Quantcast
Latest Stories

Marlboro maker Altria 2Q profit up 3 pct



In this Wednesday, July 17, 2013, photo, Marlboro cigarettes are on display in a CVS store in Pittsburgh. Altria reports quarterly earnings on Tuesday, July 23, 2013. AP

RICHMOND, Virginia — Marlboro maker Altria Group Inc. said Thursday its second-quarter profit rose about 3 percent as higher prices and lower expenses from a longstanding legal settlement offset a decline in cigarette sales.

The owner of the nation’s biggest cigarette maker, Philip Morris USA, also raised the lower end its full-year earnings guidance.

The Richmond, Virginia-based company earned $1.27 billion, or 63 cents per share, for the April-June period, up from $1.22 billion, or 60 cents a share, a year ago.

Excluding one-time items, earnings were 62 cents per share, missing Wall Street expectations by a penny.

Revenue, excluding excise taxes, decreased 2.5 percent to $4.5 billion. Analysts polled by FactSet expected $4.62 billion.

Cigarette volumes fell nearly 7 percent to 33.8 billion cigarettes compared with a year ago. Marlboro volumes fell more than 7 percent, volume for its other premium brands fell by nearly 11 percent, and volumes for discount cigarette brands like L&M increased nearly 4 percent,

Its share of the U.S. retail market rose 0.3 percentage points to 50.7 percent. Marlboro’s share of the U.S. market was flat at 43.7 percent.

The premium Marlboro brand has been under pressure from competitors and lower-priced cigarette brands as consumers face economic pressure and high unemployment.

Those economic challenges are in addition to the tax hikes, smoking bans, health concerns and social stigma that have made the cigarette business tougher.

The company has introduced several new products with the Marlboro brand, often with lower promotional pricing. They include special blends of both menthol and non-menthol cigarettes to try to keep the brand growing and to lure smokers away from its competitors. It has said it has a pipeline of innovative products to supplement the Marlboro brand in the future.

Altria and others are focusing on cigarette alternatives — such as electronic cigarettes, cigars, snuff and chewing tobacco — for future sales growth because the decline in cigarette smoking is expected to continue.

Volumes of Altria’s smokeless tobacco brands such as Copenhagen and Skoal rose more than 4 percent from a year ago. For the quarter, the company’s smokeless tobacco brands had 55 percent of the market, though smokeless tobacco is a tiny market compared with cigarettes.

Altria said inventory changes and retail share losses drove volumes for its Black & Mild cigars down 8 percent during the quarter.

Altria also owns a wine business, holds a voting stake in brewer SABMiller, and has a financial services division.

The company on Thursday also raised the lower end of its full-year adjusted earnings guidance by a penny to a range of $2.36 and $2.41.

During the latest quarter, Altria said it repurchased 3.7 million shares for a total cost of about $135 million as part of a previously announced $300 million share repurchase program, which it expects to complete by the end of 2013.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Altria Group Inc. , Marlboro , Marlboro cigarettes , Philip Morris USA , Richmond , second-quarter profit , Virginia



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Complex health care system for California’s elderly and poor explained
  • Malang the croc must regain strength before return to swamp, says mayor
  • Palace: Lacson’s version of Napoles testimony to be evaluated
  • Scientists eye iceberg bigger than Guam
  • Drilon: I’m not on Napoles’ list
  • Sports

  • Promoters Dela Hoya, Arum in talks for Pacquiao-Alvarez—report
  • Benzema guides Madrid to 1-0 win over Bayern
  • Suns’ Goran Dragic win NBA’s Most Improved Player award
  • Heat go up 2-0, hold off Bobcats 101-97
  • Ronaldo shakes off injury fears to play Bayern
  • Lifestyle

  • Gongs and southern dances star in a workshop at San Francisco Bayanihan Center
  • This woman ate what?
  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • Entertainment

  • Smithsonian wants photos, videos for ‘Day in the Life of Asian Pacific Americans’
  • What Garcia Marquez left behind
  • Has Ai Ai fallen deeply with ‘sireno?’
  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Business

  • How ‘one percent’ economic elite was uncovered
  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Cost-recovery provisions for affected gencos urged
  • Technology

  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • Obama to visit Filipino soldiers in Fort Bonifacio
  • Fil-Am youth conferences unite under one theme
  • Embassy advisory: Filipinos still need visas to enter US
  • No travel restriction to Mideast, DFA clarifies
  • PH-HK relations repaired, but families of victims still being courted
  • Marketplace