Altria Group, Inc. Reports 2007 Third-Quarter Results.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Regulatory News: * Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the up 18.1% to $1.24, including favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. tax items of $0.05 per share and charges of $0.02 per share for asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. , exit and implementation costs, as well as other items detailed on Schedule 7 * Adjusted diluted earnings per share from continuing operations up 13.1% to $1.21 versus $1.07 in 2006 * Forecast raised for full-year 2007 diluted earnings per share from continuing operations to a range of $4.20 to $4.25, versus a previously announced range of $4.05 to $4.10 Altria Group “Philip Morris” redirects here. For the racecar driver, see Philip Morris (autoracer). Altria Group, Inc. (NYSE: MO) (previously named Philip Morris Companies Inc. , Inc. (NYSE NYSE See: New York Stock Exchange : MO) today announced third-quarter diluted earnings per share from continuing operations of $1.24, up $0.19 or 18.1% versus the prior year, including favorable tax items of $0.05 per share and charges of $0.02 per share for asset impairment, exit and implementation costs, as well as other items detailed on the attached Schedule 7. "In the third quarter, we continued to witness improvement in our business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point , which generated robust earnings growth," said Louis C. Camilleri Louis C. Camilleri (b. 1955, Alexandria, Egypt) is the Chairman and CEO of Altria Group, the parent company of Philip Morris. Camilleri received a degree in economics and business administration from HEC Lausanne, the prestigious business school of the University of Lausanne , chairman and chief executive officer of Altria Group, Inc. "In addition, we took numerous steps to accelerate our growth by investing behind product innovation and announcing our intention to pursue a further restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of our company." Conference Call A conference call with members of the investment community and news media will be Webcast at 9:00 a.m. Eastern Time on October 17, 2007. Access is available at www.altria.com. 2007 Third-Quarter Results Excluding Items After adjusting for the items shown in the table below, diluted earnings per share from continuing operations increased 13.1% to $1.21 for the third quarter of 2007, versus $1.07 in the corresponding prior-year period. [TABLE OMITTED] 2007 Full-Year Forecast Altria raised its forecast to a range of $4.20 to $4.25 for 2007 full-year diluted earnings per share from continuing operations, reflecting a lower tax rate ($0.08 per share), favorable currency ($0.04 per share) and improved results ($0.03 per share) at Philip Morris International Philip Morris International, (PMI) based in Lausanne, Switzerland, held a 15.5% share of the international cigarette market in 2005. Its brands, led by Marlboro and L&M, are sold in over 160 countries around the world. (PMI See Private Mortgage Insurance. ). The company's previously announced range for 2007 full-year diluted earnings per share from continuing operations was $4.05 to $4.10. The revised projection includes charges of $0.17 per share, which are $0.07 per share lower due mainly to the above-mentioned one-time favorable tax items, versus $0.24 per share in charges in the previous forecast. Both the revised and previous projections include $0.06 per share for cash recoveries at Philip Morris Capital Corporation (PMCC PMCC Product Moment Correlation Coefficient PMCC Postmark Collectors Club PMCC Professional Military Comptroller Course PMCC Packet Mode Channel Connect PMCC Project Management Core Competency PMCC Pensky-Martens Closed Cup test ), which were recorded in the first half of 2007. The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to this projection. Intention to Pursue the Spin-Off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of Philip Morris International On August 29, the Board of Directors of Altria Group, Inc. announced its intention to pursue the spin-off of PMI to Altria's shareholders. The Board anticipates that it will be in a position to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... its decision and announce the precise timing of the spin-off at its regularly scheduled meeting on January 30, 2008. In addition to a final determination by the Board, the spin-off of PMI will be subject to the receipt of a favorable ruling from the Internal Revenue Service, the receipt of an opinion of tax counsel, the effectiveness of a registration statement