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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.

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