Bat Gross Profit Dips 28% To $2.9b

BAT Industries Plc yesterday reported a 28 per cent decline in profits before tax to £1.794 billion ($2.9 billion) for the year ended December 31, 1997, due to a number of one-off charges. Earnings from its financial services division were up 3 per cent at £1.049 billion. But the group reported a charge of £266 million for the cost of refinancing the debt associated with its plan to merge its financial services division with Zurich Insurance. Profits from the groups tobacco business fell 18 per cent to £1.237 billion after provisions of £258 million for US legal settlements.