,051 shares
outstanding as of February 12, 1996



<PAGE>



PART I.  FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

UNIVERSAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
THREE AND SIX MONTHS ENDED DECEMBER 31, 1995 AND 1994



<TABLE>
<CAPTION>
                                                                      THREE MONTHS                      SIX MONTHS
                                                                  1995            1994             1995            1994
                                                             ------------------------------   ------------------------------
<S>                                                             <C>               <C>            <C>             <C>
SALES AND OTHER OPERATING REVENUES                              $1,032,829        $969,532       $1,875,283      $1,630,947

COSTS AND EXPENSES
    Cost of goods sold                                             883,128         832,938        1,621,953       1,399,974
    Selling, general and administrative                             85,630          90,703          156,757         161,171
    Interest                                                        15,087          17,431           32,312          34,675
                                                             --------------   -------------   --------------  --------------
                                                                   983,845         941,072        1,811,022       1,595,820
                                                             --------------   -------------   --------------  --------------

INCOME BEFORE INCOME TAXES AND OTHER ITEMS                          48,984          28,460           64,261          35,127
    Income taxes                                                    19,903          10,742           25,709          14,041
    Minority interests                                               2,684           2,186            2,865           2,245
                                                             --------------   -------------   --------------  --------------

INCOME FROM CONSOLIDATED OPERATIONS                                 26,397          15,532           35,687          18,841
    Equity in net income (loss) of
        unconsolidated affiliates                                    1,006            (27)            1,905             643
                                                             --------------   -------------   --------------  --------------

NET INCOME                                                         $27,403         $15,505          $37,592         $19,484
                                                             --------------   -------------   --------------  --------------

EARNINGS PER COMMON SHARE
                                                                      $.78             $.44           $1.07           $.56
                                                             --------------   -------------   --------------  --------------


RETAINED EARNINGS - BEGINNING OF PERIOD                                                            $323,595        $332,626
Net income                                                                                           37,592          19,484
Cash dividends declared ($.505-1995;  $.49-1994)                                                   (17,693)        (17,162)
                                                                                              --------------  --------------
RETAINED EARNINGS - END OF PERIOD                                                                  $343,494        $334,948
                                                                                              --------------  --------------

AVERAGE COMMON SHARES OUTSTANDING                                                                35,032,284      35,005,823


</TABLE>



<PAGE>


UNIVERSAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>

                                                                 December 31            June 30,
                                                                    1995                 1995
                                                               ---------------     ---------------
ASSETS


CURRENT
<S>                                                                  <C>                 <C>
    Cash and cash equivalents                                        $147,741            $158,093
    Accounts and notes receivable                                     465,693             392,797
    Accounts receivable - unconsolidated affiliates                    11,235              13,230
    Inventories - at lower of cost or market:
        Tobacco                                                       649,888             458,964
         Lumber and building products                                 103,664             122,613
        Agri-products                                                  61,179              72,908
        Other                                                          13,482              11,988
    Prepaid income taxes                                                5,178               8,371
    Deferred income taxes                                               6,002               5,625
    Other current assets                                               12,160              17,764
                                                               ---------------     ---------------
        Total current assets                                        1,476,222           1,262,353

REAL ESTATE, PLANT AND EQUIPMENT - AT COST
    Land                                                               35,226              35,631
    Buildings                                                         215,203             211,146
    Machinery and equipment                                           415,869             405,029
                                                               ---------------     ---------------
                                                                      666,298             651,806
        Less accumulated depreciation                                 335,465             317,365
                                                               ---------------     ---------------
                                                                      330,833             334,441

OTHER ASSETS
    Goodwill                                                          125,240             127,501
    Other intangibles                                                  30,527              21,759
    Investments in unconsolidated affiliates                           28,113              23,433
    Deferred income taxes                                              12,258               7,832
    Other noncurrent assets                                            46,398              30,646
                                                               ---------------     ---------------
                                                                      242,536             211,171
                                                               ---------------     ---------------

                                                                   $2,049,591          $1,807,965
                                                               ---------------     ---------------

</TABLE>




<PAGE>


Universal Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS



<TABLE>
<CAPTION>
                                                              December 31,          June 30,
                                                                    1995                1995
                                                               ---------------     ---------------
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT
<S>                                                                <C>                 <C>
    Notes payable and overdrafts                                   $637,139            $651,140

    Accounts payable                                                239,189             221,574
    Accounts payable - unconsolidated affiliates                      3,007               6,976
    Customer advances and deposits                                  274,954              46,443
    Accrued compensation                                             15,026              18,286
    Income taxes payable                                             22,440              21,745
    Current portion long-term obligations                            43,162              31,476
                                                               ---------------     ---------------
        Total current liabilities                                 1,234,917             997,640

