Tobacco.org

• Two tobacco giants merge for NZ market  

Scandinavian Tobacco Group has been given the green light by the Commerce Commission to merge its New Zealand businesses with importer Swedish Match.

The clearance is subject to the merged entity divesting the Willem cigar brand.

The new company will be controlled by Scandinavian Tobacco Group (STG), which will hold 51% of the shares. The remaining 49% of the shares will be held by Swedish Match (SM).

STG and SM manufacture and supply a range of tobacco products, including cigarettes, cigars, pipe tobacco, roll-your-own fine cut tobacco and accessories in the USA, Europe and the Asia Pacific region.

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Robbins Umeda LLP Announces Investigation of Schweitzer-Mauduit International, Inc. 

Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by certain officers and directors at Schweitzer-Mauduit International, Inc. ("Schweitzer " or the "Company") (NYSE: SWM). Schweitzer manufactures and sells paper and reconstituted tobacco products to the tobacco industry, as well as specialized paper products for use in other applications. The Company was founded in 1995 and is headquartered in Alpharetta, Georgia.

Robbins Umeda LLP's investigation concerns whether the Company's directors and officers caused the Company to issue materially false and misleading statements. Specifically, the investigation will determine whether these directors and officers misrepresented the strength of Schweitzer's competitive position in the United States and its ability to withstand European competition.

The alleged material misstatements and omissions may have caused Schweitzer's stock to trade at artificially inflated prices

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Robbins Umeda LLP Announces Investigation of Schweitzer-Mauduit International, Inc. 

Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by certain officers and directors at Schweitzer-Mauduit International, Inc. ("Schweitzer " or the "Company") /quotes/comstock/13*!swm/quotes/nls/swm (SWM 45.88, +0.89, +1.98%) . Schweitzer manufactures and sells paper and reconstituted tobacco products to the tobacco industry, as well as specialized paper products for use in other applications. The Company was founded in 1995 and is headquartered in Alpharetta, Georgia.

Robbins Umeda LLP's investigation concerns whether the Company's directors and officers caused the Company to issue materially false and misleading statements. Specifically, the investigation will determine whether these directors and officers misrepresented the strength of Schweitzer's competitive position in the United States and its ability to withstand European competition.

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Schweitzer-Mauduit Clarifies Customer Contract  

Schweitzer-Mauduit International, Inc.'s (NYSE: SWM) contract with Philip Morris USA, Inc. (Philip Morris USA) specifies that Schweitzer-Mauduit will serve as the sole supplier of the co-developed, on-line banded cigarette paper technology (MOD) used to produce low ignition propensity (LIP) cigarettes. Schweitzer-Mauduit is, and has been for many years, a strategic partner with Philip Morris USA. Philip Morris USA is able to develop or explore alternatives to their MOD technology for their LIP needs and has informed us of their intent to do so on a volume of their requirements that is not material to SWM's ongoing supply of MOD product. The existing agreement does not address either party's rights to any technology beyond MOD.

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• Philip Morris decision hurts supplier's stock  

A few words about a giant -- Philip Morris USA, for instance -- can echo in unexpected corners of Wall Street.

After the company that supplies Philip Morris with its cigarette paper revealed the tobacco giant is buying a small amount of paper from another firm, its stock lost more than a third of its value.

Wall Street decided Thursday and yesterday that Georgia-based Schweitzer-Mauduit International was worth $315 million less than it had thought, as versions of the story hit traders' screens.

Philip Morris buys a bit more than $80 million a year of Schweitzer's papers, a patented design that feature tiny bands that extinguish cigarettes when they are left to smolder.

Still, Wall Street's reaction to Schweitzer's quiet mention that Philip Morris would buy small amounts of printed paper from an importer underscored the Henrico County-based cigarette-maker's dominance of the U.S. tobacco market.

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Schweitzer-Mauduit Announces Supply Agreement  

chweitzer-Mauduit International, Inc. (NYSE: SWM - News) today announced the formalization of a supply agreement with British American Tobacco Australia Limited (BATA) for papers to produce Lower Ignition Propensity (LIP) cigarettes for the Australian market.

The company is pleased to have formed a supply partnership with BATA. The multi-year supply agreement covers papers that utilize Schweitzer-Mauduit's Alginex® water-based technology, a proprietary process. Mr. Otto Herbst, SWM Chief Operating Officer commented, "We are very satisfied to have reached this agreement with BATA and believe this is a significant step in the strengthening of our global partnership."

