Altria Reports 2009 Third-Quarter Results.* Altria's 2009 reported 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 unchanged at $0.42 in the third quarter and up 3.5% to $1.19 for the first nine months, versus the prior-year periods * Altria's 2009 adjusted diluted earnings per share up 4.3% to $0.48 in the third quarter and up 7.0% to $1.37 for the first nine months, versus the prior-year periods * Marlboro delivers year-over-year and sequential retail share growth in the third quarter of 2009 * Smokeless smoke·less adj. 1. Emitting or containing little or no smoke: smokeless factory stacks. 2. products' premium retail share stabilizes in the third quarter of 2009 versus the second quarter of 2009 * Altria narrows full-year 2009 guidance for reported diluted earnings per share 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 to a range of $1.53 to $1.56 versus prior forecast of $1.51 to $1.56 * Altria narrows full-year 2009 guidance for adjusted diluted earnings per share from continuing operations to a range of $1.74 to $1.77 versus prior forecast of $1.72 to $1.77 RICHMOND, Va. -- 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. (Altria) (NYSE NYSE See: New York Stock Exchange : MO) today announced 2009 third-quarter reported diluted earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) of $0.42, which was unchanged versus the third quarter of 2008. Reported results reflect higher operating companies operating company A business that engages in transactions with outsiders. income (OCI OCI Oracle Call Interface OCI Organisation de la Conférence Islamique (French: Organization of the Islamic Conference) OCI Other Comprehensive Income OCI Office of the Commissioner of Insurance OCI Organizational Conflict of Interest ) from 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. and cigars, as well as the OCI contribution from the UST USt Umsatzsteuer (German: Tax) UST Underground Storage Tank UST University of St. Thomas (Minnesota, Texas) UST University of Santo Tomas (Manila, Philippines) LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (UST) acquisition, lower income taxes, higher earnings from Altria's equity investment in SABMiller plc (SABMiller), and lower general corporate expenses, offset by higher interest expense, higher corporate exit costs, and lower OCI from cigarettes versus the prior-year period. Altria's adjusted 2009 third-quarter diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS increased 4.3% to $0.48 versus $0.46 in the third quarter of 2008 as shown in Table 1 below. For the first nine months of 2009, Altria's reported diluted EPS from continuing operations increased 3.5% to $1.19 versus $1.15 in the prior-year period. Altria's adjusted diluted EPS from continuing operations for the first nine months of 2009 increased 7.0% to $1.37 versus $1.28 in the prior-year period as shown in Table 1 below. "Altria reported solid adjusted earnings per share growth in the third quarter," said Michael E. Szymanczyk, Chairman and Chief Executive Officer of Altria. "The premium brands of Altria's tobacco operating companies, Marlboro, Copenhagen, Skoal skoal interj. Used as a drinking toast. [Danish and Norwegian skaal, cup, skoal, from Old Norse sk and Black & Mild, continue to display great strength in a challenging operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. . Altria remains focused on returning cash to shareholders in the form of dividends, as evidenced by our recent 6.3% dividend increase, reflecting the underlying financial strength of our businesses." [TABLE OMITTED] * Excludes exit and integration costs Dividend Increase On August 27, 2009, Altria announced that its Board of Directors had voted to increase the company's regular quarterly dividend by 6.3% to $0.34 per common share versus the previous rate of $0.32 per common share. The new 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. dividend rate is $1.36 per common share. Future dividend payments remain subject to the discretion of Altria's Board of Directors. Cost Management Altria and its companies achieved $76 million in cost savings in the third quarter of 2009 and $241 million in savings through the first nine months of 2009. Altria expects to achieve approximately $619 million in additional cost savings by 2011 for total anticipated cost reductions of $1.5 billion versus 2006, as shown in Table 2 below. As part of its corporate expense and selling, general & administrative (SG&A) cost reduction initiatives, Altria incurred pre-tax charges of $54 million in the third quarter of 2009, consisting primarily of employee separation costs. On July 29, 2009, 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) ceased production of cigarettes in its Cabarrus County, North Carolina
Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. Program, which is expected to deliver ongoing cost savings of $188 million by 2011. Altria incurred pre-tax charges of $96 million in the third quarter and $180 million in the first nine months of 2009 for exit and implementation costs related primarily to this initiative. Altria expects to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. pre-tax charges of approximately $90 million in the fourth quarter of 2009 and $40 million in 2010 related to this initiative. [TABLE OMITTED] Note: Altria expects to generate an estimated $300 million in UST integration cost savings by 2011. UST integration costs savings are included in the Corporate Expense and SG&A line item beginning in 2009. UST Integration Update The UST integration is substantially complete and within budget. Altria incurred pre-tax charges of $363 million in acquisition-related charges as well as 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). and integration costs in the first nine months of 2009, which include pre-tax charges of $37 million in the third quarter. Altria expects to incur additional integration and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of approximately $76 million in the fourth quarter of 2009 and $40 million in 2010. Altria now expects the UST acquisition to be accretive to its adjusted diluted earnings per share in 2010. 2009 Full-Year Earnings Per Share Guidance Altria narrows its 2009 full-year guidance for reported diluted earnings per share from continuing operations to a range of $1.53 to $1.56. Altria previously forecasted that its 2009 full-year guidance for reported diluted earnings per share from continuing operations would be in the range of $1.51 to $1.56. This revised forecast includes estimated net charges of $0.21 per share related to exit, integration and implementation costs, UST acquisition-related costs, SABMiller special items, and tax items. Altria narrows its 2009 full-year guidance for adjusted diluted earnings per share from continuing operations to a range of $1.74 to $1.77, representing a growth rate of 5% to 7% from an adjusted base of $1.65 per share in 2008. Altria previously forecasted that its 2009 full-year guidance for adjusted diluted earnings per share from continuing operations would be in the range of $1.72 to $1.77, representing a growth rate of 4% to 7%. The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections. A reconciliation of Altria's full-year forecasted reported and adjusted diluted earnings per share from continuing operations is shown in Table 3 below. [TABLE OMITTED] * Excludes exit and integration costs Conference Call A conference call with the investment community and news media will be webcast on October 21, 2009 at 9:00 a.m. Eastern Time. Access to the webcast is available at www.altria.com. ALTRIA GROUP, INC. Altria's management reviews OCI, 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 resources. Altria's management also reviews OCI, operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and EPS on an adjusted basis, which excludes certain income and expense items that management believes are not part of underlying operations because such items can obscure underlying business trends. Management believes it is appropriate to disclose these measures to help investors analyze underlying business performance and trends. Such adjusted measures are regularly provided to management for use in the evaluation of segment performance and allocation of resources allocation of resources Apportionment of productive assets among different uses. The issue of resource allocation arises as societies seek to balance limited resources (capital, labour, land) against the various and often unlimited wants of their members. . For a reconciliation of OCI to operating income, see the Consolidated Statements of Earnings contained in this release. Reconciliations of adjusted measures to corresponding GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures are also provided in the release. All references in this news release are to continuing operations, unless otherwise noted. As a result of 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 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. Inc. (PMI See Private Mortgage Insurance. ) in the first quarter of 2008, our reported results reflect PMI 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. for the nine months ended September 30, 2008. Revenues and OCI for PMI are therefore excluded from Altria's continuing results. Altria's reporting segments are Cigarettes, manufactured by PM USA; Smokeless Products, manufactured by U.S. Smokeless Tobacco Company  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . LLC (USSTC USSTC Us Smokeless Tobacco Company (formerly United States Tobacco Company) USSTC United States Space Transport Corporation ) and PM USA; Cigars, manufactured by John Middleton John Middleton may refer to:
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 ). Altria's Business Results For the third quarter of 2009, Altria's net revenues increased 20.3% to $6.3 billion, reflecting higher pricing related primarily to the federal 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. (FET FET: see transistor. (Field Effect Transistor) One of two major categories of transistor; the other is bipolar. FETs use a gate element that, when charged, creates an electromagnetic field that changes the conductivity of a silicon ) increase on tobacco products, and the acquisition of UST. Operating income increased 4.9% to $1.4 billion, due primarily to higher OCI from financial services and cigars, as well as the OCI contribution from the UST acquisition, and lower general corporate expenses. These increases were partially offset by a reduction of a Kraft Foods Kraft Foods Inc. (NYSE: KFT) is the largest food and beverage company headquartered in North America and the second largest in the world after Nestlé SA. The Philip Morris Company (now known as Altria Group), a company that produces tobacco products, acquired Kraft for Inc. (Kraft) receivable that arose in connection with potential tax liabilities for which Kraft was responsible under a tax sharing agreement entered into in connection with the Kraft spin-off transaction, higher corporate exit costs, and lower OCI from cigarettes. Net earnings attributable to Altria increased 1.7% to $0.9 billion, due primarily to higher operating income, higher earnings from Altria's equity investment in SABMiller, and lower income taxes. The income tax rate in the third quarter of 2009 was lower than the prior-year period, due primarily to lower state taxes and the reversal of tax reserves related to Kraft that are no longer required. These increases were partially offset by higher interest expense related to the debt issued in connection with the UST acquisition. For the first nine months of 2009, Altria's net revenues increased 19.3% to $17.5 billion, reflecting higher pricing related primarily to the FET increase on tobacco products, and the acquisition of UST. Operating income increased 9.7% to $4.3 billion, due primarily to higher OCI from cigarettes, financial services and cigars, as well as the OCI contribution from the UST acquisition, lower corporate exit costs, and lower general corporate expenses. These increases in operating income were partially offset by the gain in 2008 on the sale of the corporate headquarters building, UST acquisition-related transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , and a reduction of a Kraft receivable. Earnings from continuing operations increased 2.9% to $2.5 billion, due primarily to higher operating income, a loss in 2008 on the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt in connection with the PMI spin-off, higher earnings from Altria's equity investment in SABMiller, and lower income taxes, partially offset by higher interest expense related to the debt issued in connection with the UST acquisition. Net earnings attributable to Altria, which includes PMI as a discontinued operation in 2008, decreased 41.6% to $2.5 billion. CIGARETTES Business Results The cigarettes segment's results for the third quarter and first nine months of 2009 were impacted by the April 1, 2009 FET increase on tobacco products. Net revenues for the three- and nine-month periods increased 10.7% and 9.2% respectively versus the prior-year periods, due primarily to higher pricing related to the FET increase. 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. decreased 11.3% in the third quarter and 6.7% in the first nine months of 2009, due primarily to lower volume. Adjusted revenues net of excise taxes and contract volume manufactured for PMI in 2008 for the three- and nine-month periods decreased 9.2% and 5.0% respectively versus the prior-year periods, due primarily to lower volume. Revenues for the cigarettes segment are summarized in Table 4 below. [TABLE OMITTED] Reported OCI for the cigarettes segment decreased 2.6% in the third quarter of 2009 versus the prior-year period to $1.3 billion, due primarily to lower volume and higher pre-tax charges related primarily to the previously announced closure of the Cabarrus manufacturing facility, partially offset by higher list prices and cost savings. For the first nine months of 2009, reported OCI for the cigarettes segment increased 4.2% versus the prior-year period to $3.9 billion, due primarily to higher list prices and cost savings, partially offset by lower volume and higher pre-tax charges related primarily to the previously announced closure of the Cabarrus manufacturing facility. Excluding the exit and implementation costs, adjusted OCI increased by 2.1% to $1.4 billion in the third quarter of 2009 and 6.4% to $4.1 billion in the first nine months of 2009, as shown in Table 5 below. [TABLE OMITTED] *Adjusted OCI margins are calculated as adjusted OCI, divided by adjusted revenues net of excise tax and contract volume manufactured for PMI. PM USA's cigarette shipment volume in the third quarter of 2009 was negatively impacted by the FET increase, which occurred earlier this year, a decline in trade inventories, as well as changes to PM USA's pricing and promotional strategies on its portfolio brands. PM USA's third quarter domestic cigarette shipment volume of 37.5 billion units was 16.4% lower than the prior-year period, but was estimated to be down about 12% when adjusted for changes in trade inventories. Marlboro's cigarette shipment volume was down 15% in the third quarter of 2009, but was estimated to be down about 10% when adjusted for trade inventory changes, which disproportionally dis·pro·por·tion·al adj. Disproportionate. dis  pro·por tion·al·ly adv. impacted