LONG - TERM OBLIGATIONS                                             266,752             284,948
 
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS                          47,259              48,007

OTHER LONG - TERM LIABILITIES                                        49,565              52,962

DEFERRED INCOME TAXES                                                17,533              17,211

MINORITY INTERESTS                                                   26,588              17,238

SHAREHOLDERS' EQUITY
    Preferred stock $100 par, 8% cumulative,  authorized 
     75,000 shares, issued and outstanding 4 shares
    Additional preferred stock, no par value, authorized
        5,000,000 shares, none issued or outstanding
    Common stock, no par value, authorized 50,000,000
        shares, issued and outstanding 35,042,051 shares
        (35,030,314 at June 30, 1995)                                75,929              75,749
    Retained earnings                                               343,494             323,595
    Foreign currency translation adjustments                       (12,446)             (9,385)
                                                               ---------------     ---------------
        Total shareholders' equity                                  406,977             389,959
                                                               ---------------     ---------------

                                                                 $2,049,591          $1,807,965
                                                               ---------------     ---------------




</TABLE>



<PAGE>


UNIVERSAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED DECEMBER 31, 1995 AND 1994


<TABLE>
<CAPTION>


                                                                             1995              1994
                                                                         ------------     -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                          <C>               <C>    
    Net income                                                               $37,592           $19,484
    Adjustments to reconcile net income to net cash provided
        by operating activities                                               22,200            27,000
    Changes in operating assets and liabilities net of effects from
        purchase of businesses                                               (4,594)          (124,435)
                                                                         ------------     -------------

        NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIEs                   55,198           (77,951)
                                                                         ------------     -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property, plant and equipment                                (17,700)          (16,500)
    Purchase of businesses (net of cash acquired)                            (17,600)          (60,600)
    Other                                                                     (2,300)            2,100
                                                                          ------------     -------------

        NET CASH USED IN INVESTING ACTIVITIES                                (37,600)          (75,000)
                                                                          ------------     -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Issuance (repayment) of short-term debt - net                            (15,000)           65,000
    Repayment of long-term debt                                              (21,800)
    Issuance of long-term debt                                                16,300             6,700
    Proceeds from minority investment in a subsidiary                         10,000
    Issuance of common stock                                                      50               200
    Dividends paid                                                           (17,500)          (16,800)
                                                                          ------------     -------------

        NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                  (27,950)           55,100
                                                                          ------------     -------------

Net decrease in cash and cash equivalents                                    (10,352)          (97,851)
Cash and cash equivalents at beginning of period                             158,093           166,820
                                                                          ------------     -------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                  $147,741           $68,969
                                                                          ------------     -------------

</TABLE>




<PAGE>


UNIVERSAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1995

All figures contained herein are unaudited and stated in thousands of dollars

1) The Company's operating segments of domestic and foreign tobacco,  lumber and
building  products  and  agri-products  are seasonal by nature.  Therefore,  the
results of operations  for the six-month  period ended December 31, 1995 are not
necessarily  indicative  of results to be expected  for the year ending June 30,
1996. All adjustments necessary to fairly state the results for such period have
been included and were of a normal recurring nature.

2) The Company  provides  guarantees for seasonal  pre-export crop financing for
some of its subsidiaries and  unconsolidated  affiliates.  In addition,  certain
subsidiaries  provide  guarantees  that ensure that Common Market  subsidies and
value-added  taxes  will be  repaid  if the  crops  are not  exported  or if the
subsidies are not properly distributed to Common Market farmers. At December 31,
1995,  total  exposure  under  guarantees  issued  for  banking   facilities  of
unconsolidated   affiliates  was  $3  million.   Other  contingent   liabilities
approximate $53 million and relate principally to Common Market guarantees.  The
Company  considers  the  possibility  of loss on any of these  guarantees  to be
remote.

3)  Effective  in fiscal  year 1995,  the  Company  consolidated  the results of
African operations  previously accounted for under the equity or cost methods of
accounting.  Financial  data for the prior year's second  quarter and six months
has been  restated  to reflect  the  consolidation.  Before  the  effects of the
consolidation,  reported  consolidated net income for the quarter and six months
ended December 31, 1994 was $14.9 million or $.43 per share and $20.8 million or
$.59 per share, respectively.

