Universal Corporation
May 21, 2009

Universal Corporation Announces 17% Increase in Per Share Results

RICHMOND, Va., May 21 /PRNewswire-FirstCall/ --


    FISCAL YEAR 2009 HIGHLIGHTS
    --  Diluted earnings per share up 17%, to $4.32 per share versus $3.70 per
        share last year.
    --  Revenues up 19% to $2.6 billion on higher volumes and higher prices.
    --  Operating income up 10% to $210 million, despite $50 million in
        currency losses this year.

    --  Restructuring costs last year of $12.9 million.

    FISCAL YEAR 2009 FOURTH QUARTER HIGHLIGHTS
    --  Diluted earnings per share more than doubled to $0.48 compared to
        $0.23 last year.
    --  Revenues up 21% to $564 million.
    --  Operating income nearly triples to $23 million.

    --  Restructuring costs last year of 9.6 million.

George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE: UVV), announced strong results for the fiscal year that ended on March 31, 2009. Diluted earnings per share were $4.32, up nearly 17% from last year's $3.70 per diluted share, reflecting volume increases and improved margins in most regions, along with share repurchases. The benefits of those factors were partially offset by significant foreign currency related losses. Net income for fiscal year 2009 was $131.7 million, compared to $119.2 million last year. Performance for the prior fiscal year was reduced by restructuring charges of $12.9 million ($0.25 per diluted share after taxes) from employee separation costs related to rationalizing operations in or associated with Africa and Canada, as well as pension curtailment charges related to benefit plan design. Revenues for the latest fiscal year were $2.6 billion, which represented a 19% increase compared to last year. The increase in revenues was primarily caused by increased leaf prices, as higher costs related to both farmer prices and the then weak U.S. dollar were included in product pricing. Volumes shipped also increased as African burley crops recovered from the weather-reduced levels of fiscal year 2008. In addition, trading volumes improved in North America and Asia.

For the fourth fiscal quarter, net income was $15.8 million, or $0.48 per diluted share, compared to $9.9 million, or $0.23 per diluted share, in the same period last year. In fiscal year 2008, fourth quarter results were reduced by restructuring charges of $9.6 million ($0.21 per diluted share after taxes), related to employee separation costs and pension curtailment charges. Revenues were $564 million, up 21% from the $467 million reported in the same quarter last year. Much of the revenue increase was due to increased volumes in North and South America this year, but customer pricing was also higher, reflecting increased costs.

The leaf cost increases seen in most regions during fiscal year 2009 were related to increased farmer pricing earlier in the year when crops were purchased and reflected competition from commodity crops and higher prices for fertilizer and other agronomic input materials. Those cost increases contributed to higher customer pricing. Universal also experienced significant remeasurement losses related to the rapid strengthening of the U.S. dollar compared to most currencies in tobacco sourcing markets, especially in Brazil. At certain points in the crop financing cycle, Universal has larger net monetary asset exposures, and most of the currency rate changes took place during that time. For fiscal year 2009, currency related losses totaled $50 million, while fiscal year 2008 included currency related gains of $30 million. The $80 million unfavorable year-to-year currency-related change, most of which was in Brazil, is reflected in selling, general, and administration expense and caused the large increase in that line item.

Mr. Freeman noted, "We are extremely pleased with the results of our operations this year. Setting aside significant currency effects, we produced improved results in almost every operation of our business. It was gratifying to see the improvements in our African results after several long, lean years while we worked to wind down our unprofitable growing projects. Teamwork and execution by our African management team and their counterparts in our corporate organization have been impressive. The currency effects in this extraordinary economic climate were dramatic, as the U.S. dollar strengthened by 44% over a six-month period against the local currency in Brazil, our single largest origin. We absorbed those costs, and with our strong operations and our financial discipline, we closed the year with an overall improvement in earnings and a strong financial position.

