BAT reports sharp rise in profits

BAT is the world's second largest cigarette maker

British American Tobacco has reported a 36% rise in pre-tax profits to more than £2bn ($2.86bn) for 2001.

Low exceptional charges and low net interest paid helped boost the profits.

The tobacco company's four leading cigarette brands - Lucky Strike, Kent, Dunhill and Pall Mall - achieved sales growth of 10%, the company said.

"The group's results since the demerger in 1998 prove that our global strategy for creating shareholder value is working," said chairman Martin Broughton.

BAT shares have performed largely in line with UK tobacco stocks over the last 12 months, but have outperformed the UK stock market by 45% over the same period.

BAT shares were down 0.6%, or four pence, at 649p in early trading on Tuesday.

BAT, which acquired Rothmans in 1999, is the second largest cigarette maker in the world, after Philip Morris.