Altria Cigarette Shipments Decline

Altria Group Inc. on Thursday reported profit and revenue that narrowly missed Wall Street expectations as the tobacco company saw its cigarette shipments slip.

The company also gave an earnings forecast for its new year that fell mostly below Wall Street expectations.

Altria, the U.S.'s largest tobacco company, is facing stronger competition from No. 2 player Reynolds American Inc., which last June closed a $25 billion acquisition of rival Lorillard Inc.

In its latest quarter, Altria said higher pricing helped offset a 2.6% decline in cigarette-shipment volume.

Altria's cigarette market share ticked up to 51.4% from 50.9% a year earlier, led by its discount and Marlboro brands.

Altria's earnings rose slightly to $1.25 billion, or 64 cents a share, from $1.24 billion, or 63 cents a share, a year earlier. Excluding litigation costs and other special items, per-share earnings were 67 cents, while analysts polled by Thomson Reuters forecast earnings of 68 cents.

Net revenue after excise taxes was $4.73 billion, up from $4.61 billion a year earlier.

Analysts had been expecting revenue of $4.75 billion.

For 2016, Altria is expecting earnings of $3 to $3.05 a share, excluding restructuring charges. Analysts had forecast earnings of $3.05 a share.

Write to Chelsey Dulaney at [e-mail]

(END) Dow Jones Newswires

January 28, 2016 08:05 ET (13:05 GMT)

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