"Looking ahead, we have several observations and initiatives. In our major origins, we project somewhat smaller crops to be marketed in Brazil in fiscal year 2010, which should keep flue-cured markets in relative balance. However, filler grades of burley now face oversupply after the fiscal year 2008 shortages. The crops that were marketed in fiscal year 2009 did much to alleviate those shortages, and the current crops are extremely large, especially in Malawi, where production exceeds demand. It is likely that there will be a considerable amount of excess filler style burley tobacco in fiscal year 2010. The global economic situation continues to be unpredictable with volatility continuing in oil prices, currency rates and capital availability. In light of that volatility, we will continue to manage our financial resources conservatively. We also recognize the need to continually improve our operations. We plan to work to create new efficiencies, including the consolidation of our U.S. dark tobacco processing in Pennsylvania and the upgrade of our facility there. We will also continue to work with our farmers and our customers toward security of supply for our customers and stability of markets for our farmers. Our management team is agile and focused firmly on our business -- the business of providing our customers with quality leaf tobacco that meets their needs."

FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS:

For the fiscal year ended March 31, 2009, segment operating income for the flue-cured and burley operations was up 6% compared to last year, to nearly $190 million, which is the highest level this group has reported in the last five years. The increase was primarily related to improved volumes and margins. Revenues for those operations increased by over $440 million, to $2.3 billion. The North American segment reported operating income of $48 million, up nearly 40% from the prior year. The increase was attributable primarily to increased volumes from both core operations and sales of old crop tobacco as well as improved margins. Those factors also generated a 24% increase in revenues. Revenues for the Other Regions segment also grew by 24% to $1.8 billion. However, operating income fell by 2%, as significant improvements in African operations were offset by the effects of the currency losses, primarily in South America. After experiencing extremely short burley crops in fiscal year 2008, African operations improved as volumes grew, and customer pricing increased, covering the effects of higher farm prices. These two factors caused margins to return to more normal levels. Comparative performance in Africa also benefited from reduced provisions and write downs related to farmer receivables as well as last year's $8 million one-time charge in Malawi. Although South American volumes were down, performance was relatively flat before recognition of about $40 million in exchange and remeasurement losses related to the rapid strengthening of the U.S. dollar. Those losses, compared to gains in fiscal year 2008, were responsible for a $60 million decline in South American earnings. Results for Europe improved on higher volumes, due to shipment timing and to increased demand for tobacco sheet. Results in Asia were slightly lower, reflecting reduced availability of trading volumes.

For the fourth fiscal quarter, segment operating income for our flue-cured and burley tobacco operations increased by nearly 19% to $13.9 million. The increase was in large measure caused by a 30% improvement in performance of our North America segment. Although operating margins were down slightly for the North America group, volumes were higher, reflecting both increased current crop orders and sales of old crop tobaccos this year. Revenues for this group increased by more than 33%, primarily related to volumes. Segment operating income for the Other Regions operations was down about $2.6 million for the quarter. Last year's results were increased by a gain on the sale of surplus timberland and the reduction of a valuation allowance on Brazilian VAT tax. Those two items increased South American results by $14 million last year and were not repeated in the fourth quarter this year. African results were higher this year primarily because of an $8 million one-time charge accrued last year in Malawi. Although African volumes improved in this year's quarter with larger crops, most of the benefit was offset by currency remeasurement losses related to farmer advances and VAT receivables. Asia's results for the quarter improved in comparison to last year on higher volumes from trading and from shipment timing. Results from European operations were flat. Revenues for Other Regions increased by 16% to $278 million mainly due to increased pricing, which reflected higher leaf costs.

OTHER TOBACCO OPERATIONS:

In the Other Tobacco Operations segment, fiscal year 2009 operating income was $42 million, an increase of 5% over last year on an 11% reduction in revenues. Earnings improved on higher volumes from early shipments of dark tobacco in anticipation of the enactment of U.S. excise tax increases, some price increases related to higher costs, and higher volumes in the oriental tobacco joint venture. Those factors also benefitted revenues but were offset by last year's winding down of some just-in-time customer service business that was absorbed by the various regional operations. For the fourth fiscal quarter, operating income was $17 million, up sharply from last year's $10 million performance, on revenues of $133 million. The improvement in results was due to the early shipments of dark tobacco as well as prior year currency losses in the oriental tobacco joint venture.

OTHER ITEMS:

Interest income for the year decreased by $14.9 million to $2.3 million on lower average balances invested combined with significantly lower interest rates. Interest expense declined by $6.3 million to $35.6 million due to the full year impact of debt reduction completed in fiscal year 2008.

