Altria Group Inc.’s fourth quarter earnings rose 27% as margins improved and the company again reported strength at its smokeless tobacco unit.
Though results for the latest quarter were in line with analysts’ estimates, the tobacco giant warned 2011 will be a challenging year given stiff competition, possible new state-level excise taxes and pressures on consumer spending.
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Cigarette maker Altria Group Inc. plans to raise prices on its U.S. smokeless tobacco brands like Copenhagen, Skoal and Red Seal.For most brands the increase will be 10 cents a can, which cost on average $4.15 each at retail.Bill Phelps, a spokesman for the Richmond, Va., company, said Friday the company is always evaluating its strategies, when asked the reasons for the price increase.Earlier this month, the company’s Philip Morris USA announced it would raise its price of 8 cents a pack on most cigarette brands, such as Marlboro.Packs of Marlboro have an average retail price of $5.42, he said.Stifel Nicolaus analyst Christopher Growe said in a note earlier this week the price increase for cigarettes was above his estimates. Read more
Wine and tobacco products company Altria Group Inc. (MO: News ), Thursday reaffirmed its full-year earnings guidance and said it expects the first half of the year to be challenging, as compared to the latter half.The Richmond, Virginia-based company said it expects earnings of $1.78 – $1.82 per share for the full year, which includes estimated charges of $0.07 per share related to exit, integration and implementation costs, UST acquisition-related costs, and SABMiller plc special items. Read more
Altria’s MO robust first-quarter results confirm our thesis that its strong brand portfolio positions the firm at the top of the domestic tobacco industry. Our outlook remains unchanged, and we are maintaining our fair value estimate. Read more
Thousands of small lawsuits, remnants of a failed class action case, are turning into a lingering headache for the U.S. tobacco industry. Read more