SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: January 16, 1995
(Date of Earliest Event Reported)
UNIVERSAL CORPORATION
(Exact name of registrant as specified in its charter)
VIRGINIA
(State or other jurisdiction
of incorporation)
1-652 54-0414210
(Commission (IRS Employer
File Number) Identification
Number)
Hamilton Street at Broad
Richmond, Virginia 23230
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(804) 359-9311
NUMBER OF PAGES IN THIS FILING 3
ITEM 5. OTHER EVENTS
The press release issued by the Registrant on January 16, 1995 and
attached hereto as Exhibit A is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
(99) Press release issued by the Registrant on January 16, 1995.
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 hereunto duly authorized.
UNIVERSAL CORPORATION
(Registrant)
By: /s/Karen M.L. Whelan
Karen M.L. Whelan
Vice President and Treasurer
Dated: January 24, 1995
EXHIBIT A
UNIVERSAL CORPORATION
P.O. Box 25099
Richmond, VA 23260
Phone (804) 359-9311
Fax: (804) 254-3584
Contact: Release:
Karen M.L. Whelan Immediately
Phone: (804) 359-9311
Fax: (804) 254-3594
RICHMOND, VA, January 16, 1995 -- Universal Corporation announced today that
earnings from continuing operations for fiscal year 1995 are expected to be
below management's previous estimate of approximately $50 million.
The general market trends in the leaf industry are improving right on
forecast. Inventories worldwide are down, and customer demand is improving.
As of this moment, there are no known major problems in crop qualities, and in
the case of Universal, the ongoing restructuring program is also generally
very much on track.
The difference in current expectations for fiscal year 1995 versus earlier
estimates is primarily related to disappointing results from operations in
Eastern Europe. Anticipated sales in that region are sharply down due to the
extremely depressed economic situation prevailing, and these reduced sales
will result in write-downs of inventories and outstanding customer obligations
for which pre-tax provisions of about $6.5 million will be included in second
quarter results. Due to uncertainly as to when economic recovery will permit
resumption of normal trading levels in the area, management has decided to
reshape operations and reduce overhead related to Eastern Europe, and a
further restructuring provision is anticipated prior to the end of the fiscal
year.
Looking forward to next year, the favorable trends noted above should help
results in most major markets. However, monetary policies in Brazil have led
t o a significantly overvalued Brazilian real, which will result in
substantially higher export costs for the new crop, and could affect the
timing of sales and margin improvement in that region. At this point, the
prospects for timely devaluation of the real are not strong. In Africa, the
Company expects normal to increased demand, and in the United States, current
indications are for satisfactorily increased volumes. At this stage, it is
too early to estimate how the differing local situations will affect the
magnitude of the Company's earnings recovery.
Universal Corporation is a diversified company with operations in tobacco,
lumber, and agri-products. Its gross revenues for the fiscal year that ended
on June 30, 1994, were approximately $3 billion.