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 March 31, 1994


( )  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)

State or other jurisdiction of incorporation or organization -VIRGINIA

I.R.S. Employer Identification Number - 54-0414210

Address of principal executive offices - 1501 NORTH HAMILTON STREET 
                                         RICHMOND, VIRGINIA  23230      

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 - 35,001,185 shares outstanding as of May 11, 1994




Universal Corporation and Subsidiaries
Three and Nine Months Ended March 31, 1994 and 1993

                                         Three Months        Nine Months
                                     1994      1993     1994          1993 
Sales and other operating
 revenues                         $749,587  $836,688  $2,304,000  $2,551,563

Costs and expenses                 
    Cost of goods sold             668,942   746,663   1,998,025   2,219,783
    Selling, general and
     administrative                 58,317    50,755     198,947     179,387
    Interest                        14,809    10,366      45,021      34,976

                                   742,068   807,784   2,241,993   2,434,146

Income before income taxes and
 other items                         7,519    28,904      62,007     117,417
    Income taxes                       259    11,565      17,745      42,270
    Minority interests                 262      (477)        566        (312)

Income from consolidated
 operations                          6,998    17,816      43,696      75,459 

Equity in net income of
 unconsolidated affiliates           2,345     1,266       4,316       2,648 

Income before cumulative effect
 of change in accounting
 principle                           9,343    19,082      48,012      78,107 

Cumulative effect of change in
 accounting principle                                    (29,406)      

Net income                          $9,343   $19,082     $18,606     $78,107 

Per common share                    
    Income before cumulative
     effect of change in                 
     accounting principle             $.26      $.58       $1.35       $2.37 
    Cumulative effect of
     change in accounting                 
     principle                                              (.83)     
    Net income                        $.26      $.58        $.52       $2.37 

Retained earnings - Beginning of
 period                                                 $341,523    $290,766 
Net income                                                18,606      78,107 

Cash dividends declared
 ($.70-1994; $.64-1993)                                  (24,944)    (21,044) 

Retained earnings - End of period                       $335,185    $347,829 

Average common shares outstanding                     35,631,878  32,923,811 


Universal Corporation and Subsidiaries

                                                    March 31,      June 30, 
                                                      1994          1993 



    Cash and cash equivalents                        71,273       $119,693 

    Accounts and notes receivable                   384,252        345,766 

    Accounts receivable - unconsolidated
     affiliates                                      96,325         20,098 

    Inventories at lower of cost or market:          
        Tobacco                                     487,050        431,140 
         Lumber and building products                77,413         63,386 
        Agri-products                                63,577         56,004 
        Other                                        10,751         18,811 

    Prepaid income taxes                              6,963     
    Deferred income taxes                             3,397          3,606 
    Other current assets                             25,140         28,431 
        Total current assets                      1,226,141      1,086,935 

Real estate, plant and equipment - at cost         
    Land                                             22,561         21,004 
    Buildings                                       158,747        155,652 
    Machinery and equipment                         361,394        347,569 
                                                    542,702        524,225 

        Less accumulated depreciation               261,606        246,450 
                                                    281,096        277,775 
Other assets         
    Goodwill                                        119,502        119,717 
    Other intangibles                                27,808         20,080 
    Investments in unconsolidated affiliates         30,438         25,745 
    Deferred income taxes                            13,077          2,193 
    Other noncurrent assets                          33,518         31,743 
                                                    224,343        199,478 
                                                 $1,731,580     $1,564,188 

Universal Corporation and Subsidiaries

                                                     March 31,     June 30, 
                                                       1994          1993 



    Notes payable and overdrafts                      555,410      $426,251 
    Accounts payable                                  214,659       237,574 
    Accounts payable - unconsolidated affiliates       19,015        25,402 
    Customer advances and deposits                     75,811        52,672 
    Accrued compensation                               13,184        21,017 
    Income taxes payable                                              3,936 
    Current portion long-term obligations              10,287        19,552 
        Total current liabilities                     888,366       786,404 

Long - term obligations                               301,685       281,807 

Postretirement benefits other than pensions            48,650     
Other long - term liabilities                          48,760        40,592 
Deferred income taxes                                  33,717        35,020 
Minority interests                                      5,484         2,452 

Shareholders' equity         

 Preferred stock $100 par, 8% cumulative,
  authorized 75,000 shares, issued and outstanding
 Additional preferred stock, no par value,
  authorized 5,000,000 shares, none issued or
 Common stock, no par value, authorized 50,000,000         
  shares, issued and outstanding 35,604,485 shares         
  (35,631,485 at June 30, 1993)                        86,169        86,672 
 Retained earnings                                    335,185       341,523 
 Foreign currency translation adjustments             (16,436)      (10,282) 
        Total shareholders' equity                    404,918       417,913 
                                                   $1,731,580    $1,564,188 