with the U.S. Securities and Exchange Commission (SEC), as well as the execution of several inter-company agreements and the finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of other matters. On September 27, PMI filed with the SEC a preliminary registration statement on Form 10 in preparation for its potential spin-off from Altria. In addition, Altria submitted a private letter ruling request to the Internal Revenue Service. PMI Agreement to Acquire Additional 30% Stake in Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum Tobacco Business On July 18, PMI announced that it had reached an agreement in principle to acquire an additional 30% stake in its Mexican tobacco business from its joint venture partner, Grupo Carso Grupo Carso is a conglomerate of companies owned by the Mexican tycoon Carlos Slim. It was formed in 1990 after the merge of Corporación Industrial Carso and Grupo Inbursa. The name Carso stands for Carlos Slim and Soumaya Domit de Slim †, wife of Slim. , S.A.B. de C.V. PMI currently holds a 50% stake in its Mexican tobacco business and this transaction would bring PMI's stake to 80%. Grupo Carso would retain a 20% stake in the business. The transaction has a value of approximately $1.1 billion and is expected to close shortly. When completed, the transaction is expected to increase Altria's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net earnings by approximately $0.03 per share. Dividend Increased During the third quarter of 2007 Altria Group, Inc. increased its regular quarterly dividend by 8.7% to $0.75 per common share, which represents an annualized rate of $3.00 per common share. ALTRIA GROUP, INC. As described in "Note 15. Segment Reporting segment reporting A type of financial reporting in which the firm discloses information by identifiable industry segments. For example, Union Pacific Corporation reports revenues, income, assets, depreciation, and capital expenditures for each of four " of Altria Group, Inc.'s 2006 Annual Report, management reviews operating companies operating company A business that engages in transactions with outsiders. income, which is defined as operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before corporate expenses and amortization of intangibles, to evaluate segment performance and allocate To reserve a resource such as memory or disk. See memory allocation. resources. Management believes it is appropriate to disclose this measure to help investors analyze business performance and trends. For a reconciliation of operating companies income to operating income, see the Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Statements of Earnings contained in this release. Altria Group, Inc.'s 2007 reported results and previous-year results reflect Kraft as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . As such, net revenues and operating companies income for Kraft are excluded from the company's results, while the net earnings impact is included as a single line item. The products of Altria's subsidiaries include cigarettes and other tobacco products manufactured and sold by Philip Morris USA Philip Morris USA is the United States tobacco division of Altria Group, Inc. General information On January 27, 2003, Philip Morris Companies Inc. changed its name to Altria Group, Inc. Even under this new name, Altria continues to own 100% of Philip Morris USA. (PM USA) in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and by Philip Morris International (PMI) outside the United States. PMI's operations are organized and managed by geographic region. Beginning with the second quarter of 2007, Altria's reportable segments are U.S. Tobacco; European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community (EU); Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , Middle East & Africa (EEMA EEMA - European Electronic Messaging Association ); Asia; Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. ; and Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . All references in this news release are to continuing operations, unless otherwise noted. References to international tobacco market shares are PMI estimates based on a number of sources. 