the brand.
Total cigarette industry volume was down an estimated 10% in the third quarter of 2009 versus the comparable year-ago period, when adjusted for trade inventory changes. In the third quarter of 2008 the trade increased cigarette inventories, while in the third quarter of 2009 the trade substantially reduced inventory levels. The difference in PM USA's volume decline rate versus the total cigarette industry in the third quarter of 2009 is due primarily to higher trade inventory declines on PM USA's brands as well as share losses on its portfolio brands. For the first nine months of 2009, PM USA's domestic cigarette shipment volume of 112.5 billion units was 12.5% lower than the prior-year period, but was estimated to be down about 10% when adjusted for changes in trade inventories and calendar differences. Total cigarette industry volume was down an estimated 8% in the first nine months of 2009 when adjusted for trade inventory changes and calendar differences. The difference in PM USA's volume decline rate versus the total cigarette industry for the first nine months of 2009 is due primarily to volume lost during the period of FET-related price gap dislocation dislocation, displacement of a body part, usually a bone. When a bone is dislocated, the ends of opposing bones are usually forced out of connection with one another. In the process, bruising of tissues and tearing of ligaments may occur. , higher trade inventory declines on PM USA's brands, as well as share losses on its portfolio brands. PM USA's cigarette volume performance is summarized in Table 6 below. [TABLE OMITTED] Note: Volume includes units sold as well as promotional units, but 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. , U.S. Territories, Overseas Military, Duty Free and 2008 contract manufacturing for PMI; percent volume change calculation is based on units to the nearest million. Marlboro's retail share for the third quarter of 2009 and the first nine months of 2009 each increased 0.1 share point versus the year-ago periods to 41.9%. Marlboro gained 0.7 share points sequentially versus the second quarter of 2009 with balanced retail share growth of 0.4 share points on Marlboro non-menthol and 0.3 share points on Marlboro Menthol menthol, white crystalline substance with a characteristic pungent odor. It is derived from the oil of the peppermint plant, Mentha piperita (see mint), or prepared synthetically from coal tar. . PM USA's retail share performance for cigarettes is summarized in Table 7 below. [TABLE OMITTED] Note: Retail share performance is based on data from the Information Resources (1) The data and information assets of an organization, department or unit. See data administration. (2) Another name for the Information Systems (IS) or Information Technology (IT) department. See IT. , Inc. IRI/Capstone Integrated Retail Panel, which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes. The panel was not designed to capture sales through other channels, including the Internet and direct mail. Effective in the first quarter of 2009, cigarettes segment retail share results are based on a retail tracking service, the IRI/Capstone Integrated Retail Panel. This new service was developed to provide a comprehensive measure of market share in retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → selling cigarettes similar to the previous service. Market share data for 2008 has been restated to reflect this new service. SMOKELESS PRODUCTS Business Results Altria acquired UST and its 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. business, USSTC, on January 6, 2009. As a result, USSTC's financial results from January 6through September 30, 2009 are included in Altria's 2009 consolidated and segment results for the nine months ending September 30. In addition, the smokeless products segment includes PM USA's smokeless products. In the third quarter of 2009, net revenues for the smokeless products segment were $352 million, and revenues net of excise taxes were $326 million. For the first nine months of 2009, net revenues were $1.0 billion, and revenues net of excise taxes were $961 million. Reported OCI for the smokeless products segment in the third quarter and for the first nine months of 2009 was negatively impacted by costs related primarily to the acquisition of UST, consisting of employee separation costs, integration costs and inventory adjustments, as well as costs associated with PM USA's smokeless products, and actions taken to enhance the value equation on USSTC's moist moist having a moderate moisture content, slightly wet to the touch. moist dermatitis see moist dermatitis of rabbits. moist grain storage grain stored