Email
Password
(Forgot Password?)
Altria Group Inc., the world's largest tobacco company, said third-quarter profit rose more than analysts anticipated on higher cigarette prices and sales of the top-selling Marlboro brand, spurring the company to raise its forecast for the year.
Profit adjusted for Altria's spinoff of Kraft Foods Inc. increased 19 percent to $2.63 billion, or $1.24 a share, beating the average estimate of analysts by 7 cents. Revenue rose 8.9 percent to $19.2 billion, New York-based Altria said today in a statement.
Jump to full article »
Altria Group, Inc. (NYSE: MO) today announced third-quarter diluted earnings per share from continuing operations of $1.24, up $0.19 or 18.1% versus the prior year, including favorable tax items of $0.05 per share and charges of $0.02 per share for asset impairment, exit and implementation costs, as well as other items detailed on the attached Schedule 7.
"In the third quarter, we continued to witness improvement in our business fundamentals, which generated robust earnings growth," said Louis C. Camilleri, chairman and chief executive officer of Altria Group, Inc. "In addition, we took numerous steps to accelerate our growth by investing behind product innovation and announcing our intention to pursue a further restructuring of our company." . . .
On August 29, the Board of Directors of Altria Group, Inc. announced its intention to pursue the spin-off of PMI to Altria's shareholders. The Board anticipates that it will be in a position to finalize its decision and announce the precise timing of the spin-off at its regularly scheduled meeting on January 30, 2008.
In addition to a final determination by the Board, the spin-off of PMI will be subject to the receipt of a favorable ruling from the Internal Revenue Service, the receipt of an opinion of tax counsel, the effectiveness of a registration statement with the U.S. Securities and Exchange Commission (SEC), as well as the execution of several inter-company agreements and the finalization of other matters.
On September 27, PMI filed with the SEC a preliminary registration statement on Form 10 in preparation for its potential spin-off from Altria. In addition, Altria submitted a private letter ruling request to the Internal Revenue Service. . . .
As of September 30, 2007, Altria Group, Inc. owned 100% of Philip Morris International Inc., Philip Morris USA Inc. and Philip Morris Capital Corporation, and approximately 28.6% of SABMiller plc.
Altria Group Inc. posted an 8.4% decline in third-quarter net income, despite increases in its domestic and international tobacco business, reflecting the spinoff of Kraft Foods Inc. The parent of cigarette maker Philip Morris raised its forecast for 2007 earnings.
Altria, which plans to spin off its international tobacco operation next year, reported net income of $2.63 billion, or $1.24 a share, compared with $2.88 billion, or $1.36 a share, a year earlier. The latest results included a five-cent gain on tax items and two-cent charge for asset impairment and restructuring. Year-earlier figures included $661 million in earnings from discontinued operations, reflecting results from Kraft.
Altria Group Inc. said Wednesday third-quarter profit fell more than 8%, hit by charges and continuing declines in U.S. cigarette volume, but the blue-chip tobacco titan nonetheless upped its full-year earnings outlook.
Altria, part of the Dow Jones Industrial Average, said it earned $2.63 billion, or $1.24 a share, down from $2.88 billion, or $1.36 a share, in the year-ago period.
Adjusted to exclude various items, the company said it would have earned $1.21 a share, good enough for a 13% gain. Revenue came in at $19.21 billion, up nearly 9%, with some help from currency translations.
Altria Group announced Friday it will close its San Antonio service center, laying off 42 employees by the end of next year.
The parent company of Phillip Morris said it will shutter the site in December 2008 "to reduce costs and improve efficiencies," according to spokeswoman Lisa Gonzalez.
The San Antonio work will shift to Richmond, Va., and Buenos Aires, Argentina
Altria Group Inc., the world's largest tobacco company, plans to spin off Philip Morris International after being pressured by investors who want faster overseas growth and less risk from U.S. smokers' lawsuits.
A final decision on the timing will be announced at a board meeting Jan. 30, Altria said today in a statement. The company also boosted its dividend 8.7 percent to 75 cents a share.
Altria Group Inc. on Wednesday posted an 18% drop in second-quarter net income amid charges for the closure of a North Carolina factory tied to its plan to move cigarette production for foreign markets to Europe from the U.S.
Altria also lowered its 2007 earnings-per-share forecast, while its Philip Morris International unit announced the $1.1 billion purchase of an additional 30% stake in its Mexican tobacco joint venture.
The parent of Marlboro cigarette maker Philip Morris reported net income of $2.22 billion, or $1.05 a share, compared with $2.71 billion, or $1.29 a share, a year earlier. On a continuing operations basis, adjusted earnings came to $1.15 a share, down from $1.05. Analysts surveyed by Thomson Financial had forecast, on average, earnings, excluding items, of $1.13 a share.
Altria Group Inc. Chief Executive Officer Louis Camilleri said in April he'd consider calls from shareholders to split the world's largest cigarette maker in two. Now investors may not want him to.
In March, the company had spun off its 89 percent stake in Kraft Foods Inc. Speculation grew that its international tobacco division, growing faster than the U.S. cigarette operations, would be spun off next to further unlock shareholder value.
