Summary
Altria Group, Inc. (MO) reported a solid first quarter for 2011, with net earnings attributable to Altria Group, Inc. increasing by 15.3% to $937 million, and diluted earnings per share (EPS) rising by 15.4% to $0.45 compared to the same period in 2010. This growth was driven by higher operating income across its segments, particularly in cigarettes and smokeless products, lower interest expenses, and a significant increase in earnings from its equity investment in SABMiller. The company reaffirmed its full-year 2011 EPS guidance, anticipating 6% to 9% growth over 2010 adjusted diluted EPS, though it cautioned about potential lumpiness in quarterly results due to trade inventory dynamics and ongoing economic pressures on consumers. Financially, Altria maintained a strong liquidity position with approximately $3.4 billion in cash and cash equivalents. The company's debt levels remained substantial at $12.2 billion, but its credit metrics, such as the debt-to-EBITDA ratio, were within covenant requirements. Altria's Board of Directors authorized a new $1.0 billion share repurchase program in January 2011, though no shares were repurchased under this program in the first quarter. The company also continued its dividend payments, with a 12.5% increase in total dividend payments compared to the prior year, reflecting its commitment to returning capital to shareholders.
Financial Highlights
46 data points| Revenue | $5.64B |
| Cost of Revenue | $1.79B |
| Gross Profit | $2.15B |
| Operating Income | $1.54B |
| Net Income | $937.00M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.45 |
| Shares Outstanding (Basic) | 2.08B |
| Shares Outstanding (Diluted) | 2.08B |
Key Highlights
- 1Net earnings attributable to Altria Group, Inc. increased 15.3% to $937 million ($0.45 per diluted share) for the first quarter of 2011, up from $813 million ($0.39 per diluted share) in the prior year.
- 2Operating income for the consolidated company increased by $109 million (7.6%) year-over-year, driven primarily by strong performance in the cigarettes and smokeless products segments.
- 3Earnings from the equity investment in SABMiller increased significantly, contributing $189 million pre-tax for the quarter, up from $138 million in the prior year.
- 4The company reaffirmed its full-year 2011 diluted EPS forecast to be in the range of $2.00 to $2.06, representing 6% to 9% growth over 2010 adjusted diluted EPS.
- 5Altria maintained robust liquidity with $3.432 billion in cash and cash equivalents at the end of the first quarter.
- 6The company's cigarettes segment saw a decline in shipment volume (down 6.4%) and retail share (down 1.2 share points), impacted by trade inventory movements and new product launch timing.
- 7A new $1.0 billion share repurchase program was authorized in January 2011, though no shares were repurchased under this program during the first quarter.