4) The Company recognized in June 1995 a pre-tax  restructuring  charge of $15.6
million  related  to the  consolidation  of  certain  tobacco  operations  and a
reduction in the number of employees.  The charge  included $7.2 million for the
expected  costs of severance  payments  related to  approximately  200 employees
throughout  the  Company.  The  non-severance  portion of the charge was for the
write-down of fixed assets in operations  consolidated ($3.7 million), and other
nonoperating  restructuring costs ($1.7 million).  As of December 31, 1995, cash
payments  of $6 million had been made,  approximately  half of which was for the
termination of leases and the balance to cover severance costs of 75 employees.




















<PAGE>



I
TEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Liquidity and Capital Resources

         Working capital at December 31, 1995, was $241 million compared to $265
million at June 30, 1995.  The decline in working  capital was  accounted for by
increases  in current  assets of $214  million  offset by an increase in current
liabilities of $237 million. The most significant increases related to inventory
(up $191  million) and  customer  advances  (up $229  million) in the  Company's
tobacco operations.  Within the U.S., tobacco working capital needs are normally
at their  lowest  point at June 30.  Domestic  tobacco  balances at December 31,
generally  reflect current U.S.  burley crop purchases and processing  activity,
and any unshipped current year flue-cured crop. This increases inventories which
are funded by notes  payable and customer  advances.  Generally the Company does
not  purchase  tobacco in the United  States on a  speculative  basis;  thus the
increase in inventory represents tobacco that has been committed to customers.

         Generally  the  Company's   international  tobacco  operations  conduct
business  in U.S.  dollars,  thereby  limiting  foreign  exchange  risk to local
production and overhead costs.  Agri-product  and lumber  operations  enter into
foreign  exchange  contracts to hedge firm  purchase and sales  commitments  for
terms of less than six months.  Interest rate risk is limited because  customers
in the tobacco  business  usually  pre-finance  purchases or pay market rates of
interest for inventory purchased for their accounts.

         The liquidity and capital resources of the Company at December 31, 1995
remain adequate. Over the past two years the Company has announced restructuring
plans related to the consolidation of certain tobacco operations and a reduction
in the number of employees.  These efforts have led to increased  efficiency and
streamlined  operations.  Through  the  six  months  ended  December  31,  1995,
approximately  $3 million of severance  payments related to the fiscal year 1995
restructuring had been paid.

         In the first  quarter  of fiscal  1996,  the  Company  made some  minor
structural changes in its U.S. tobacco operations.  The $10 million of "Proceeds
from  minority  investment  in a  subsidiary"  in the  Statement  of Cash  Flows
represents  cash  proceeds  from  the  issuance  of  stock  in  a  newly  formed
subsidiary.  The  Company  treated  the  issuance  of these  shares as an equity
transaction and no gain or loss was recognized.

         In December  1995,  the  Company's  Board of Directors  authorized  the
execution and filing of a registration  statement for the purpose of registering
$200 million of debt  securities  of the Company for sale from time to time.  In
February  1996  the  Company  plans to sell  $100  million  of notes to  provide
long-term  funding to repay long-term  debt,  which will mature over the next 18
months. Pending such use, the net proceeds from the sale will be used to repay a
portion of the Company's short-term bank debt.

Results of Operations

         'Sales and Other Operating  Revenues'  increased $63 million or 6.5% in
the quarter and $244 million or 15% year-to-date.  Tobacco operations  accounted
for  70% of the  year-to-date  increase  while  agri-products,  and  lumber  and
building  products  accounted  for over 75% of the increase in the quarter.  The
six-month  tobacco  revenues in the current  fiscal year reflect the increase in
domestic and dark tobacco orders. The revenue increase in the quarter related to
lumber and building  products was due to the inclusion of Heuvelman,  a softwood
distributor  acquired  last year,  for the entire  quarter in the  current  year
compared to a portion in the prior fiscal year's quarter.

         Gross profits in the quarter  increased $13 million to $150 million and
increased year-to-date $22 million to $253 million. In the quarter and six month
periods the  aforementioned  acquisition of Heuvelman,  accounted for $4 million
and $11 million of the increases  respectively.  The balance of the gross profit
improvement was realized in tobacco operations. In the United States the volumes
of  flue-cured  and  burley  tobacco  bought and  processed  were up in both the
quarter and the  six-month  period due to an increase in  marketings  and orders
from domestic and export customers. Foreign tobacco gross profits in the quarter
increased  primarily  because of  improving  market  conditions  and because the
quarter ended December 31, 1994 included approximately $2.7 million of inventory
write-downs due to sharply depressed economic conditions in Eastern Europe which
led to reduced  sales  activity  in the  region.  Although  lumber and  building
product  gross  profits  benefited  from the inclusion of Heuvelman for the full
period,  the gross  profit  percentages  in the  quarter  and  six-month  period
continued to lag those of last year. In late fiscal 1995  softwood  prices began
to decline due to high inventory levels in Western European markets. This led to
increasing  pressure on prices (20-year lows) and reduced margins. In the second
quarter of fiscal year 1996,  inventory  levels were  reduced and the decline in
softwood  prices  has  stabilized.  Lower  purchase  prices  for raw  lumber are
expected  to  lead  to  improvement  in  softwood  margins  in  the  near  term.
Agri-product  gross  profits  were down  slightly in the  quarter and  six-month
periods.