at about 30% moisture in airtight silos. smokeless tobacco (MST See micro systems technology. ) brands. Excluding exit, integration and acquisition-related costs, adjusted OCI was $156 million in the third quarter of 2009 and $495 million for the first nine months of 2009 as shown in Table 8 below. [TABLE OMITTED] In the first half of 2009, USSTC measured the smokeless products segment's marketplace performance in terms of the company's share of the MST category. Effective in the third quarter of 2009, management of the smokeless businesses changed the measurement of the volume and market share of the smokeless products segment to include MST and spit-less tobacco products. Management believes this new definition of the category provides a more comprehensive measure of Altria's smokeless products segment marketplace performance. Smokeless products' volume and retail shares have been restated to reflect this new measurement. USSTC's and PM USA's combined smokeless products domestic shipment volume for the third quarter of 2009 and the first nine months of 2009 declined 4.5% and 4.3%, respectively, versus the prior-year periods. The combined smokeless products domestic shipment volume for the three- and nine-month periods was estimated to be essentially flat and down 2%, respectively, when adjusted for trade inventory changes, the timing of returns from retail, the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of multi-pack deals and the discontinuation of USSTC's Rooster rooster its crowing at dawn heralds each new day. [Western Folklore: Leach, 329] See : Dawn rooster symbol of maleness. [Folklore: Binder, 85] See : Virility brand. Management believes that the estimated long-term growth rate for smokeless products industry volume remained at 7%. USSTC's and PM USA's combined volume performance for smokeless products is summarized in Table 9 below. [TABLE OMITTED] Note: Other includes PM USA smokeless products. Volume includes cans and packs sold as well as promotional units, and excludes international volume. One pack of snus is equivalent to a can of MST. Volume from 2008 represents domestic volume shipped by USSTC prior to the UST acquisition. Additionally, nine months ended September 30, 2009 includes 10.9 million cans of domestic volume shipped by USSTC prior to the UST acquisition. Percent volume change calculation is based on units to the nearest thousand. USSTC's and PM USA's combined premium retail share in the third quarter of 2009 stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. and was unchanged versus the second quarter of 2009. Copenhagen's retail share gained 0.3 share points versus the second quarter of 2009 as the brand benefited from USSTC's actions to enhance its value equation. Skoal's retail share declined 0.3 share points versus the second quarter of 2009; however, USSTC is encouraged by the stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of Skoal's retail share as it maintained a share of approximately 23.6% during the July through September period. Overall, USSTC's and PM USA's combined retail share of smokeless products in the third quarter of 2009 was down 0.4 share points versus the second quarter of 2009 to 54.0%, due primarily to share losses in USSTC's discount brand portfolio. The companies' combined quarterly retail share performance for smokeless products is summarized in Table 10 below. [TABLE OMITTED] Note: Other includes PM USA smokeless tobacco products. Retail share performance (full quarterly results) is based on data from Information Resources, Inc. (IRI Iri (ē`rē`), former city, North Jeolla (Cholla) prov., SW South Korea. An agricultural center and transportation hub, it was absorbed into Iksan. ), InfoScan Smokeless Tobacco Database for Food, Drug, Mass Merchandisers (excluding Wal-Mart) and Convenience trade classes, which tracks smokeless products market share performance. Smokeless Products is defined as moist smokeless and spit-less tobacco products. One pack of snus or other spit-less tobacco product is equivalent to a can of MST for share measurement purposes. It is IRI's standard practice to periodically refresh (1) To continuously charge a device that cannot hold its content. CRTs must be refreshed, because the phosphors hold their glow for only a few milliseconds. Dynamic RAM chips require refreshing to maintain their charged bit patterns. See vertical scan frequency and redraw. their InfoScan syndicated services, which would restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state retail share results that were previously released. Based on the previous MST-only market share measurement USSTC's premium share of MST in the third quarter of 2009 was unchanged versus the second quarter of 2009 at 48.4%. Copenhagen's MST retail share increased 0.2 share points to 24.0% and Skoal's MST retail share declined 0.2 share points to 24.4%. USSTC's MST retail share in the third quarter of 2009 declined 0.3 share points to 55.6% versus the second quarter of 2009. CIGARS Business Results Net revenues for the cigars