Australia has passed legislation that requires all cigarettes manufactured in or imported into Australia to be LIP compliant effective March 23, 2010.

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• UPDATE 2-Swedish Match posts higher Q2 profit, shares rise  

* Pretax profit rose 38 percent to 791 million crowns

* Expects H2 sales, operating profit to beat 2008

* Key snuff margin drops, but cigar margin shines

* CEO says Q2 cigar margin not sustainable

* Shares up 3.0 percent

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Swedish Match agrees to sell South African operations to Philip Morris International  

Swedish Match AB [publ] announced today that it has reached an agreement to sell its South African operations, Swedish Match South Africa (Proprietary) Limited (“SMSA”) to Philip Morris International [NYSE/Euronext Paris: PMI] (“PMI”) for a purchase price amounting to 1.75 billion ZAR.

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• Cuban Cigars JFK Loved May End ‘Forbidden Fruit’ Status in U.S.  

As President Barack Obama moves to ease restrictions on trade with Cuba, cigar lovers are savoring the prospect of legally lighting up a smoke that has long required a black- market connection and a willingness to flout the law. . . .

The possible end to the 47-year-old embargo on Cuba trade has intensified a legal and lobbying fight between cigar makers Swedish Match AB of Stockholm and Imperial Tobacco Group Plc of Bristol, England. Each wants exclusive rights to sell Cuban-made brands in the U.S., the world’s largest market for premium cigars.

Swedish Match sells cigars in the U.S. made in Honduras and the Dominican Republic under Cuban brand names. It bought the brands from families that fled Cuba after Fidel Castro seized their cigar companies in the 1960s. Imperial distributes Cuban- made cigars under many of the same names to the rest of the world through an agreement with the Cuban government monopoly, Cubatabaco.

“Before serious commerce resumes, this is going to have to be resolved,” said Robert Muse, a Washington lawyer who advises clients on Cuba-related issues.

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Schweitzer-Mauduit International, Inc. Announces Closure of a French Mill and Other Business Developments Impacting Full-Year Earnings Guidance 

Schweitzer-Mauduit International, Inc. (NYSE: SWM) announced today expected improvement in first quarter 2009 financial results and the planned closure of its finished tipping paper production facility in France. . . .

Mr. Frederic Villoutreix, Chairman of the Board and Chief Executive Officer, commented that, "We believe the expected improvement in first quarter results validates our strategy to revitalize our base tobacco-related paper business while aggressively growing the franchises for our higher value lower ignition propensity cigarette paper and reconstituted tobacco leaf products. The divestiture action being announced today, although regrettable in terms of the impact on the employees and communities affected, further advances this strategy and highlights our resolve to rationalize our global manufacturing footprint and re-focus resources to achieve leading positions in core product categories that provide opportunity for competitive advantage. Following the divestiture of our finished tipping paper facility in France, all of Schweitzer-Mauduit's focus will be on product lines that represent core technologies and in which we hold a number one or two world-wide market position, whether measured by share of the market or major customer's requirements."

Schweitzer-Mauduit International, Inc. is a diversified producer of premium specialty papers and the world's largest supplier of fine papers to the tobacco industry.

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Schweitzer-Mauduit Announces Fourth Quarter 2008 Results 

Schweitzer-Mauduit International, Inc. (NYSE: SWM) today reported a fourth quarter 2008 net loss of $6.8 million compared to net income of $2.5 million during the fourth quarter of 2007. The loss per share was $0.44 compared to diluted earnings per share of $0.16 in the prior-year quarter. Restructuring and impairment expenses decreased earnings during the fourth quarter of 2008 by $13.8 million before taxes, or $0.58 per share. In 2008, fourth quarter earnings without restructuring and impairment expenses were $0.14 per share, a decrease of 2 cents relative to the diluted earnings excluding restructuring and impairment expense of $0.16 per share for the fourth quarter of 2007.

Frederic Villoutreix, Chairman of the Board and Chief Executive Officer, commented that, "Schweitzer-Mauduit's results for the fourth quarter of 2008 contained items that offset the underlying continued improvement in our business. These items included asset impairment charges, which are included with restructuring expenses, a deferred income tax effect from a reorganization of legal entities and severance expenses associated with management changes primarily in France. We continued to realize earnings improvement from increased sales volumes for reconstituted tobacco leaf and cigarette paper for lower ignition propensity cigarettes, and we began to realize favorable foreign currency impacts and a lower level of inflationary cost increases.

