* Operating profit 858 mln SEK vs forecast 857 mln
* Says sees tough competition in U.S. cigars, low price Swedish snus continuing
(Adds company comment, detail)
STOCKHOLM, May 9 (Reuters) - Swedish moist snuff and cigar maker Swedish Match
Swedish Match has been seen profits slide for six straight quarters as low price brands have gained popularity in Swedish snus - tobacco in sachets or loose and placed under the lip - and in its cigar business, its biggest product areas.
In the snus and snuff segment, which makes up around 40 percent of sales and 60 percent of profit, the operating margin fell to 43.8 percent from 45.5 percent a year earlier, lower than the expected 44.3 percent and the lowest since the second quarter 2010.
The company introduced a discount cigar brand in the United States late last year to offset competitive pressure and while sales were flat for cigars, the margin for the segment - which includes chewing tobacco - fell to 38.8 from 39.2 percent.
This was above a forecast for a margin of 37.6 percent thanks to higher than average prices and strong volumes in U.S. chewing tobacco, helping shares to rise 3 percent in early trading to 223.70 crowns.
"For cigars in the U.S., Swedish Match expects the market to remain highly competitive during 2014," Swedish Match said in a statement.
"The expected faster growth of value priced products in Sweden is likely to imply some negative mix effects."
Operating profit fell to 858 million Swedish crowns ($132 million) against 872 million a year ago - excluding major one off items - and compared to a mean forecast of 857 million in a Reuters poll of analysts. ($1 = 6.5051 Swedish Crowns)
(Reporting by Stockholm Newsroom, editing by William Hardy)
((simon.c.johnson@thomsonreuters.com)(+46 8 700 1045)(Reuters Messaging: simon.c.johnson.reuters.com@reuters.net))
Keywords: SWEDISH MATCH
