Altria Profit, Revenue Grow as Cigarette Shipments Rise

By Anne Steele 

Altria Group Inc. on Thursday reported profit and revenue growth as the tobacco company saw its cigarette shipments climb.

Earnings beat expectations and shares edged up 0.6% in light premarket trading to $61.90.

Chief Executive Marty Barrington pointed to strength in the company's core tobacco businesses. In its latest quarter, cigarette-shipment volume rose 1.2%.

Altria's cigarette market share edged up to 51.4% from 51.1% a year earlier, led by its discount brands as Marlboro retail share remained flat. The U.S.'s largest tobacco company, Altria is facing stronger competition from No. 2 player Reynolds American Inc., which last June closed a $25 billion acquisition of rival Lorillard Inc.

Altria's earnings rose to $1.22 billion, or 62 cents a share, from $1.02 billion, or 52 cents a share, a year earlier. Excluding litigation costs and other special items, per-share earnings rose to 72 cents from 63 cents. Analysts polled by Thomson Reuters had forecast earnings of 68 cents.

Net revenue after excise taxes was $3.92 billion, up from $3.72 billion a year earlier.

Altria reaffirmed its guidance for 2016 earnings of $3 to $3.05 a share, excluding restructuring charges.

On Tuesday, rival Reynolds American reported a 42% increase in first-quarter sales, driven the acquisition of Lorillard and its Newport cigarette brand.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

April 28, 2016 07:47 ET (11:47 GMT)

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