PM USA Sheds Volume But Gains Share in 2008

Source from:  Tobacco Reporter 02/02/2009

Jan 30, 2009-Philip Morris USA's 2008 domestic cigarette shipment volume of 169.4 billion units was 3.2 per cent lower than that of 2007, and was estimated to be down by about four per cent when adjusted for changes in trade inventories and calendar differences. But the company's retail cigarette share grew by 0.1 of a share point to 50.7 per cent, driven by Marlboro, which gained 0.6 of a share point to 41.6 per cent. Parliament lost 0.1 of a share point to end the year on 1.8 per cent, while Virginia Slims lost 0.2 of a share point to close at 2.0 per cent and Basic lost 0.2 of a share point to finish on 3.9 per cent. Overall, PM USA's focus brands gained 0.1 of a share point to end on 49.3 per cent, while the position of its other brands remained unchanged on 1.4 per cent. During the full year, Marlboro shipments were down 2.0 per cent to 141.5 billion, while shipments of Parliament, Virginia Slims and Basic fell 9.2 per cent to 5.5 billion, 9.7 per cent to 6.3 billion and 8.5 per cent to 12.1 billion respectively. Overall, PM USA's shipments of its 'Focus Brands' fell 3.1 per cent to 165.4 billion, while shipments of its other brands fell 10.1 per cent to 4.0 billion. For the fourth quarter of 2008, PM USA's domestic cigarette shipment volume of 40.8 billion units was 2.1 per cent down on that of the fourth quarter of 2007, and was estimated to be 3.5 per cent lower when adjusted for changes in trade inventories. The company's retail cigarette share during the quarter fell by 0.3 of a share point to 50.4 per cent, even though Marlboro gained 0.4 of a share point to 41.6 per cent. During the fourth quarter, Marlboro shipments were down 0.5 per cent to 34.1 billion, while shipments of Parliament, Virginia Slims and Basic fell 13.0 per cent to 1.4 billion, 3.3 per cent to 1.6 billion and 9.7 per cent to 2.8 billion respectively. Overall, PM USA's shipments of its 'Focus Brands' fell 1.8 per cent to 39.9 billion, while shipments of its other brands fell 13.1 per cent to 0.9 billion. John Middleton's 2008 cigar shipment volume grew by 6.2 per cent from that of 2007 to 1.3 billion units, and for the fourth quarter, its shipment volume increased by 3.4 per cent to 311 million units. Details of PM USA and Middleton's performance were released yesterday by the Altria Group which reported 2008 full year diluted earnings per share (EPS) from continuing operations of $1.48, unchanged from those of 2007. The Group said that this result reflected in part solid operating companies' income (OCI) performance by PM USA and Middleton. Adjusted diluted EPS from continuing operations increased 10.0 per cent to $1.65, up from $1.50 in 2007. For the fourth quarter of 2008, reported diluted EPS from continuing operations were down by 15.4 per cent to $0.33, but adjusted diluted EPS from continuing operations increased by 5.7 per cent to $0.37. "Altria delivered strong 2008 business results in a year of significant change for the company," said Michael E. Szymanczyk, chairman and CEO. "In 2008, Altria successfully completed both the spin-off of PMI and a significant corporate restructuring, which included relocating our headquarters to Richmond, Virginia. "In early January of 2009, Altria completed the acquisition of UST, which transformed Altria into the premier tobacco company in the United States. Our tobacco operating companies have four powerful brands, Marlboro, Copenhagen, Skoal and Black & Mild, which are leaders in the largest and most profitable domestic tobacco categories. Looking ahead, our tobacco businesses are exceedingly well positioned to continue delivering superior shareholder return." Enditem