Universal Corporation and Subsidiaries
Nine Months Ended March 31, 1994 and 1993

                                                             1994       1993 


    Net income                                             $18,606     $78,107 
    Adjustments to reconcile net income to net
     cash provided by operating activities                  44,000      24,400 
    Cumulative effect of change in accounting principle     29,406
    Changes in operating assets and liabilities net
     of effects from purchase of businesses               (219,032)     11,865 

     Net cash provided by (used in) operating activities  (127,020)    114,372 


    Purchase of property, plant and equipment              (19,000)    (29,800)
    Purchase of businesses (net of cash acquired)          (15,200)    (84,900)
    Increase in other intangibles                          (10,600)     
    Proceeds from long-term investment                      14,100     
    Other                                                   (3,500)      6,200 

    Net cash used in investing activities                  (34,200)   (108,500)


    Issuance (repayment) of short-term debt - net          122,600     (15,200)
    Repayment of short-term debt classified as
     long-term June 30, 1993                              (100,000)     
    Repayment of long-term debt                                        (24,000)
    Issuance of long-term debt                             115,000     
    Issuance (purchase) of common stock                       (600)     70,900 
    Dividends paid                                         (24,200)    (20,400)

    Net cash provided by financing activities              112,800      11,300

Net increase (decrease) in cash and cash equivalents       (48,420)     17,172 
Cash and cash equivalents at beginning of period           119,693      82,674 

CASH AND CASH EQUIVALENTS AT END OF PERIOD                 $71,273     $99,846 

Universal Corporation and Subsidiaries
March 31, 1994

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

1)  The Company's major 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 nine-month period ended March 31, 1994 are not
necessarily indicative of results to be expected for the year
ending June 30, 1994.  All adjustments necessary to fairly state
the results for such period have been included and were of a
normal recurring nature.

2)  At March 31, 1994, total exposure under guarantees issued
for banking facilities of unconsolidated affiliates was $18
million.  Other contingent liabilities approximate $160 million
and relate principally to Common Market guarantees, joint
venture overdraft and other guarantees.

3)  In August, 1993, Congress passed the "Omnibus Budget
Reconciliation Act of 1993" which, among other things, increased
the corporate tax rate from 34% to 35% retroactive to January 1,
1993.  The cumulative impact was to increase tax expense
approximately $1.5 million in the first quarter.  The reduction
in the effective tax rate for the nine months to 29% was
primarily attributable to prior years' non-repatriated earnings
that have been deemed permanently reinvested in the current
year, a greater proportion of earnings taxed at less than the
full statutory rate and amendments of prior years' income tax

4)  The Company provides postemployment health and life
insurance benefits for eligible U.S. employees attaining
specific age and service requirements.  The plans contain
cost-sharing features such as deductibles and coinsurance.  In
the past the Company has made changes to the plans that have
reduced benefits.  The Company reserves the right to amend or
discontinue the plans at any time.                            

Effective July 1, 1993, the Company adopted SFAS 106 "Employers'
Accounting for Postretirement Benefits Other Than Pensions"
which requires that the estimated costs of these benefits be
expensed over the employee's active service period rather than
as paid.  The standard permits an employer to recognize the
unrecorded postretirement obligation as a one-time charge to
earnings or to be amortized over a period of up to 20 years.  In
the first quarter of the current fiscal year, the Company
elected to recognize the obligation as a one-time charge of
approximately $29 million or $.83 per share (net of $18 million
in taxes).  For the nine months ended March 31, 1994, the effect
of adopting SFAS 106 was a decrease in 'Income Before Cumulative
Effect Of Change In Accounting Principle' of approximately $1.4
million.  The after-tax cost for the nine months ended March 31,
1993 was approximately $450 thousand recorded on a cash basis.

The accumulated postretirement benefit obligation was determined
using an assumed health care cost trend rate of 15% as of July
1, 1993 decreasing gradually to 6.5% by fiscal year 2005.   A
one percentage point increase in the assumed health care cost
trend rate would increase the accumulated benefit obligation by
approximately $8 million and the aggregate of the service and
interest cost components of net periodic postretirement benefit
expense for the fiscal year by approximately $1 million.  The
assumed discount rate used in determining the benefit obligation
at July 1, 1993 was 8%. 

Effective January 1, 1994, the Company amended the
aforementioned medical benefit plan for future retirees.  The
change reduces the Company's postretirement obligation by
approximately $14 million (net of tax benefits).  For reporting
periods subsequent to January 1, the change is expected to
substantially offset the impact on pre-tax earnings resulting
from the adoption of SFAS 106.   

5) Unaudited pro forma consolidated results of operations for
the nine months ended March 31, 1993 as though Casalee had been
acquired at July 1, 1992 are:  Gross revenues - $2.7 billion; 
Net income $64.2 million or $1.80 per common share.  Prior year
balance sheet amounts have been reclassified to reflect the
allocation of the purchase price of Casalee.




