UNAUDITED QUARTERLY FINANCIAL DATA

Unaudited quarterly financial data for the fiscal years ended March 31, 2012 and 2011, is provided in the table below. Due to the seasonal nature of the Company's business, management believes it is generally more meaningful to focus on cumulative rather than quarterly results.



	First Quarter		Second Quarter			Third Quarter		Fourth Quarter
Fiscal Year Ended March 31, 2012
Sales and other operating revenues	$	479,465	$	641,026		$	672,420	$	653,966
Gross profit	94,358		119,426			147,105		111,103
Net income (loss)	17,322		(7,997		)	61,602		29,892
Net income (loss) attributable to Universal Corporation	15,888		(8,039		)	58,453		25,755
Earnings (loss) available to Universal Corporation common shareholders after dividends on convertible perpetual preferred stock	12,176		(11,752		)	54,741		22,042
Earnings (loss) per share attributable to Universal Corporation common shareholders:
Basic	0.52		(0.51		)	2.36		0.95
Diluted	0.52		(0.51		)	2.06		0.91
Cash dividends declared per share of convertible perpetual preferred stock	16.88		16.87			16.88		16.87
Cash dividends declared per share of common stock	0.48		0.48			0.49		0.49
Market price range of common stock:
High	45.72		41.48			47.38		48.60
Low	36.94		35.11			35.78		44.88

Fiscal Year Ended March 31, 2011
Sales and other operating revenues	$	538,916	$	664,188		$	688,208	$	680,215
Gross profit	102,237		133,274			154,044		118,778
Net income	24,418		53,783			57,585		28,764
Net income attributable to Universal Corporation	25,320		51,831			52,298		27,116
Earnings available to Universal Corporation common shareholders after dividends on convertible perpetual preferred stock	21,608		48,118			48,586		23,403
Earnings per share attributable to Universal Corporation common shareholders:
Basic	0.89		2.00			2.05		1.00
Diluted	0.87		1.78			1.82		0.95
Cash dividends declared per share of convertible perpetual preferred stock	16.88		16.87			16.88		16.87
Cash dividends declared per share of common stock	0.47		0.47			0.48		0.48
Market price range of common stock:
High	55.92		44.82			43.34		43.72
Low	38.38		35.44			37.05		37.74


Note:	Earnings per share amounts for each fiscal year may not equal the total of the four quarterly amounts due to differences in weighted-average outstanding shares for the respective periods and to the fact that the Company’s convertible perpetual preferred stock may be antidilutive for some periods.

Significant items included in the quarterly results were as follows:

•

First Quarter 2012 – restructuring costs of $6.9 million that included approximately $3.8 million for employee termination benefits, primarily related to the Company’s U.S. operations, and $3.1 million of costs incurred to exit a supplier arrangement in Europe in response to market changes. The restructuring costs reduced net income attributable to Universal Corporation by $4.4 million and diluted earnings per share by $0.19. The Company also recorded a $9.6 million gain on insurance settlement proceeds to replace factory and equipment lost in a fire at a plant in Europe. The gain on insurance settlement proceeds increased net income attributable to Universal Corporation by $6.2 million and diluted earnings per share by $0.27.

•

Second Quarter 2012 – restructuring costs of $3.0 million primarily related to voluntary and involuntary terminations in the Company’s operations in the U.S. and South America that reduced net income attributable to Universal Corporation by $1.9 million and diluted earnings per share by $0.08. In addition, the Company recorded a charge of $49.1 million to accrue a fine and accumulated interest imposed jointly on the Company and Deltafina, S.p.A. (“Deltafina”), its Italian subsidiary, by the European Commission related to tobacco buying practices in Italy. The charge reflected a September 2011 appeals court decision rejecting Deltafina’s application to reinstate its immunity in the case. The charge reduced net income attributable to Universal Corporation by $46.2 million and diluted earnings per share by $1.85. Deltafina has appealed the September 2011 appeals court decision to the next court level.


•	Third Quarter 2012 – a gain of $11.1 million on the sale of land and buildings in Brazil that were most recently used for storage activities. The gain increased net income attributable to Universal Corporation by $7.2 million and diluted earnings per share by $0.25.


•	Fourth Quarter 2012 – restructuring costs of approximately $1.4 million primarily related to voluntary and involuntary separations in various locations. The restructuring costs reduced net income attributable to Universal Corporation by $0.9 million and diluted earnings per share by $0.03.


•	First Quarter 2011 – restructuring costs of $0.9 million associated with voluntary early retirement offers aimed at reducing costs in the Company’s U.S. operations. The restructuring costs reduced net income attributable to Universal Corporation by approximately $0.6 million and diluted earnings per share by $0.02.

•

Second Quarter 2011 – a $7.4 million reversal of a portion of a charge recorded in fiscal year 2005 to accrue a fine imposed by the European Commission on Deltafina related to tobacco buying practices in Spain. The reversal reflected a favorable court decision in Deltafina’s appeal of the fine and increased net income attributable to Universal Corporation by $4.8 million and diluted earnings per share by $0.17. The Company also recorded restructuring costs of approximately $2.0 million primarily related to voluntary early retirement offers in the Company’s U.S. operations and voluntary and involuntary separations in various other locations. The restructuring costs reduced net income attributable to Universal Corporation by $1.3 million and diluted earnings per share by $0.05.

•

Third Quarter 2011 – a $19.4 million gain on the assignment of farmer contracts and sale of related assets in Brazil to an operating subsidiary of one of the Company’s major customers. The gain increased net income attributable to Universal Corporation by $12.6 million and diluted earnings per share by $0.44. The Company also recorded restructuring and impairment costs totaling $11.0 million during the quarter. Those costs primarily related to a decision to close the Company’s leaf tobacco processing operations in Canada and sell the assets of the operations, but they also included costs associated with initiatives to restructure and downsize activities at various other locations. The restructuring and impairment costs reduced net income attributable to Universal Corporation by $7.5 million and diluted earnings per share by $0.26.

•

Fourth Quarter 2011 – restructuring and impairment costs totaling $7.5 million. The restructuring costs included pension curtailment and settlement charges related to the termination of a defined benefit pension plan with the closing of the operations in Canada, as well as costs associated with voluntary early retirement offers in the Company’s U.S. operations and voluntary and involuntary separations in various other locations. The restructuring and impairment costs reduced net income attributable to Universal Corporation by $4.8 million and diluted earnings per share by $0.17.