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Schweitzer-Mauduit Announces Senior Management Changes 

Schweitzer-Mauduit International, Inc. (NYSE: SWM) today announced the following new management position and changes effective today:

Peter J. Thompson, age 46, current Vice President - Strategic Planning, will be assuming the new position of Treasurer, Chief Financial and Strategic Planning Officer, reporting to Frederic Villoutreix, Chairman of the Board and Chief Executive Officer. Mr. Thompson had served as Chief Financial Officer and Treasurer from August 2006 to August 2008 and as Vice President - Strategic Planning from August 2008 to the present. Pete has over 12 years of service with Schweitzer-Mauduit. Previously, he was President - U.S. Operations from November 1998 to August 2006. As part of the restructuring of its financial management organization, the Company also recently created the positions of Corporate Treasury Director, located in Alpharetta, and Finance and Treasury Director - Asia, located in the Company's new Philippine Regional Operating Headquarters.

Mr. Thompson is replacing Mr. Torben Wetche who joined the Company in August 2008 as Chief Financial Officer and Treasurer.

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Schweitzer-Mauduit International, Inc. Announces Senior Management Addition: Senior Corporate Vice-President- Global Lip 

Schweitzer-Mauduit International, Inc., (NYSE: SWM) today announced the establishment of the new position of Senior Corporate Vice-President -- Global LIP and the appointment of Mr. Dean M. McCaskill to this position reporting to Otto Herbst, Chief Operating Officer.

In announcing the decision to establish this position, Frederic Villoutreix, Chairman of the Board and Chief Executive Officer commented, "As the demand for paper used in Low Ignition Propensity (LIP) cigarettes grows from North America into Europe and globally into other regions of the world, we have determined that we need to establish a designated business unit to satisfy market demands. This new role will be responsible for the world-wide manufacturing facilities and developing and implementing our sales and marketing plans for this product group. In hiring Dean, we believe we have recruited the person with the necessary skills and international background to reach our global LIP objectives to become the leading innovator and supplier of these papers to the tobacco industry."

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Schweitzer-Mauduit International, Inc. Announces Senior Management Changes: Chief Operating Officer and President, the Americas 

Following the November 11th announcement of the retirement of Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer on December 31, 2008 and Frederic Villoutreix named his successor on January 1, 2009, Schweitzer-Mauduit International, Inc., (NYSE: SWM) today announced these additional senior management changes also effective January 1, 2009:

Otto R. Herbst, President, the Americas, will become Chief Operating Officer reporting to Frederic Villoutreix, Chairman of the Board and Chief Executive Officer. Mr. Herbst, age 49, has been President, the Americas since August, 2006. He joined SWM in April, 1999 as President, Brazilian Operations.

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Schweitzer-Mauduit Announces Third Quarter 2008 Results 

Schweitzer-Mauduit International, Inc. (NYSE: SWM) today reported third quarter 2008 net income of $6.7 million compared with a net loss of $4.3 million during the third quarter of 2007. Diluted earnings per share were $0.43 compared with a diluted loss per share of $0.27 in the prior-year quarter. Restructuring expenses decreased earnings per share during the third quarters of 2008 and 2007 by $0.11 and $0.73, respectively. Excluding restructuring expenses, earnings per share increased 17 percent to $0.54 for the third quarter of 2008 from $0.46 during the third quarter of 2007.

Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer, commented that, "The third quarter 2008 financial results for Schweitzer-Mauduit improved as expected relative to both the second quarter of 2008 and the third quarter of 2007. Earnings increased primarily due to higher sales volumes for reconstituted tobacco leaf, or RTL, and cigarette paper used in lower ignition propensity, or LIP, cigarettes. We also benefited from the January 2008 purchase of the 28 percent minority interest of LTR Industries, S.A., or LTRI. Operation of the rebuilt paper machine at our Papeteries de Mauduit, or PdM, mill in France, improved during the third quarter, but still contributed to an increase in production cost versus last year. We continue to experience significant inflationary cost increases, especially energy, and unfavorable currency impacts. As a result of increased earnings benefiting cash generation and continued reductions in capital spending, we lowered debt during the third quarter."

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