         'Selling  and  General  and  Administrative  Expenses'  decreased  $5.1
million in the quarter and $4.4  million for the six months  primarily  due to a
$3.8 million provision  against Eastern European  customer  obligations that was
included in the second  quarter last year.  In addition the Company has begun to
realize the benefits of its  restructuring  efforts  initiated over the past two
years.

         The improved  tobacco world supply and demand  relationship is expected
to lead to better  results  for the  current  fiscal  year.  Although  there are
factors beyond  management's  control,  such as fiscal  policies in Brazil,  the
Company's balance and strength in the major tobacco origins provides a firm base
for growth. The Brazilian government has reduced inflation rates to 20-year lows
through fiscal policies  included in its Plano Real economic plan, which entails
financial  control  of items  such as  interest  rates and  exchange  rates.  In
addition,  the  Brazilian  government  exercises  control over  taxation,  trade
policies,  foreign  investment  and banking.  Although  there have been benefits
realized from enacting the Plano Real,  export  industries  have been  adversely
impacted.  The  long-term  viability  of the  government's  plan is dependent on
various factors,  including whether the current  administration  can continue to
hold  office in the  future,  the level of  foreign  currency  reserves  and the
confidence of the Brazilian business sector.  There were no significant  changes
in Brazil's  fiscal  policies during the six months ended December 31, 1995, and
none have been announced that would lead the Company to believe there would be a
significant impact for the Company's fiscal year ending June 30, 1996.





<PAGE>



P
ART II. OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits

         12       Ratio of Earnings to Fixed Charges


(b)      Reports on Form 8-K

         None filed for the quarter ended December 31, 1995.




















<PAGE>



                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.




Date: February 12, 1996                 UNIVERSAL CORPORATION
                           ------------------------------------------------
                                            (Registrant)



                                       / s / Hartwell H. Roper
                           ------------------------------------------------
                                Hartwell H. Roper, Vice President and
                                       Chief Financial Officer



                                      / s / William J. Coronado
                           ------------------------------------------------
                                   William J. Coronado, Controller
                                   (Principal Accounting Officer)










EXHIBIT 12.


UNIVERSAL CORPORATION AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
SIX MONTHS ENDED DECEMBER 31, 1995 AND 1994

                                                     1995              1994
                                                -------------    --------------

Pretax income from continuing operations             $64,261           $35,127
Pretax income of unconsolidated affiliates             2,592               768
Fixed charges                                         32,972            35,204
                                                -------------    --------------

Earnings                                             $99,825           $71,099
                                                -------------    --------------

Interest                                             $32,312           $34,675
Interest of unconsolidated affiliates                    543               412
Debt discount amortization                               117               117
                                                -------------    --------------

Fixed Charges                                        $32,972           $35,204
                                                -------------    --------------

Ratio of Earnings to Fixed Charges
                                                         3.0               2.0
                                                -------------    --------------





<TABLE> <S> <C>


<ARTICLE>                     5
<CIK>                                       0000102037
<NAME>                           UNIVERSAL CORPORATION
<MULTIPLIER>                                     1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          JUN-30-1996
<PERIOD-END>                               DEC-31-1995
<CASH>                                         147,741
<SECURITIES>                                         0
<RECEIVABLES>                                  476,928
<ALLOWANCES>                                         0
<INVENTORY>                                    828,213
<CURRENT-ASSETS>                             1,476,222
<PP&E>                                         666,298
<DEPRECIATION>                                 335,465
<TOTAL-ASSETS>                               2,049,591
<CURRENT-LIABILITIES>                        1,234,917
<BONDS>                                        266,752
<COMMON>                                        75,929
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                     331,048
<TOTAL-LIABILITY-AND-EQUITY>                 2,049,591
<SALES>                                      1,875,283
<TOTAL-REVENUES>                             1,875,283
<CGS>                                        1,621,953
<TOTAL-COSTS>                                1,621,953
<OTHER-EXPENSES>                               156,757
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              32,312
<INCOME-PRETAX>                                 64,261
<INCOME-TAX>                                    25,709
<INCOME-CONTINUING>                             37,592
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    37,592
<EPS-PRIMARY>                                     1.07
<EPS-DILUTED>                                        0
        


</TABLE>