2007 Third-Quarter Results Revenues net of excise taxes excise taxes, governmental levies on specific goods produced and consumed inside a country. They differ from tariffs, which usually apply only to foreign-made goods, and from sales taxes, which typically apply to all commodities other than those specifically exempted. increased 5.9% to $10.0 billion for the third quarter of 2007, driven by increases in both U.S. tobacco and international tobacco. Operating income increased 10.4% to $3.7 billion, reflecting the items described in the attached reconciliation on Schedule 3, including higher results from operations of $194 million and favorable currency of $138 million. Earnings from continuing operations increased 18.9% to $2.6 billion, reflecting the items above as well as a decrease in interest expense due to lower debt outstanding. The company's effective tax rate was 30.2% in the third quarter of 2007 versus 34.1% for the year-earlier period. Third-quarter 2007 results include favorable tax adjustments of $97 million or $0.05 per share, primarily due to the reversal of tax reserves no longer required and reduction of the German corporate tax rate. Net earnings, including discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , decreased 8.4% to $2.6 billion, reflecting the Kraft spin-off. Diluted earnings per share, including discontinued operations as detailed on Schedule 1, decreased 8.8% to $1.24. U.S. TOBACCO 2007 Third-Quarter Results Philip Morris USA (PM USA), Altria Group, Inc.'s U.S. tobacco business, achieved a record 50.6% retail market share, up 0.2 points, driven primarily by Marlboro, which increased its retail market share 0.5 points to a record 41.1%. Third-quarter revenues net of excise taxes increased 3.2% to $4.0 billion. Operating companies income increased 2.0% to $1.3 billion compared to the year-earlier period. The increase was driven by lower wholesale promotional allowance rates and lower selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . Those factors were partially offset by increased resolution expenses, lower volume, investments in support of PM USA's adjacency strategy and a $22 million pre-tax charge related to asset impairment, exit and implementation costs for the previously announced closure of the Cabarrus, NC cigarette manufacturing facility. Adjusted for the $22 million pre-tax charge, PM USA's operating companies income would have increased by 3.7%. During the quarter, PM USA announced a reduction in the wholesale promotional allowance on its Focus on Four brands effective September 10, 2007. The allowances for Marlboro, Parliament and Basic were reduced by $0.50 per carton, from $4.00 to $3.50, and for Virginia Slims Virginia Slims cigarette trademark marketed to “independent women.” “You’ve come a long way, baby,” as slogan. [Trademarks: Crowley Trade, 630] See : Feminism by $2.00 per carton, from $4.00 to $2.00. In addition, the price of PM USA's non-focus brands was increased by $0.50 per carton. PM USA's cigarette shipment volume of 47.1 billion units was 1.0% lower than the prior-year period, but was estimated to be down approximately 3% when adjusted for changes in trade inventories and calendar differences. During the third quarter of 2007, PM USA estimates that total cigarette industry volume declined between 3% and 4%, and for the full year 2007 PM USA is maintaining its prior estimate of a 3% to 4% decline in total cigarette industry volume. Cigarette volume performance by brand for PM USA is summarized in the table below: [TABLE OMITTED] * U.S. unit volume includes units sold as well as promotional units, and excludes Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. and U.S. Territories. ** Calculation based on millions of units. As shown in the following table, in the third quarter of 2007, share gains for Marlboro and Parliament of 0.5 points and 0.1 point, respectively, were partially offset by losses of 0.2 share points for Basic and of 0.1 share points each for Virginia Slims and non-focus brands. PM USA's cigarette retail share performance by brand is summarized in the table below: [TABLE OMITTED] As part of its adjacency growth strategy to develop new revenue and income sources for the future, PM USA initiated a test market of Marlboro Snus in the Dallas/Fort Worth, TX area beginning in August 2007. Additionally, PM USA announced that it will test market Marlboro Moist Smokeless Tobacco smokeless tobacco, n chewing tobacco (leaves) or tobacco powder (snuff) that allows the nicotine to be absorbed through the mucous membrane of the oral cavity or digestive tract. It is related to a high risk of oral cancer. in the Atlanta, GA area, with shipments to wholesalers beginning this week. Marlboro Moist Smokeless Tobacco is designed to provide a premium quality product at an attractive price for adult moist smokeless tobacco consumers. INTERNATIONAL TOBACCO 2007 Third-Quarter Results Philip Morris International (PMI), Altria Group, Inc.'s international tobacco business, reported that its revenues net of excise taxes were up 9.3% to $5.9 billion. Operating companies income