Tax increases and the tough economy took 11 percent out of the volume of cigarettes shipped by the maker of Camel, Pall Mall and Natural American Spirit. But the nation's second-biggest cigarette company raised its full-year profit outlook based in part on its quarterly performance.

Reynolds American earned $362 million, or $1.24 per share, for the period that ended Sept. 30. That's up from $211 million, or 72 cents per share, a year earlier.

Analysts forecast profit of $1.17 per share, according to a Thomson Reuters poll. Analysts' estimates normally exclude one-time items.

Reynolds American's results come on the heels of those for Altria Group Inc., parent company of the nation's No. 1 tobacco company, Philip Morris USA. Altria reported Wednesday that its third-quarter profit to rose 1.7 percent on cost-cutting and improved results from its cigar unit, even though it sold fewer cigarettes.

Analysts are closely watching the industry's third-quarter reports for the first real cigarette volume figures for the period, when a 62-cent federal tax increase took effect.

Winston-Salem, N.C.-based Reynolds American said the quarter's revenue dipped 5 percent to $2.15 billion from $2.27 billion, missing Wall Street's $2.19 billion estimate.

The cigarette maker lifted its full-year profit outlook to a range of $4.60 to $4.70 per share from $4.40 to $4.60 per share.

Analysts predict profit of $4.59 per share for the year.

A service of YellowBrix, Inc.