Tobacco.org

GUTHRIE: Lombard - The invisible woman ($$) 

Irene Rosenfeld, chief executive of US food group Kraft, is defined within British public life as a vacuity. She is an empty seat at the parliamentary committee at which she has thrice declined to make an appearance. She is a negative space, absent from non-occurring press conferences at the historic Bournville plant acquired via the £11.6bn purchase of Cadbury last year.

It is not necessary for Ms Rosenfeld to show up for the hearings of the business select committee. It is quite possible for her to send a stonewalling lawyer in the form of Kraft general counsel Marc Firestone. This enables her, quite logically, to bracket hostility to Kraft concerning the badly managed Cadbury takeover as a little local difficulty in the UK that will die down in time.

But while an appearance is unnecessary, it would have been advisable. Mr Firestone, formerly a lawyer at tobacco company Philip Morris, wriggled and swerved unconvincingly before an angry committee on Tuesday, attempting to justify Ms Rosenfeld’s absence. Some of the questioning was likely to be “rancorous”, he said.

Jump to full article »

How Mac N' Cheese Is Like A Cigarette  

How Mac N' Cheese Is Like A Cigarette Posted by: Cathy Arnst on April 30

You would never give a child a cigarette. Or a drink, or a snort of cocaine. But everyday we American parents are giving our children something almost as addictive—meals laden with sugar, salt and fat. That mac n’cheese we all think is the only thing our child will eat is priming them for a lifetime of “conditioned hypereating.” That is, eating that is excessive, out of control and has nothing to do with satisfying hunger.

This theory of hypereating is laid out in a new book, The End of Overeating, by Dr. David Kessler, a renowned scientist and former FDA director who set out some seven years ago to figure out the reasons behind the obesity crisis besetting the nation.

Jump to full article »

Financial services' reps on par with tobacco, finds study  

The reputation of the financial services industry fell to its lowest point in a decade, according to the 10th Annual Harris Interactive Reputation Quotient (RQ) survey. The industry shares an 11% positive rating with the tobacco industry.

The RQ survey focuses on six areas that influence reputation and consumer behavior: social responsibility, emotional appeal, financial performance, products and services, vision and leadership, and workplace environment. A score above 80 reflects an excellent reputation. Scores for many of the financial services and auto companies on the list fell considerably below that rating. . . .

“Our study indicates just how hard it will be for many financial services firms to regain the trust of both the public at large and their customers,” said Robert Fronk, Senior Vice President, Senior Consultant, Reputation Strategy at Harris Interactive, in a statement. . . .

Overall, the survey found that 88% of American said the reputation of corporate America is “not good” or “terrible.” However, there were bright spots, including Johnson & Johnson, which came in at number one for the eighth time in the study's history. Sony jumped from number 16 to number three (number two was Google). Rounding out the top six were Coca-Cola, Kraft, and Amazon.com. These six companies scored above 80.

Jump to full article »

• Corrected: AIG bumped from Dow, replaced by Kraft 

"Apart from being a leader in the food industry, Kraft is a great defensive stock too. . . .

Dow Jones Indexes said it was adding Kraft as the Dow had no representation in food products. The last stand-alone food company in the index was General Foods, which was removed in 1985.

Kraft's spokesman Michael Mitchell said the company was "thrilled that Kraft will be joining the many iconic companies that make up the Dow Jones Industrial Average. Joining the stocks of the Dow Jones index is a wonderful affirmation of our leadership in the food sector."

The changes won't cause any disruption in the level of the index, Dow Jones Indexes said.

The last component change in the Dow occurred on February 19, 2008, when tobacco company Altria Group and Honeywell were replaced by Chevron and Bank of America .

Jump to full article »

• AIG Bumped From Dow, Replaced By Kraft  

A week of pain and ignominy for American International Group Inc. <AIG.N> took another hard turn on Thursday when it got booted from the Dow Jones industrial average, ending the shortest term any company has spent in the blue-chip index since the Great Depression.

Taking its place come Monday's opening bell is Kraft Foods Inc. <KFT.N>, the first pure food company in the index in 23 years. Emblematic of the current market turmoil, the maker of such comfort foods as Oreo cookies and Kraft Cheese was apparently seen as a better fit for the world's most-watched stock index than another risky financial company. . . .

Kraft's spokesman Michael Mitchell said the company was "thrilled that Kraft will be joining the many iconic companies that make up the Dow Jones Industrial Average. Joining the stocks of the Dow Jones index is a wonderful affirmation of our leadership in the food sector."

The changes won't cause any disruption in the level of the index, Dow Jones Indexes said.

The last component change in the Dow occurred on February 19, 2008, when tobacco company Altria Group <MO.N> and Honeywell <HON.N> were replaced by Chevron <CVX.N> and Bank of America <BAC.N>.

Jump to full article »

Altria’s former CEO weighs in on UST - Postcards 

Remember Geoff Bible, the swashbuckling Aussie who led Philip Morris until 2002? I ran into him at the U.S. Open just as rumors were flying that Altria (MO), as the the tobacco giant is now known, was about to buy UST.

Now Altria has announced its $10.3 billion deal to acquire UST, the smokeless tobacco leader that markets Copenhagen and Skoal. And Bible, who is still an Altria shareholder, offers his take: "In principle, UST is a savvy deal, especially given the slowing U.S. cigarette market. I'm too removed from the businesses these days to talk about price, but they are clever managers. They do not do dumb things, do their homework thoroughly, and have a great balance sheet. They ought be able to wring out very good revenue and overhead synergies."

Actually, the U.S. cigarette business is more than slow. It's declining-at an accelerating rate, say analysts. Actually, the U.S. cigarette business is more than slow. It's declining-at an accelerating rate, say analysts. Perhaps this is because diehards are kicking the habit? Newsflash: Bible, for one, finally quit. . . .

"I'm old," Bible told me, suggesting that it's time. He's 71, still feisty, and he appears quite fit.

Jump to full article »

Altria Profit Surpasses Estimates on Higher Prices (Update5) 

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. Reports 2007 Third-Quarter Results 

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.

Jump to full article »

Altria's Net Falls 8.4% On Kraft Spinoff 

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.

Jump to full article »

Altria Group's quarterly profit falls more than 8%; revenue up  

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.

Jump to full article »

Altria to close center in S.A., lay off 42 

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

Jump to full article »

Altria Group to Spin Off International Tobacco Unit (Update7) 

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.

Jump to full article »

Altria's Net Income Falls 18% On Production Consolidation  

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.

Jump to full article »

• Altria Holders May Back Off on Push to Split Tobacco (Update1) 

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.''

Jump to full article »

Kraft Shares Rise After Report of Investment by Icahn (Update3) 

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

Jump to full article »