Altria Tops Profit Estimates on New Snuff, Marlboro

Source from:  Bloomberg 04/22/2010

Altria Group Inc., the largest U.S. tobacco company, reported first-quarter profit that exceeded some analysts' estimates after new varieties of smokeless tobacco and Marlboro cigarettes spurred demand. Excluding some items, earnings rose to 42 cents a share from 39 cents, Richmond, Virginia-based Altria said today in a statement. Analysts projected 40 cents, the average of 10 estimates in a Bloomberg survey. Altria introduced snuff varieties including Copenhagen Long Cut Straight in the period, as well as Marlboro Special Blend, helping boost the top-selling U.S. cigarette's share to a record. Industrywide smokeless tobacco shipments rose 7 percent while cigarette volumes tumbled 10 percent amid higher state and U.S. tobacco taxes and smoking restriction, Altria estimated. "They've done a good job expanding Marlboro despite the obstacles," Thomas Russo, a partner at Gardner Russo & Gardner in Lancaster, Pennsylvania, said today by telephone. He manages more than $3 billion in assets, including 6.6 million Altria shares as of Dec. 31. New products "have drawn a lot of attention to the Copenhagen brand." Marlboro's share of U.S. retail sales increased 0.3 percentage point to 42.7 percent and Copenhagen's rose 1.9 points to 25.6 percent from a year earlier. Altria's total cigarette share fell 0.7 point to 50.2 percent. Altria rose 29 cents to $21.46 at 4 p.m. in New York Stock Exchange composite trading. The shares have advanced 9.3 percent this year, after climbing 30 percent in 2009. Net income increased 38 percent to $813 million, or 39 cents a share, from $589 million, or 28 cents, a year earlier, Altria said. Enditem