PM USA Loses Volume, Gains Share

Source from:  tr.itsmyiq.com Aug 1, 2008 08/04/2008

PM USA's domestic cigarette shipments during the second quarter, at 43.6 billion, were 4.5 per cent lower than those of the second quarter of last year; or about 3.5 per cent down when adjusted for changes in trade inventories. The company estimates that industry cigarette shipments declined by about 4.0 per cent during the second quarter. During the first half of 2008, PM USA's domestic cigarette shipments, at 83.7 billion, were down by 2.9 per cent on those of the equivalent period of last year; or by about 3.5 per cent when adjusted for changes in trade inventories. For the full-year 2008, the company estimates that industry cigarette shipments will fall by about 3.0-3.5 per cent. Shipments of PM USA's focus brands fell by 4.3 per cent to 42.6 billion during the second quarter, with Marlboro down 2.9 per cent to 36.7 billion, Parliament down 10.6 per cent to 1.3 billion, Virginia Slims down 12.4 per cent to 1.6 billion and Basic down 13.1 per cent to 3.0 billion. Shipments of other brands were down by 11.3 per cent to 1.0 billion. Despite these shipment declines, PM USA's market share climbed 0.5 percentage points to 51.0 per cent. The market share of the company's focus brands increased by 0.6 percentage points to 49.7 per cent, with Marlboro's share up 0.8 percentage points to 41.8 per cent, Parliament and Basic's shares unchanged at 1.9 per cent and 4.0 per cent respectively, and Virginia Slims' share down 0.2 percentage points to 2.0 per cent. The market share of the company's other brands slipped 0.1 percentage points to 1.3 per cent. PM USA's net revenues increased by 2.2 per cent to $4.9 billion during the second quarter, revenues net of excise taxes increased by 3.8 per cent to about $4.1 billion, while adjusted revenues net of excise taxes and contract volume manufactured for PMI increased 1.0 per cent to about $4.0 billion. Meanwhile, the Altria Group reported second-quarter diluted earnings per share (EPS) from continuing operations of $0.45, up by 32.4 per cent on those of the second quarter of 2007, and adjusted diluted EPS from continuing operations up by 12.2 per cent to $0.46. "During the second quarter, Altria delivered strong earnings per share growth, reflecting our commitment to deliver substantial shareholder return," said Michael E. Szymanczyk, chairman and CEO. "Altria is reaffirming its 2008 earnings per share guidance, reflecting confidence in the strength of our businesses. "PM USA delivered solid income growth and achieved strong retail share results, driven by Marlboro, and John Middleton's cigar business delivered strong income, volume and share performance." Enditem