Reynolds American Profits Rise

The nation's second-largest tobacco company, Reynolds American, says its third-quarter profits increased 16 percent because of sales of smokeless tobacco.

The Winston-Salem-based company says it earned 358 million dollars, or $1.21 per share. That's up from 309 million dollars, or $1.05 per share, in the third quarter of 2006.

Revenue increased nearly 5 percent to 2.3 billion dollars.

The profits matched Wall Street projections on the $1.21 per share, according to analysts polled by Thomson Financial.

Reynolds-American also cited higher cigarette prices. The company is best known for Camels and Grizzly smokeless tobacco.

Chairman and Chief Executive Susan Ivey says the company got solid performances from all of its operating companies.