Summary
Altria Group, Inc. reported strong financial performance for the nine months ended September 30, 2010. Net revenues increased by 5.1% to $18.4 billion, driven by higher pricing and increased volume in the smokeless products segment, partially offset by lower cigarette volumes. Operating income saw a significant increase of 11.1% to $4.7 billion, benefiting from lower asset impairment, exit, implementation, and integration costs compared to the prior year, and reduced acquisition-related costs. Net earnings attributable to Altria Group, Inc. rose by 20.4% to $2.99 billion, translating to diluted EPS of $1.43, up from $1.19 in the prior year. The company also increased its quarterly dividend by 11.8% year-to-date, reflecting a commitment to shareholder returns. The acquisition of UST continues to integrate well, contributing positively to the results, particularly in the smokeless products segment which saw substantial growth. The company's financial position remains robust, with total assets of $37.1 billion and total liabilities of $31.9 billion as of September 30, 2010. The company raised its full-year 2010 EPS guidance, signaling confidence in its ongoing operational performance and strategic initiatives. Key drivers for the improved performance include pricing strategies, cost management programs, and a favorable tax rate due to the resolution of certain tax matters.
Financial Highlights
48 data points| Revenue | $6.40B |
| Cost of Revenue | $1.99B |
| Gross Profit | $2.48B |
| Operating Income | $1.78B |
| Net Income | $1.13B |
| EPS (Basic) | $0.54 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 2.08B |
| Shares Outstanding (Diluted) | 2.08B |
Key Highlights
- 1Net revenues for the nine months ended September 30, 2010 increased 5.1% to $18.44 billion.
- 2Operating income increased 11.1% to $4.74 billion for the nine months ended September 30, 2010.
- 3Net earnings attributable to Altria Group, Inc. increased 20.4% to $2.99 billion for the nine months ended September 30, 2010.
- 4Diluted EPS increased 20.2% to $1.43 for the nine months ended September 30, 2010.
- 5The company increased its quarterly dividend by 11.8% year-to-date to $0.38 per share.
- 6Smokeless products segment saw significant growth, with a 13.4% increase in net revenues and a 94.0% increase in operating companies income for the nine months.
- 7Altria raised its full-year 2010 EPS guidance range.