The consolidated effective income tax rates for the three and twelve months ended March 31, 2009, were approximately 50% and 33%, respectively. The rate for the quarter is substantially higher than the 35% U.S. marginal corporate tax rate due to additional tax expense related to an uncertain tax position and to an adjustment related to the Company's share of foreign taxes of one of the businesses sold during fiscal year 2007. The change is based on tax returns recently filed by that group after the sale.

Additional information

This information includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions readers that any statements contained herein regarding earnings and expectations for its performance are forward-looking statements based upon management's current knowledge and assumptions about future events, including anticipated levels of demand for and supply of its products and services; costs incurred in providing these products and services; timing of shipments to customers; changes in market structure; and general economic, political, market, and weather conditions. Actual results, therefore, could vary from those expected. A further list and description of these risks, uncertainties and other factors can be found in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2008 and in other documents the Company files with the Securities and Exchange Commission. This information should be read in conjunction with the Annual Report on Form 10-K for the year ended March 31, 2008. The Company expects to file its Annual Report on Form 10-K for the fiscal year ended March 31, 2009, with the Securities and Exchange Commission on or before June 1, 2009.

At 5:00 p.m. (Eastern Time) today, the Company will host a conference call to discuss these results. Those wishing to listen to the call may do so by visiting www.universalcorp.com at that time. A replay of the webcast will be available at that site for three months. A taped replay of the call will also be available until August 3, 2009, by dialing (800) 642-1687. The confirmation number to access the replay is 10770143.

Headquartered in Richmond, Virginia, Universal Corporation is the world's leading tobacco merchant and processor and conducts business in more than 30 countries. Its revenues from continuing operations for the fiscal year ended March 31, 2009, were $2.6 billion. For more information on Universal Corporation, visit its web site at www.universalcorp.com.

    UNIVERSAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME
    (In thousands of dollars, except per share data)

                               Three Months Ended        Fiscal Year Ended
                                    March 31,               March 31,
                                2009        2008         2009         2008
                                  (Unaudited)              (Unaudited)
    Sales and other
     operating revenues      $563,638    $467,181   $2,554,659   $2,145,822

    Costs and expenses
     Cost of goods sold       468,442     390,972    2,035,318    1,715,724
     Selling, general and
      administrative
      expenses                 72,058      60,125      309,409      225,670
     Restructuring                  -       9,611            -       12,915

    Operating income           23,138       6,473      209,932      191,513
     Equity in pretax
      earnings of
      unconsolidated
      affiliates                7,751       6,269       20,543       13,500
     Interest income              743       3,861        2,305       17,178
     Interest expense           6,417       9,634       35,631       41,908

    Income before income
     taxes and other items     25,215       6,969      197,149      180,283
     Income taxes              12,554         862       64,588       63,799
     Minority interests,
      net of income taxes      (3,101)     (3,791)         822       (2,817)

    Income from continuing
     operations                15,762       9,898      131,739      119,301

    Loss from discontinued
     operations, net of
     income taxes                   -           -            -         (145)

    Net income                 15,762       9,898      131,739      119,156

    Dividends on
     convertible perpetual
     preferred stock           (3,713)     (3,713)     (14,850)     (14,850)

    Earnings available to
     common shareholders      $12,049      $6,185     $116,889     $104,306

    Earnings (loss) per
     common share:
     Basic:
      From continuing
       operations               $0.48       $0.23        $4.57        $3.83
      From discontinued
       operations                   -           -            -        (0.01)
      Net income                $0.48       $0.23        $4.57        $3.82

     Diluted:
      From continuing
       operations               $0.48       $0.23        $4.32        $3.71
      From discontinued
       operations                   -           -            -        (0.01)
      Net income                $0.48       $0.23        $4.32        $3.70

    See accompanying notes.




    UNIVERSAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (In thousands of dollars)
                                                     March 31,     March 31,
                                                       2009          2008
                                                   (Unaudited)
                   ASSETS

    Current assets
     Cash and cash equivalents                      $212,626      $186,070
     Short-term investments                                -        58,889
     Accounts receivable, net                        263,383       231,107
     Advances to suppliers, net                      214,282       202,025
     Accounts receivable - unconsolidated affiliates  20,371        43,718
     Inventories - at lower of cost or market:
      Tobacco                                        586,136       602,945
      Other                                           60,712        42,562
     Prepaid income taxes                             13,181        17,696
     Deferred income taxes                            68,264        22,737
     Other current assets                             64,964        61,960
      Total current assets                         1,503,919     1,469,709

