What was Altria's net earnings and EPS for the first half of 2010?

For the first six months of 2010, Altria Group, Inc. reported net earnings attributable to Altria Group, Inc. of $1.855 billion, or $0.89 per diluted share. This represents an increase from the $1.599 billion, or $0.77 per diluted share, reported for the same period in 2009.

How did the different segments perform?

The cigarettes segment saw higher net revenues due to increased pricing, while smokeless products experienced volume growth. The wine segment also reported increased net revenues and operating income, primarily driven by higher volume. The financial services segment's revenues and income decreased due to lower gains on asset sales.

What is the outlook for Altria in 2010?

Altria raised its full-year 2010 guidance for reported diluted EPS, projecting a range of $1.81 to $1.85. This upward revision reflects strong first-half business performance, higher projected earnings from operations, and net tax benefits from the reversal of tax reserves.

What is the impact of the UST acquisition on the company's financials?

The acquisition of UST, which closed in January 2009, contributed to higher volumes in the smokeless products segment. However, the company also incurred UST acquisition-related costs in the prior year, which impacted the comparability of results, though these costs were lower in the first half of 2010.

MO 10-Q Quarterly Report Q2 FY2010 — Revenue, Net Income, EPS

Summary

Altria Group, Inc. reported a net earning of $1.856 billion for the first six months of 2010, a significant increase from $1.600 billion in the same period of 2009. This growth was driven by higher pricing in the cigarettes segment, increased volumes in smokeless products, and a favorable tax rate due to the resolution of tax audits. The company also raised its full-year 2010 EPS guidance, indicating a positive operational outlook. Despite an overall revenue increase, the company saw a slight decrease in net revenues for the second quarter of 2010 compared to the prior year, primarily due to lower cigarette volumes and trade inventory shifts. The company continues to navigate regulatory complexities and litigation risks, particularly within its tobacco segments, while managing costs through various programs. Altria's investment in SABMiller also contributed positively to earnings.

Financial Highlights

49 data points

Beta

Revenue

$6.27B

0.4% Gross Margin

Net Income

$1.04B

0.2% Net Margin

EPS (Diluted)

$0.50

Total Assets

$35.24B

Cash & Equivalents

$854.00M

Free Cash Flow

-$1.78B

Financial Statements

Beta

Revenue	$6.27B
Cost of Revenue	$1.97B
Gross Profit	$2.37B
Operating Income	$1.53B
Net Income	$1.04B
EPS (Basic)	$0.50
EPS (Diluted)	$0.50
Shares Outstanding (Basic)	2.08B
Shares Outstanding (Diluted)	2.08B

Key Highlights

1Net earnings for the first six months of 2010 increased to $1.856 billion from $1.600 billion in the prior year.
2Diluted EPS for the six months ended June 30, 2010, was $0.89, up from $0.77 in the same period of 2009.
3Net revenues for the six months ended June 30, 2010, increased by 7.0% to $12.034 billion, driven by higher pricing in cigarettes and volume growth in smokeless products.
4Operating income increased to $2.959 billion for the six months ended June 30, 2010, up from $2.868 billion in the prior year.
5The company raised its full-year 2010 EPS guidance, reflecting strong first-half performance and net tax benefits.
6Cash provided by operating activities increased to $291 million for the first six months of 2010, compared to $135 million in the prior year.
7Altria paid $1.435 billion in dividends during the first six months of 2010, an increase from $1.324 billion in the prior year, reflecting a higher dividend rate.

ALTRIA GROUP, INC. Quarterly Report for Q2 Ended Jun 30, 2010

Summary

Financial Highlights

Key Highlights

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