segment in the third quarter of 2009 increased 56.1% to $153 million, reflecting higher pricing related to the FET increase, and higher volume. Revenues net of excise taxes for the cigars segment increased 17.9% to $99 million, due primarily to higher pricing and volume. For the first nine months of 2009, net revenues for the cigars segment increased 33.1% to $386 million, reflecting higher pricing and excise taxes, and revenues net of excise taxes increased 11.0% to $272 million, due primarily to higher pricing. Revenues for the cigars segment are summarized in Table 11 below. [TABLE OMITTED] Reported OCI for the cigars segment in the third quarter of 2009 increased 32.4% versus the prior-year period to $49 million, due primarily to higher pricing and volume. Adjusted OCI for cigars, which excludes integration costs, increased 6.5% in the third quarter of 2009 versus the prior-year period to $49 million. For the first nine months of 2009, reported OCI for the cigars segment increased 8.6% to $139 million versus the prior-year period. Excluding integration costs, adjusted OCI for the cigars segment increased 4.3% to $146 million as shown in Table 12 below. [TABLE OMITTED] *Adjusted OCI margins are calculated as adjusted OCI, divided by revenues net of excise taxes. Middleton's third-quarter cigar volume increased 3.9% versus the prior-year period to 341 million units. For the first nine months of 2009, Middleton's cigar shipment volume declined 3.9% versus the prior-year period. Volume results in the three- and nine-month periods were estimated to be relatively stable when adjusted for changes in trade inventories and Middleton's migration to the Altria Sales & Distribution system, as well as the timing of promotional shipments. Middleton believes that the long-term growth rate for machine-made large cigars industry volume remained 3%, however, the industry growth rate has slowed after the FET increase. Middleton's volume performance for cigars is summarized in Table 13 below. [TABLE OMITTED] Note: Percent volume change calculation is based on units to the nearest thousand. Middleton achieved a 31.4% retail share of the machine-made large cigars segment in the third quarter of 2009, up 0.6 share points versus the prior-year period. Black & Mild's third-quarter retail share increased 0.7 share points versus the prior-year period to 30.9%, due primarily to new product introductions. Middleton launched Black & Mild Wood Tip and Black & Mild Wood Tip Wine earlier this year. For the first nine months of 2009, Black & Mild's retail share increased 1.3 share points versus the prior-year period. Middleton's retail share performance for cigars is summarized in Table 14 below. [TABLE OMITTED] Note: Retail share performance is based on data from IRI, InfoScan Cigar Database for Food, Drug, Mass Merchandisers (excluding Wal-Mart) and Convenience trade classes, which tracks machine-made large cigars market share performance. Effective with the first quarter of 2009, cigar retail share results are based on a retail tracking service provided by IRI. This new service was developed to provide a representation of retail business performance in key trade channels. Market share data for 2008 has been restated to reflect this new service. It is IRI's standard practice to periodically refresh their InfoScan syndicated services, which would restate retail share results that were previously released. WINE Business Results Altria acquired UST and its premium wine business, Ste. Michelle, on January 6, 2009. As a result, Ste. Michelle's financial results from January 6 through September 30, 2009 are included in Altria's 2009 consolidated and segment results for the nine months ending September 30. Net revenues for the three- and nine-month periods were $102 million and $271 million, respectively. Reported OCI for the wine segment in the third quarter of 2009 was $12 million, which included exit, integration and acquisition-related costs of $7 million. Excluding these costs, the adjusted OCI for the wine segment was $19 million in the third quarter of 2009. For the first nine months of 2009, reported OCI for the wine segment was $22 million, which included exit, integration and acquisition costs of $21 million. Excluding these costs, adjusted OCI was $43 million for the nine months ending September 30, 2009. Ste. Michelle's wine shipment volume of 1.5 million cases in the third quarter of 2009 was 2.0% higher than the prior-year period, due primarily to higher off-premise channel sales. The off-premise channel includes supermarkets and liquor liquor /li·quor/ (lik´er) (li´kwor) pl. liquors, liquo´res [L.] 1. a liquid, especially an aqueous solution containing a medicinal substance. 