    Property, plant and equipment
     Land                                             15,773        16,460
     Buildings                                       251,875       254,737
     Machinery and equipment                         492,214       519,695
                                                     759,862       790,892
      Less accumulated depreciation                 (447,575)     (456,059)
                                                     312,287       334,833
    Other assets
     Goodwill and other intangibles                  106,097       106,647
     Investments in unconsolidated affiliates        103,987       116,185
     Deferred income taxes                            17,376        49,632
     Other noncurrent assets                          94,510       109,755
                                                     321,970       382,219

      Total assets                                $2,138,176    $2,186,761

    See accompanying notes.



    UNIVERSAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (In thousands of dollars)


                                                    March 31,  March 31,
                                                       2009       2008
                                                   (Unaudited)
            LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities
     Notes payable and overdrafts                   $168,608    $126,229
     Accounts payable and accrued expenses           236,837     249,005
     Accounts payable - unconsolidated affiliates     19,191      10,343
     Customer advances and deposits                   14,162      21,030
     Accrued compensation                             24,710      25,484
     Income taxes payable                              6,867       8,886
     Current portion of long-term obligations         79,500           -
      Total current liabilities                      549,875     440,977

    Long-term obligations                            331,808     402,942
    Pensions and other postretirement benefits        91,248      88,278
    Other long-term liabilities                       79,159      98,956
    Deferred income taxes                             52,842      36,795
      Total liabilities                            1,104,932   1,067,948

    Minority interests                                 3,771       3,182

    Shareholders' equity
     Series B 6.75% Convertible Perpetual
      Preferred Stock, no par value, 5,000,000
      shares authorized, 219,999 shares issued and
      outstanding (219,999 at March 31, 2008)        213,023     213,023
     Common stock, no par value, 100,000,000
      shares authorized, 24,999,127 shares
      issued and outstanding (27,162,150 at March
      31, 2008)                                      194,037     206,436
    Retained earnings                                686,960     711,655
    Accumulated other comprehensive loss             (64,547)    (15,483)
      Total shareholders' equity                   1,029,473   1,115,631

      Total liabilities and shareholders' equity  $2,138,176  $2,186,761

    See accompanying notes.




    UNIVERSAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
    (In thousands of dollars)
                                                      Fiscal Year Ended
                                                          March 31,
                                                       2009        2008
                                                       (Unaudited)
    CASH FLOWS FROM OPERATING ACTIVITIES
     OF CONTINUING OPERATIONS:
       Net income                                   $131,739    $119,156
       Adjustments to reconcile net income to
        net cash provided by operating activities
        of continuing operations:
        Net loss from discontinued operations              -         145
        Depreciation                                  40,761      41,383
        Amortization                                   1,029       1,857
        Provisions for losses on advances and
         guaranteed loans to suppliers                26,908      22,323
        Currency remeasurement (gain) loss, net       45,987     (15,168)
        Restructuring costs                                -      12,915
        Other, net                                    22,896      22,761
        Changes in operating assets and
         liabilities, net                           (170,254)   (114,800)
         Net cash provided by operating
          activities of continuing operations         99,066      90,572

    CASH FLOWS FROM INVESTING ACTIVITIES
     OF CONTINUING OPERATIONS:
      Purchase of property, plant and equipment      (35,656)    (27,704)
      Purchase of short-term investments              (9,658)    (58,889)
      Maturities and sales of short-term investments  68,848           -
      Proceeds from sale of businesses, less
       cash of businesses sold                             -      26,556
      Proceeds from sale of property, plant,
       and equipment                                  15,084      23,206
      Other, net                                       3,500      12,846
       Net cash provided (used) by investing
        activities of continuing operations           42,118     (23,985)

    CASH FLOWS FROM FINANCING ACTIVITIES
     OF CONTINUING OPERATIONS:
      Issuance (repayment) of short-term debt, net    59,934     (19,957)
      Repayment of long-term debt                          -    (164,000)
      Issuance of common stock                            37      24,372
      Repurchase of common stock                    (111,073)    (16,700)
      Dividends paid on convertible perpetual
       preferred stock                               (14,850)    (14,850)
      Dividends paid on common stock                 (45,938)    (48,602)
      Other                                             (104)       (981)
       Net cash used by financing activities
        of continuing operations                    (111,994)   (240,718)