grew 18.8% to $2.5 billion, due primarily to higher pricing, favorable currency of $138 million and productivity and cost savings. Excluding the impact of asset impairment and exit costs, acquisitions and currency, operating companies income grew 10.2%. PMI's operating companies income performance by segment is summarized in the table below: [TABLE OMITTED] Cigarette shipment volume increased 0.6% or 1.3 billion units, to 217.2 billion units, due to acquisition volume from Lakson Tobacco in Pakistan. Excluding the impact of the Pakistan acquisition, cigarette shipment volume was down 1.9% or 4.0 billion units, due mainly to lower shipments in the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , Germany and Poland, partially offset by gains in Algeria, Argentina, Bulgaria, Egypt, Korea, Lebanon, Slovak Republic, Slovenia, Spain and Ukraine. PMI's volume performance by segment is summarized in the table below: [TABLE OMITTED] PMI's third-quarter 2007 market share performance improved versus the year-ago period in Argentina, Australia, Egypt, Greece, Hungary, Israel, Italy, Korea, Mexico, Russia, Singapore, Spain, Sweden, Taiwan and Ukraine. PMI has a superior portfolio of premium brands, comprised of Marlboro, Parliament and Virginia Slims. In the third quarter, the combined worldwide volume of this premium portfolio grew by 0.7% or 653 million units. Total Marlboro cigarette shipment volume of 79.4 billion units was down 1.3%. Lower shipments in the European Union and Japan were partially offset by gains in Argentina, Indonesia and Russia. Marlboro market share was up in many markets, including Argentina, Brazil, Egypt, Greece, Hungary, Indonesia, Israel, Korea, Mexico, Philippines, Russia, Singapore and Ukraine. EUROPEAN UNION 2007 Third-Quarter Results In the European Union (EU), operating companies income grew 20.5% to $1.2 billion, driven by higher pricing and favorable currency of $100 million. The total market declined 3.8%, due largely to the impact of tax-driven price increases, particularly in the Czech Republic, Germany, Poland and the United Kingdom. PMI's cigarette shipment volume of 65.4 billion units declined 4.8% and cigarette market share was down 0.6 points to 39.1%. For the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. through September, PMI's share in the EU at 39.4% was unchanged from the comparative period in 2006. In the Czech Republic, the total cigarette market was down 9.2%, due to the timing of trade purchases, although year-to-date volume through September was up 1.6%. Shipment volume for PMI in the Czech Republic decreased 22.6% in the third quarter and market share of 49.3% was down 8.5 points. PMI implemented tax-driven price increases in the second quarter, while most competitive brands, particularly at the low end, followed in the third quarter. This placed PMI's brands at a temporary price disadvantage and was the main cause of the significant market share loss. PMI expects to recover a large part of this loss in the fourth quarter of 2007. In France, the total market declined 3.9%, due to the impact of higher pricing. PMI's market share of 42.0% declined 0.5 points and shipments were down 5.5%. In Germany, the cigarette market declined 5.7%, due to a tax-driven price increase in the fourth quarter of 2006. PMI's cigarette shipments in Germany were down 9.0%, and its cigarette market share declined 1.3 points to 35.2%, driven by consumer downtrading to the low price segment and an increase in a key competitor's trade inventory. Marlboro declined 3.1 points to 24.1%, due to the decline of the vending segment and the previously mentioned trade inventory increase. L&M grew 2.4 share points to reach 5.3%. In Italy, the total market was down 0.9%. PMI's shipments were up 0.6% and its share increased 0.6 points to 54.7%, with Merit, Chesterfield Chesterfield, city (1991 pop. 73,352) and district, Derbyshire, central England. An important industrial center, Chesterfield produces mining equipment, railroad cars, metal products, glass, and pottery. and Philip Morris contributing to the growth. In Poland, consumer price sensitivity following significant tax-driven price increases resulted in a total market decline of 10.5% and PMI's market share was down 2.6 points to 38.0%, due primarily to declines of its low price brands, as well as its local 70mm brands. Importantly, profitability in Poland virtually tripled due to higher pricing. In Spain, the total cigarette market was down 0.6%, while PMI's market share of 32.7% rose 0.4 points, driven by Chesterfield and L&M. Cigarette shipments in Spain grew 1.8% and income rose by more than 30% in the