2. stores. Ste. Michelle's volume performance for wine is summarized in Table 15 below. [TABLE OMITTED] Note: Volume from 2008 represents domestic volume shipped by Ste. Michelle prior to the UST acquisition. Percent volume change calculation is based on units to the nearest hundred. Ste. Michelle's retail volume, as measured by Nielsen Total Wine Database - U.S. Food & Drug (Nielsen), increased 9% in the third quarter of 2009 and 11% in the first nine months of 2009, versus the prior-year periods. The total wine industry's retail volume for both the three- and nine-month periods, as measured by Nielsen, increased 2% versus the prior-year periods. FINANCIAL SERVICES Business Results Reported OCI for the financial services segment in the third quarter of 2009 was $57 million, an increase of $64 million versus the prior-year period, due primarily to higher gains on asset sales in the third quarter of 2009, and an increase in 2008 to the allowance for losses. For the first nine months of 2009, reported OCI for the financial services segment increased $163 million versus the prior-year period to $260 million, due primarily to higher gains on asset sales. The allowance for losses at the end of the third quarter of 2009 was $266 million, which reflects a decrease of $49 million from the second quarter of 2009 due to the write-off of a lease related to Motors Liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy Company, formerly known as General Motors Corporation. PMCC remains focused on managing its portfolio of leased assets in order to maximize financial contributions to Altria. PMCC is not making new investments and expects that its OCI will vary over time as investments mature or are sold. Altria's Profile Altria directly or indirectly owns 100% of each of PM USA, USSTC, Middleton, Ste. Michelle, and PMCC. Altria holds a continuing economic and voting interest Voting interest in business and accounting is a percentage of voting stock owned. This notion is different from economic interest that refers to a percentage of all the equity issued, including preferred stock, warrants, and so on. in SABMiller. The brand portfolio of Altria's tobacco operating companies includes such well-known names as Marlboro, Copenhagen, Skoal and Black & Mild. Ste. Michelle produces and markets premium wines sold under 20 different labels including Chateau Ste. Michelle The Chateau Ste. Michelle is a Washington winery in Woodinville, Washington. They are noted for their bestselling Riesling (as the largest single producer of Riesling in the world), but produce wines of many classic varietals and some experimental wines on a per-year basis. Ste. and Columbia Crest, and it exclusively distributes and markets Antinori products and Champagne Nicolas Feuillatte 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. . Trademarks and service marks related to Altria referenced in this release are the property of, or licensed by, Altria or its subsidiaries. More information about Altria is available at www.altria.com. 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. Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in this press release are described in Altria's publicly filed reports, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2008 and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the period ended June 30, 2009. These factors include the following: Altria's tobacco businesses (PM USA, USSTC and Middleton) are subject to intense price competition; changes in consumer preferences and demand for their products; fluctuations in raw material availability, quality and cost; reliance on key facilities and suppliers; fluctuations in levels of customer inventories; the effects of global, national and local economic and market conditions; changes to income tax laws; legislation, including actual and potential federal and state excise tax increases; increasing marketing and regulatory restrictions; the effects of price increases related to excise tax increases and concluded tobacco 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. 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, including the Family Smoking Prevention and Tobacco Control Act that granted the Food and Drug Administration broad authority to regulate tobacco products; privately imposed smoking restrictions; and governmental and grand jury investigations. 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; and to improve productivity. There can be no assurance that Altria will achieve the synergies expected of the UST acquisition. Altria's subsidiaries continue to be subject to litigation, including risks associated with adverse jury and judicial determinations, courts reaching conclusions at variance with the companies' understanding of applicable law and bonding requirements in the limited number of jurisdictions that do not limit the dollar amount of appeal bonds. Altria 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 other than in the normal course of its public disclosure obligations. All subsequent written and oral forward-looking statements attributable to Altria or any person acting on its behalf are expressly qualified in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. by the cautionary statements referenced above. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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