       Net cash provided (used) by continuing
        operations                                    29,190    (174,131)

    CASH FLOWS FROM DISCONTINUED
     OPERATIONS:
      Net cash provided by operating
       activities of discontinued operations               -       6,495
      Net cash used by investing activities of
       discontinued operations                             -         (17)
      Net cash used by financing activities
       of discontinued operations                          -      (4,957)

       Net cash provided by discontinued
        operations                                         -       1,521

    Effect of exchange rate changes on cash           (2,634)        205
    Net increase (decrease) in cash and cash
     equivalents                                      26,556    (172,405)
    Cash and cash equivalents of continuing
     operations at beginning of year                 186,070     358,236
    Cash and cash equivalents of
     discontinued operations at beginning of year          -         239
    Less:  Cash and cash equivalents of
     discontinued operations at end of year                -           -

    Cash and cash equivalents at end of year        $212,626    $186,070


    See accompanying notes.



    NOTE 1.   BASIS OF PRESENTATION

Universal Corporation, with its subsidiaries ("Universal" or the "Company"), is the world's leading leaf tobacco merchant and processor. The Company completed the sale of its non-tobacco businesses in fiscal year 2008. The non-tobacco operations are reported as discontinued operations for all applicable periods in the accompanying financial statements.

Because of the seasonal nature of the Company's business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. All adjustments necessary to state fairly the results for the period have been included and were of a normal recurring nature. Certain amounts in prior year statements have been reclassified to conform to the current year presentation. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2008. The Company expects to file its Annual Report on Form 10-K for the fiscal year ended March 31, 2009, on or before June 1, 2009.

NOTE 2. GUARANTEES AND OTHER CONTINGENT LIABILITIES

Guarantees of bank loans to growers for crop financing and construction of curing barns or other tobacco producing assets are industry practice in Brazil and support the farmers' production of tobacco there. At March 31, 2009, the Company's total exposure under guarantees issued by its operating subsidiary in Brazil for banking facilities of farmers in that country was approximately $104 million. About 60% of these guarantees expire within one year, and nearly all of the remainder expire within five years. The subsidiary withholds payments due to the farmers on delivery of tobacco and forwards those payments to the third-party banks. Failure of farmers to deliver sufficient quantities of tobacco to the subsidiary to cover their obligations to third-party banks could result in a liability for the subsidiary under the related guarantee; however, in that case, the subsidiary would have recourse against the farmers. The maximum potential amount of future payments that the Company's subsidiary could be required to make as of March 31, 2009, was the face amount, $104 million ($165 million as of March 31, 2008), including accrued interest. The fair value liability recorded for the guarantees was approximately $35.2 million and $36.5 million at March 31, 2009 and 2008, respectively. In addition to these guarantees, the Company has other contingent liabilities totaling approximately $53 million, primarily related to a bank guarantee that bonds an appeal of a 2006 fine in the European Union.

Various subsidiaries of the Company are involved in litigation incidental to their business activities. While the outcome of these matters cannot be predicted with certainty, management is vigorously defending the claims and does not currently expect that any of them will have a material adverse effect on the Company's financial position. However, should one or more of these matters be resolved in a manner adverse to management's current expectation, the effect on the Company's results of operations for a particular fiscal reporting period could be material.

NOTE 3. EARNINGS PER SHARE

The following table sets forth the computation of earnings per share for the three months and fiscal years ended March 31, 2009 and 2008.

                                        Three Months Ended   Fiscal Year Ended
                                             March 31,           March 31,
                                          2009     2008       2009      2008
    (In thousands, except per share
     data)

    Basic Earnings Per Share
    ------------------------
    Numerator for basic earnings
     (loss) per share
     From continuing operations:
      Income from continuing
       operations                       $15,762   $9,898   $131,739  $119,301
      Less:  Dividends on convertible
       perpetual preferred stock         (3,713)  (3,713)   (14,850)  (14,850)
       Earnings available to common
        shareholders from continuing
        operations                       12,049    6,185    116,889   104,451

     From discontinued operations:
      Loss available to common
      shareholders from discontinued
      operations                              -        -          -      (145)

     Net income available to common
      shareholders                      $12,049   $6,185   $116,889  $104,306

