Altria reports higher profit, lower revenue
THE TAKE: Tobacco giant Altria Group Inc. reported Tuesday a 5 percent increase in earnings per share on lower revenues. Net revenues during the second quarter fell 2.8 percent to $6.3 billion, primarily because of lower revenues from its smokeable products segment, which was partially offset by higher revenues in its smokeless products and wine segments. Profit grew from lower expenses related to a legal settlement and higher prices.
Revenues: Second-quarter revenues fell 2.8 percent to $6.3 billion from $6.49 billion the previous year. Revenues fell 3.8 percent in the smokeable products segment, grew 7.5 percent in the smokeless tobacco segment and increased 7 percent in the wine segment.
Profit:Net income for the second quarter grew 3.3 percent to $1.26 billion. Earnings per diluted share rose 5 percent to 63 cents per share.
THE COMPANY’S TAKE: “All three of our reportable segments delivered adjusted operating companies income and margin growth in the second quarter and first half,” Marty Barrington, chairman and CEO of Altria, said in a statement. “Altria’s companies also continue to innovate with new products for adult tobacco consumers. Nu Mark’s plans for introducingMarkTen e-cigarettes into a lead market in August of this year are on-track.”