Altria, which will probably report an 8 percent increase in second-quarter profit tomorrow, now may be better off taking on debt and buying back stock, some analysts and investors said.
``If you had asked me two years ago, I'd say spin off international,'' said Brian Barish, who oversees $10 billion, including 3 million Altria shares, as president of Cambiar Investors LLC in Denver. ``But now I'm decidedly mixed.''
Shares of Kraft Foods Inc., the world's second-largest foodmaker, rose 3.1 percent after the Wall Street Journal reported that activist investor Carl Icahn bought shares in the company.
The stock increased $1.09 to $35.89 at 4:24 p.m. in composite trading on the New York Stock Exchange. The Journal said today that Icahn had acquired an undetermined stake in Kraft, citing people familiar with the situation.
Chief Executive Officer Irene Rosenfeld has also agreed to meet with billionaire investor Nelson Peltz next week, the Journal said. Rosenfeld, who took charge of Kraft a year ago, may be pressured by investors to shed slower-growing units that may include Post cereal, analysts said.
``Obviously Kraft has a portfolio of extraordinarily valuable brands,'' said Thomas Russo
Altria Group Inc., the world's largest cigarette maker, will close its North Carolina factory and increase European production to save $335 million a year by 2011.
The shutdown of the plant in Cabarrus County will result in a one-time charge of $325 million in the second quarter, Altria said today in a statement.
The New York-based tobacco company may be preparing to spin off its Philip Morris International unit, analysts and investors said. Factories in Europe will take over production of Marlboros and other cigarettes bound for Japan and the Middle East currently being made in North Carolina. All of Altria's U.S. output will be shifted to Richmond, Virginia.
``It is the first logical step to start the process of splitting the company in two,''
Tobacco firm Altria Group lit up Wall Street on Tuesday when the company, which makes Marlboro cigarettes, among other brands, told investors that it's shuttering a manufacturing plant in Cabarrus, N.C., as it moves U.S.-based cigarette production for non-U.S. markets to Europe. Stock watchers think the strategic move could signal that the company is readying itself to spin off its Philip Morris International unit.
Altria said it expects to be able to offer positions in Richmond, Va., to most of the 2,500 North Carolina-based hourly employees and many salaried employees. Those workers displaced by the changes, the company said, will be eligible for three to 20 months' severance pay and benefits.
But Wall Street cares about profits, not people, so what's the impact of the move on Altria's bottom line? The company said it expects cost savings
Kraft Foods Inc. Northfield, Ill. Board of directors; audit committee; nominating and governance committee Stock and board fees worth about $489, 000 in 2005-2007 Makes processed food, seeks healthier products to combat obesity and diabetes.
Todd Sullivan submits: There were a couple of very important items discussed and disclosed at Altria Group's (MO) annual meeting today. Here they are with opinion.
CEO Camilleri:
Over the next several months, we will continue to carefully and diligently examine the benefits of a spin-off of Philip Morris International [PMI] and other possible value-enhancing options to decide the optimal long-term strategic course to follow. . . .
PM USA continues to be the only major cigarette manufacturer supporting regulation of the tobacco industry by the U.S. Food and Drug Administration (FDA). This February, legislation was introduced in the U.S. Congress that would grant the FDA comprehensive regulatory authority over all tobacco products sold in the United States. We believe that this proposed legislation offers the prospect of effectively reducing harm and providing real solutions to the many complex issues involving tobacco.
Altria and Philip Morris USA (PM USA) believe regulation of tobacco products by the Food and Drug Administration [FDA] would establish a comprehensive national tobacco policy that could potentially create a competitive framework within which manufacturers are focused on reducing the harm tobacco use causes. The companies believe regulation would also bring predictability and clear standards to the tobacco industry in the United States.
ria Group, Inc. (NYSE: MO) held its 2007 Annual Meeting of Shareholders here today, and its chairman and chief executive officer Louis C. Camilleri told an audience of approximately 200 shareholders that the company remains as committed as ever to meaningfully enhance long-term shareholder value.
"Over the next several months, we will continue to carefully and diligently examine the benefits of a spin-off of Philip Morris International and other possible value-enhancing options to decide the optimal long-term strategic course to follow," Mr. Camilleri said. "Once a decision has been made, we will promptly communicate it."
"The highlight of the past year was undoubtedly the spin-off of Kraft Foods, which we completed on March 30," Mr. Camilleri said. "Achievements on the litigation front over the past year were particularly noteworthy, and confirmed our successful record in the appellate courts."
Altria Group Inc. won't rush to spin off its international tobacco unit while studying options to increase the share price, its chief executive officer said.
``This decision is for the next 50 years,'' not ``the next 50 days or the next five years,'' Louis Camilleri said today at Altria's annual meeting in East Hanover, New Jersey.
Altria, the world's largest traded tobacco company, will consider separating the international and U.S. tobacco units over the next several months, Camilleri said. The move, sought by some investors, would allow the international division to buy more competitors and repurchase shares.
``Altria's board has been very cautious,'' said Brian Barish, who oversees $10 billion, including 3 million Altria shares, at Cambiar Investors LLC in Denver. The spinoff ``may be a 2008 event,'' he said.