    Denominator for basic earnings
     (loss) per share
     Weighted average shares
      outstanding                        24,991   27,196     25,570    27,263

    Basic earnings (loss) per share:
     From continuing operations           $0.48    $0.23      $4.57     $3.83

     From discontinued operations             -        -          -     (0.01)

    Net income per share                  $0.48    $0.23      $4.57     $3.82

    Diluted Earnings Per Share
    --------------------------
    Numerator for diluted earnings
     (loss) per share
     From continuing operations:
       Earnings available to common
        shareholders from continuing
        operations                      $12,049   $6,185   $116,889  $104,451
       Add:  Dividends on convertible
        perpetual preferred stock
        (if conversion assumed)               -        -     14,850    14,850
       Earnings available to common
        shareholders from continuing
        operations for calculation of
        diluted earnings per share       12,049    6,185    131,739   119,301

     From discontinued operations:
      Loss available to common
        shareholders from discontinued
        operations                            -        -          -      (145)

      Net income available to common
       shareholders                     $12,049   $6,185   $131,739  $119,156

    Denominator for diluted earnings
     (loss) per share:
     Weighted average shares
      outstanding                        24,991   27,196     25,570    27,263

     Effect of dilutive securities
      (if conversion or exercise
      assumed)
      Convertible perpetual preferred
       stock                                  -        -      4,718     4,711
      Employee share-based awards           122      204        178       212

     Denominator for diluted earnings
     (loss) per share                    25,113   27,400     30,466    32,186

    Diluted earnings (loss) per
     share:

     From continuing operations           $0.48    $0.23      $4.32     $3.71

     From discontinued operations             -        -          -     (0.01)

    Net income per share                  $0.48    $0.23      $4.32     $3.70



    NOTE 4.   SEGMENT INFORMATION

The principal approach used by management to evaluate the Company's performance is by geographic region, although some components of the business are evaluated on the basis of their worldwide operations. The Company evaluates the performance of its segments based on operating income after allocated overhead expenses (excluding significant non-recurring charges or credits), plus equity in pretax earnings of unconsolidated affiliates.

Operating results for the Company's reportable segments for each period presented in the consolidated statements of income were as follows:

                                    Three Months Ended       Fiscal Year Ended
                                          March 31,             March 31,
                                       2009      2008        2009       2008
    (in thousands of dollars)
    SALES AND OTHER OPERATING REVENUES
    Flue-cured and burley leaf
     tobacco operations:
     North America                  $152,627  $114,166    $416,899   $336,170
     Other regions(1)                278,131   238,956   1,848,430  1,485,304
      Subtotal                       430,758   353,122   2,265,329  1,821,474
    Other tobacco operations(2)      132,880   114,059     289,330    324,348

    Consolidated sales and other
     operating revenues             $563,638  $467,181  $2,554,659 $2,145,822

    OPERATING INCOME (LOSS)

    Flue-cured and burley leaf
     tobacco operations:
     North America                   $20,792   $16,015     $48,010    $34,379
     Other regions(1)                 (6,909)   (4,339)    140,476    143,589
      Subtotal                        13,883    11,676     188,486    177,968
    Other tobacco operations(2)       17,006    10,677      41,989     39,960

    Segment operating income          30,889    22,353     230,475    217,928

    Less:
     Equity in pretax earnings of
      unconsolidated affiliates(3)     7,751     6,269      20,543     13,500
     Restructuring and impairment
      costs(4)                             -     9,611           -     12,915

    Consolidated operating income    $23,138    $6,473    $209,932   $191,513


    (1) Includes South America, Africa, Europe, and Asia regions, as
        well as inter-region eliminations.
    (2) Includes Dark Air-Cured, Special Services and Oriental, as well
        as inter-company eliminations.  Oriental does not contribute
        significantly to the reported amounts for sales and other operating
        revenues because its financial results consist principally of equity
        in the pretax earnings of an unconsolidated affiliate.
    (3) Item is included in segment operating income, but not included in
        consolidated operating income.
    (4) Item is not included in segment operating income, but is included
        in consolidated operating income.

 

SOURCE Universal Corporation 05/21/2009
CONTACT: Karen M. L. Whelan of Universal Corporation, 1-804-359-9311, or Fax,
1-804-254-3594, investor@universalleaf.com
Web Site: http://www.universalcorp.com (UVV)