Cigarette Volume And Share Falls at PM USA Last Year

Source from:  Tobacco Reporter 01/30/2011

PM USA's reported domestic cigarette shipment volume last year, at 140.8 billion, was down by 5.3 per cent on that of 2009. Marlboro volumes were down by 3.7 per cent to 121.9 billion, while volumes of other premium cigarettes were down by 12.6 per cent to 10.3 billion. Discount product volumes were down by 16.8 per cent to 8.6 billion. These figures were released yesterday as the Altria Group presented its full year and fourth quarter figures for last year. Domestic cigarette shipment volume during the fourth quarter of last year, at 33.6 billion, was down by 7.0 per cent on that of the fourth quarter of 2009. Marlboro volumes were down by 5.7 per cent to 29.2 billion, while volumes of other premium cigarettes were down by 12.2 per cent to 2.4 billion. Discount product volumes were down by 18.2 per cent to 2.0 billion. PM USA's retail share of the US cigarette market during the full year 2010, at 49.8 per cent, was down by 0.1 of a percentage point on that of 2009. Marlboro's share was up by 0.8 of a percentage point to 42.6 per cent, while the share of the company's other premium brands fell by 0.5 of a percentage point to 3.9 per cent. The share of the company's discount brands fell by 0.4 of a percentage point to 3.3 per cent. USSTC and PM USA's combined reported domestic smokeless products shipment volume during 2010, at 724.4 million cans and packs, was up by 12.2 per cent on that of the previous year. Copenhagen volumes, at 327.5 million, were up by 16.7 per cent, while Skoal volumes were up by 3.4 per cent to 274.4 million. Red Seal and other brand volumes were up by 22.9 per cent to 122.5 million. Total volumes during the fourth quarter of 2010, at 172.5 million, were 2.5 per cent up on those of the fourth quarter of 2009. Fourth quarter volumes of Copenhagen, at 82.6 million, were up by 6.1 per cent, while those of Skoal were down by 1.5 per cent to 65.7 million. Red Seal and other brand volumes during the fourth quarter were up by 1.5 per cent to 24.2 million cans. USSTC and PM USA's smokeless product retail share last year, at 55.3 per cent, was up by 0.7 of a percentage point on that of 2009. Copenhagen's share rose by 2.0 percentage points to 25.6 per cent, while Skoal's share fell by 1.2 percentage points to 22.4 per cent. The retail share of Red Seal and other smokeless brands fell by 0.1 of a percentage point to 7.3 per cent. Middleton's reported cigar shipment volume last year, at 1,246 million, was down by 1.0 per cent on that of 2009. Black & Mild volumes were down by 0.5 per cent to 1,222 million. Middleton's share of the US cigar market in 2010, at 28.9 per cent, was down by 1.5 percentage points. Black & Mild's share was down by 1.3 percentage points to 28.5 per cent. During the full year 2010, Altria's net revenues, at $24.4 billion, increased by 3.4 per cent on those of 2009, and revenues net of excise taxes increased by 0.4 per cent to $16.9 billion. Operating income increased by 14.0 per cent to $6.2 billion, and net earnings attributable to Altria increased by 21.8 per cent to $3.9 billion. During the fourth quarter of 2010, Altria's net revenues, at $5.9 billion, were down by 1.4 per cent on those of the fourth quarter of 2009, while revenues net of excise taxes increased 1.0 per cent to $4.1 billion. Operating income increased by 24.4 per cent to $1.5 billion, and net earnings attributable to Altria increased by 26.8 per cent to $0.9 billion. "Altria successfully navigated a challenging economic environment in 2010 and delivered strong results to our shareholders," said Altria's chairman and CEO, Michael E. Szymanczyk. "Altria grew its adjusted diluted earnings per share by nearly 9 per cent in 2010, and increased its quarterly dividend rate by 11.8 per cent, reflecting the underlying financial strength of our businesses. "Altria's total shareholder return in 2010 was 32.9 per cent, outpacing the S&P 500's total return of 14.8 per cent for the eleventh straight year." Enditem