Summary
Altria Group, Inc. reported net earnings attributable to Altria Group, Inc. of $2.48 billion for the nine months ended September 30, 2009, a decrease from $4.25 billion in the same period of 2008. This decline was significantly influenced by the spin-off of Philip Morris International Inc. (PMI) in 2008, which generated a substantial one-time gain in the prior year. Excluding discontinued operations, earnings from continuing operations increased slightly to $2.48 billion from $2.41 billion, driven by improved performance in cigarettes, financial services, and cigars segments, as well as the impact of the recently acquired UST LLC. The company also successfully raised $4.2 billion in long-term debt to finance the UST acquisition and continued its restructuring efforts, including the closure of a manufacturing facility. For the third quarter of 2009, net earnings attributable to Altria Group, Inc. were $882 million, a modest increase from $867 million in the prior year's third quarter. Diluted EPS from continuing operations remained stable at $0.42. The company continues to manage its debt profile, having issued significant long-term notes to fund the UST acquisition, and has suspended its share repurchase program to preserve financial flexibility. Altria's diverse segments, including cigarettes, smokeless products, cigars, wine, and financial services, are navigating varied market conditions, with cigarettes facing volume declines offset by pricing strategies, while smokeless products and cigars show growth potential. Altria also provided updated full-year 2009 guidance, narrowing its reported diluted EPS from continuing operations range to $1.53-$1.56 and emphasizing a 5%-7% growth in adjusted diluted EPS over 2008. This outlook accounts for higher tobacco excise taxes, investment in smokeless tobacco brands, cost reduction initiatives, and increased pension expenses.
Financial Highlights
49 data points| Revenue | $6.30B |
| Cost of Revenue | $2.03B |
| Gross Profit | $2.29B |
| Operating Income | $1.39B |
| Net Income | $882.00M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 2.07B |
| Shares Outstanding (Diluted) | 2.07B |
Key Highlights
- 1Net earnings attributable to Altria Group, Inc. decreased to $2.48 billion for the nine months ended September 30, 2009, from $4.25 billion in the prior year, primarily due to the PMI spin-off in 2008.
- 2Earnings from continuing operations increased slightly to $2.48 billion for the nine months ended September 30, 2009, from $2.41 billion in the prior year.
- 3Diluted EPS from continuing operations increased to $1.19 for the nine months ended September 30, 2009, from $1.15 in the prior year.
- 4Altria successfully acquired UST LLC in January 2009 for approximately $11.7 billion, consolidating its smokeless products and wine businesses.
- 5The company issued $4.2 billion in senior unsecured long-term notes in February 2009 to finance the UST acquisition.
- 6Altria suspended its $4.0 billion share repurchase program in September 2009 to preserve financial flexibility.
- 7Total net revenues increased by 19.3% to $17.54 billion for the nine months ended September 30, 2009, largely driven by the UST acquisition and higher cigarette pricing.