quarter. EASTERN EUROPE, MIDDLE EAST & AFRICA 2007 Third-Quarter Results In Eastern Europe, Middle East & Africa, PMI's operating companies income increased 22.0% to $710 million, due mainly to higher pricing, improved volume/mix and favorable currency of $44 million. Cigarette shipment volume of 77.5 billion units was up 0.3%. Higher volume in Algeria, Bulgaria, Egypt, Lebanon and Ukraine more than offset unfavorable timing of shipments in Kuwait and lower volume in Serbia and worldwide duty-free. In Egypt, the total market rose 6.4%, while PMI's market share grew 2.6 points to 14.2%, due to the continued strength of L&M. Shipment volume in Egypt grew 21.1%. In Russia, shipment volume declined 1.0% due to unfavorable distributor inventory movements following consolidation to a single distributor. Market share rose 0.2 points to 26.6% as its premium portfolio including Marlboro, Parliament and Virginia Slims continued to grow strongly, more than offsetting the decline of L&M. In September, PMI replaced the entire L&M brand family with a completely new offering to improve its vibrancy vi·brant adj. 1. a. Pulsing or throbbing with energy or activity: the vibrant streets of a big city. b. and adult consumer appeal. Initial results are encouraging. Improved brand mix and better pricing resulted in strong income growth in Russia. In Serbia, PMI's shipments were down 10.6%, due to the continued decline of local brands, and market share was down 1.9 points to 52.0%. However, PMI's market share increased for its international brands, driven by Marlboro and Bond Street. Market share for Marlboro rose slightly and its share of the premium segment increased. In Ukraine, shipments grew 3.5% and market share rose 0.6 points to 34.0%, driven by consumer uptrading to Marlboro, Parliament and Chesterfield. ASIA 2007 Third-Quarter Results In Asia, operating companies income grew 14.5% to $514 million, primarily due to favorable pricing and lower costs, partially offset by unfavorable volume/mix and unfavorable currency of $9 million. PMI's cigarette shipment volume of 53.0 billion units rose 9.6%, due to acquisition volume in Pakistan and gains in Korea, partially offset by declines in Indonesia, Malaysia and Thailand. In Indonesia, the total cigarette market was essentially flat. PMI market share was down 0.6 points to 28.0%, reflecting the decline of A Mild and Dji Sam Soe due to a temporary stick-price disadvantage versus low price competition, partially offset by the growth of Marlboro, which gained 0.5 points to 4.3%. PMI's cigarette shipments declined 1.9%, although Marlboro shipments rose 20.7%, driven by improved marketing and distribution and the July 2007 Marlboro kretek launch. Profits rose significantly in Indonesia. In Japan, the total cigarette market was up 16.4% or 9.4 billion units, due to a favorable comparison with the third quarter of 2006, which was depressed by trade inventory depletions following the July 2006 excise A tax imposed on the performance of an act, the engaging in an occupation, or the enjoyment of a privilege. A tax on the manufacture, sale, or use of goods or on the carrying on of an occupation or activity, or a tax on the transfer of property. tax-driven price increase. Consequently, PMI's in-market sales were up 13.4%, but market share declined 0.6 points to 24.3%, due mainly to Lark. Marlboro share of 10.1% was essentially flat. Cigarette shipment volume was flat, as higher in-market sales were offset by unfavorable inventory movements. In Korea, the total market was down 3.2%, while PMI's shipments rose 10.0% and market share increased 1.3 points to 9.9%. Parliament and Marlboro continued to gain share, driven by recent new line extensions, including Marlboro Filter Plus. LATIN AMERICA 2007 Third-Quarter Results In Latin America, operating companies income increased 7.5% to $143 million, due mainly to higher pricing. Cigarette shipment volume of 21.3 billion units was down 1.5%, as declines in Brazil and Colombia were partially offset by growth in Argentina. In Argentina, the total cigarette market grew 1.7%. PMI's volume grew 5.0% and market share increased 2.2 points to a record 69.7%. Both Marlboro and the Philip Morris brand gained share. In Brazil, the total market was down 0.9% and PMI's market share declined 0.2 points to 12.0%. However, Marlboro share grew 0.2 points to 5.9%. PMI shipments were down 2.8%. In Colombia, PMI shipment volume declined 17.6%, due primarily to distributor inventory distortions. However, PMI expects volume to recover in the fourth quarter of 2007. In Mexico, the total market declined 1.7%, due to lower consumption following