Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Classified Sites

The Canadian Press - ONLINE EDITION

Marlboro maker Altria's 4Q profit falls on lower sales, charges related to debt buyback

FILE - In this Wednesday, Oct. 23, 2013, file photo, Marlboro Gold and other Marlboro varieties of cigarettes are displayed in a Little Rock, Ark., store. Altria Group reports quarterly earnings on Thursday, Jan. 30, 2014. (AP Photo/Danny Johnston)

Enlarge Image

FILE - In this Wednesday, Oct. 23, 2013, file photo, Marlboro Gold and other Marlboro varieties of cigarettes are displayed in a Little Rock, Ark., store. Altria Group reports quarterly earnings on Thursday, Jan. 30, 2014. (AP Photo/Danny Johnston)

RICHMOND, Va. - Altria Group Inc.'s fourth-quarter profit dropped 56 per cent as the Marlboro maker sold fewer cigarettes and recorded charges related to paying off debt early.

Its adjusted earnings and revenue narrowly missed Wall Street expectations, and its shares slipped in premarket trading.

The owner of the nation's biggest cigarette maker, Philip Morris USA, posted earnings Thursday of $488 million, or 24 cents per share. That's down from $1.1 billion, or 55 cents a share, in the year-ago period.

Excluding one-time items, earnings were 57 cents per share, missing Wall Street expectations by a penny.

Altria Group Inc., based in Virginia, said that revenue, excluding excise taxes, fell 1 per cent to $4.4 billion as higher prices helped offset a decline in volumes. Analysts polled by FactSet expected $4.5 billion.

The company also said Thursday it expects 2014 full-year adjusted earnings between $2.52 and $2.59 per share. Analysts expect $2.57 per share.

Cigarette volumes fell about 6 per cent to 31.8 billion cigarettes compared with a year ago. Adjusting for trade inventory changes, cigarette volumes fell 4 per cent, on par with the total industry decline.

Marlboro volumes fell 5.7 per cent, while volume for its other premium brands fell by more than 11 per cent, and volumes for discount cigarette brands like L&M increased 2 per cent.

Its share of the U.S. retail market rose 0.3 percentage points to 50.7 per cent. Marlboro's share of the U.S. market rose 0.2 percentage points to 43.7 per cent.

The Marlboro brand has been under pressure from competitors and lower-priced cigarette brands amid economic uncertainty and high unemployment.

That's on top of the tax hikes, smoking bans and a social stigma that have made the cigarette business tougher.

Altria and others are focusing on cigarette alternatives — such as electronic cigarettes, cigars, snuff and chewing tobacco — for future sales growth because the decline in cigarette smoking is expected to continue.

Volumes of Altria's smokeless tobacco brands such as Copenhagen and Skoal fell 4.3 per cent from a year ago. Adjusting for one less shipping day and trade inventory changes, Altria says its smokeless volumes grew about 5 per cent. For the quarter, the company's smokeless tobacco brands had about 55 per cent of the market, though smokeless tobacco is a tiny market compared with cigarettes.

Volumes for its Black & Mild cigars rose 8.5 per cent during the quarter.

Altria Group Inc. also owns a wine business, holds a voting stake in brewer SABMiller, and has a financial services division.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Submit a Random Act of Kindness
Why Not Minot?
Welcome to Winnipeg

Social Media