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Volumes of its smokeless tobacco brands such as Copenhagen and Skoal increased about 10 percent. Excluding excise taxes, revenue from its smokeless tobacco business grew nearly 7 percent to $391 million on higher prices. For the quarter, the company's smokeless tobacco brands had 55.5 percent of the market, which is tiny compared with cigarettes. Volume for its Black & Mild cigars fell about 6 percent during the period. But revenue excluding excise taxes rose 26 percent to $90 million as it raised prices and spent less money promoting the brand. Altria also owns a wine business and holds a voting stake in brewer SABMiller. Altria has been forced to cut costs as tax hikes, smoking bans, health concerns and social stigma make the cigarette business tougher. During the third quarter, the company said it completed a multi-year cost savings program, exceeding its goal of reducing costs by $1.5 billion between 2007 and 2011 compared with 2006. Last quarter the company rolled out a plan to cut $400 million in "cigarette-related infrastructure costs" by the end of 2013 in advance of anticipated cigarette volume declines. Altria said the restructuring charges in connection with the program totaled 7 cents per share in the fourth quarter. For the full year, the company said it earned $3.39 billion, or $1.64 per share, in 2011 compared with $3.9 billion, or $1.87 per share, in the previous year. It said its adjusted earnings for the year were $2.05 per share. Cigarette volumes for the year fell about 4 percent to 135.1 billion cigarettes, largely on declines from Altria's premium brands. Marlboro ended the year with a 42 percent share of the U.S. retail market, down 0.6 points from a year ago. Overall the company lost 0.8 points of market share to end up with 49 percent of the retail market. Full-year smokeless tobacco volumes increased more than 1 percent to 734.6 million cans or packs, and cigar volumes were stable at 1.25 billion units. Altria also said it forecast 2012 full-year adjusted earnings between $2.17 and $2.23 per share.
[Associated
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