the January 2007 tax-driven price increase. PMI market share reached a new record of 65.5%, up 1.6 points on the continued strength of Marlboro and Benson & Hedges. FINANCIAL SERVICES 2007 Third-Quarter Results Philip Morris Capital Corporation (PMCC) reported operating companies income of $33 million for the third quarter of 2007 versus operating companies income of $101 million for the year-earlier period. Third-quarter 2007 results primarily reflect lower asset management gains and lower lease revenues versus the prior year. Consistent with its strategic shift in 2003, PMCC is focused on managing its existing portfolio of finance assets in order to maximize gains and generate cash flow from asset sales and related activities. PMCC is no longer making new investments and expects that its operating companies income will fluctuate over time as investments mature or are sold. Altria Group, Inc. Profile As of September 30, 2007, Altria Group, Inc. owned 100% of Philip Morris International Inc., Philip Morris USA Inc. and Philip Morris Capital Corporation, and approximately 28.6% of SABMiller plc. The brand portfolio of Altria Group, Inc.'s tobacco operating companies includes such well-known names as Marlboro, L&M, Parliament and Virginia Slims. Altria Group, Inc. recorded 2006 net revenues from continuing operations of $67.1 billion. Trademarks and service marks mentioned in this release are the registered property of, or licensed by, the subsidiaries of Altria Group, Inc. Forward-Looking and Cautionary Statements This press release contains projections of future results and other forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The following important factors could cause actual results and outcomes to differ materially from those contained in such forward-looking statements. Altria Group, Inc.'s tobacco subsidiaries (Philip Morris USA and Philip Morris International) are subject to intense price competition; changes in consumer preferences and demand for their products; fluctuations in levels of customer inventories; the effects of foreign economies and local economic and market conditions; unfavorable currency movements and changes to income tax laws. Their results are dependent upon their continued ability to promote brand equity successfully; to anticipate and respond to new consumer trends; to develop new products and markets and to broaden brand portfolios in order to compete effectively with lower-priced products; and to improve productivity. Altria Group, Inc.'s tobacco subsidiaries continue to be subject to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , including risks associated with adverse jury and judicial determinations, and courts reaching conclusions at variance var·i·ance n. 1. a. The act of varying. b. The state or quality of being variant or variable; a variation. c. A difference between what is expected and what actually occurs. 2. with the company's understanding of applicable law and bonding requirements in the limited number of jurisdictions that do not limit the dollar amount of appeal bonds; legislation, including actual and potential excise tax Excise Tax 1. An indirect tax charged on the sale of a particular good. 2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS. Notes: 1. increases; discriminatory dis·crim·i·na·to·ry adj. 1. Marked by or showing prejudice; biased. 2. Making distinctions. dis·crim excise tax structures; increasing marketing and regulatory restrictions; the effects of price increases related to excise tax increases and concluded tobacco litigation settlements on consumption rates and consumer preferences within price segments; health concerns relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the use of tobacco products and exposure to environmental tobacco smoke environmental tobacco smoke (ETS/passive smoke), n the gaseous by-product of burning tobacco products, including but not limited to commercially manufactured cigarettes and cigars; contains toxic elements harmful to the health of adults and children ; governmental regulation; privately imposed smoking restrictions; and governmental and grand jury investigations. Altria Group, Inc. and its subsidiaries are subject to other risks detailed from time to time in its publicly filed documents, including its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the period ended June 30, 2007. Altria Group, Inc. cautions that the foregoing list of important factors is not complete and does not undertake to update any forward-looking statements that it may make. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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