Reynolds American Third Quarter Profit Up 16 Percent

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

Reynolds American 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.

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 brands include Camel, Kool, Winston and Salem.