Liquidity and Capital Resources

  In August 1993 the Company in a private placement issued $100
million of 6.14% notes with a final maturity in the year 2000. 
The proceeds were used to reduce short-term borrowings that had
been classified as long-term.   The Company also replaced its
$100 million revolving credit facility and with a more favorable
facility.  The Company's liquidity and strong capital structure
have been supported by these actions.

  Current assets and current liabilities increased $139 million
and $102 million, respectively, at March 31, 1994 compared to
June 30, 1993, primarily due to the seasonal requirements of the
Company's tobacco operations and advances made to purchase
tobacco from affiliates.  The June 30 balance sheet generally
reflects the low point of working capital needs in the U.S.
while those for South and Central America start to expand.  At
March 31 the reverse is true, with the domestic operations
carrying unshipped current crops.  Inventories and accounts
receivable are generally supported by trade payables, lines of
credit, and customer advances.   

Results of Operations

  'Sales and Other Operating Revenues' declined $87 million and
$248 million in the quarter and nine-month periods respectively,
primarily due to short-term adverse conditions in the world
markets, as well as from an unsettled domestic tobacco
situation.   Domestic purchases and sales were down in the U.S.,
reflecting high support prices and the poor quality of the
flue-cured crop.  Processing volumes in the U.S. were comparable
to last year due to higher volumes of stabilization tobaccos, as
the cooperatives purchased a higher proportion of the crop
marketed.  Foreign tobacco revenues were up year-to-date due to
the inclusion of Casalee's operations in the current fiscal
year.  Lumber and building product revenues were down
year-to-date due primarily to exchange rates, while agri-product
revenues were up in the quarter and year-to-date due to
increased nut and sunflower seed volumes.

  Gross profits in the quarter and nine-month periods declined $9
million and $26 million respectively.  Domestic tobacco results
reflect reduced orders related in part to uncertainty over
pending excise tax legislation.  Processing volume was similar
to last year's due to increased processing of  tobacco purchased
by the stabilization cooperative, but higher costs of handling
the poor quality flue-cured crop and lower yields overall
adversely affected processing earnings.  Foreign tobacco results
were adversely affected by a combination of U.S. legislation
restricting foreign leaf content in U.S. made cigarettes, and a
worldwide supply/demand imbalance.  In recognition of the
effects of world prices on its inventories, the Company recorded
a $3.5 million pre-tax writedown of its foreign source inventory
in the third quarter of the current fiscal year.  In addition,
results for last year's nine months benefited from profits on
shipments that were accelerated at the request of customers. 
There are encouraging signs of improvement in the worldwide
tobacco supply situation with production declines in virtually
all market areas.  Excluding the operating results of a
laminating division sold last year, lumber and building product
gross profits were up in the quarter and comparable year-to-date
on improved margins.   Agri-product results were adversely
effected by losses in coffee trading which are not expected to
recur.  Nut and sunflower seed operations improved during the
quarter and year-to-date while other products reported mixed
results due to varying market conditions.

   'Selling, general and administrative expenses' increased $7.6
million and $19.6 million for the quarter and nine-month
periods, respectively, primarily due to the inclusion of
Casalee's operations.  Included in those operations are the
costs of developing markets in both Eastern Europe and China,
which will lay the basis for significant opportunities in the
long-term but adversely affect current earnings.   Fiscal year
1994 includes an increase in expense of approximately $2.4
million year-to date related to the adoption of SFAS 106
"Employers' Accounting for Postemployment Benefits Other Than
Pensions."  'Interest expense'  reflects increased inventory,
working capital needs of Casalee and the financing cost related
to the acquisition of Casalee not covered by the issuance of
common stock. 

  'Income Taxes' for the nine months ended March 31, 1994,
reflect the combined effects of new tax legislation in the
United States, non-repatriated earnings that have been deemed
permanently reinvested, a greater proportion of earnings taxed
at less than the full statutory rate and amendments of prior
years' income tax returns.  In aggregate the Company's effective
tax rate in the nine months was 29% compared to 36% in the prior
year. See note 3 for additional information.   As previously
mentioned (see note 4), the Company has adopted SFAS 106 which
required a one-time charge of $29.4 million in the first quarter
of the current fiscal year. 

  As previously reported, the world supply situation appears to
be improving.  However, the industry must continue to deal with
U.S. legislative uncertainties as well as with higher than
optimum inventory levels held by the trade.  We cautiously
expect a gradual return to a more normal operating environment
in fiscal year 1995 and beyond.  In the meantime we are
implementing efficiencies throughout the organization, which are
expected to result in a leaner and more focused company for the


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.

                                    UNIVERSAL CORPORATION           

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

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

Date:  May 11, 1994