News
Altria Group, Inc. (Altria) Reports 2008 First-Quarter Results
RICHMOND, VA.-(Business Wire)-April 24, 2008 - Regulatory News:
Altria Group, Inc. (NYSE: MO) today announced reported diluted earnings per share from continuing operations of $0.29 in the first quarter of 2008 versus $0.33 in the first quarter of 2007, down 12.1% versus the prior year. This quarter's results were impacted by net costs and charges related to the spin-off of Philip Morris International Inc. (PMI) and the closure of Altria's headquarters in New York as well as other items detailed in Schedule 2. Adjusted for items detailed in Table 1, diluted earnings per share from continuing operations were up 12.1% to $0.37 versus $0.33 in the year-earlier period.
"In the first quarter, Altria successfully completed the spin-off of PMI, which we expect will further enhance shareholder value," said Michael E. Szymanczyk, Chairman and Chief Executive Officer of Altria Group, Inc. "In conjunction with this spin-off, Altria also completed its corporate restructuring, including relocating our corporate headquarters to Richmond, Virginia. These actions will substantially reduce the company's cost structure."
"Adjusted for special items, Altria delivered solid earnings per share growth of 12.1%," Mr. Szymanczyk said. "PM USA achieved strong retail share growth behind the strength of Marlboro. As expected, PM USA's operating income results were lower than last year. PM USA expects income performance to improve as the year unfolds. We are pleased with John Middleton's strong income, volume and share performance. This is the first full quarter that John Middleton is reporting results as an Altria operating company."
Spin-off of Philip Morris International Inc. Completed
On March 28, 2008, Altria completed the spin-off of PMI to its shareholders. Altria's shareholders received one share of PMI common stock for every share of Altria common stock outstanding as of the March 19, 2008 record date. Additional details of the spin-off are available at www.altria.com/pmispinoff or in the information statement mailed to all shareholders of Altria common stock as of the record date.
Altria's 2008 reported results and previous-year results reflect PMI as a discontinued operation. As such, net revenues and operating companies income for PMI are excluded from the company's continuing results, while the net earnings impact is included as a single line item.
Tender Offer for Altria Notes Completed
On February 29, 2008, in connection with the PMI spin-off, Altria and its subsidiary, Altria Finance (Cayman Islands) Ltd., completed debt tender offers and consent solicitations to purchase for cash $2.3 billion of notes and debentures denominated in U.S. dollars and EUR 373 million in euro-denominated bonds. Altria arranged a $4.0 billion bridge loan facility to finance the tender offer. Altria intends to access the public-debt market to replace the retired debt. As a result of the tender offer and consent solicitations, Altria recorded a $393 million pre-tax loss for the early retirement of this debt.
Sale of NY Headquarters Building Completed
On March 25, 2008, Altria completed the sale of its corporate headquarters building at 120 Park Avenue in New York City. Altria recorded a pre-tax gain of $404 million on the sale of the headquarters building.
Corporate Restructuring
In connection with the PMI spin-off, Altria has restructured its corporate headquarters functions, which included the move of its corporate headquarters to Richmond, Virginia. Altria incurred pre-tax charges of $247 million, consisting primarily of employee separation costs, as well as investment banking and legal fees associated with the PMI spin-off. This restructuring program is expected to yield approximately $250 million in annual savings, beginning in 2009.
Share Repurchase Program Commenced
As previously announced, the Board of Directors has authorized a $7.5 billion two-year share repurchase program. Altria began repurchasing shares as part of this program in April 2008.
Conference Call
A conference call with members of the investment community and news media will be webcast today at 5 p.m. Eastern Time. Access to the webcast is available at www.altria.com.
2008 First-Quarter Results Excluding Special Items
Adjusted for the items shown in the table below, diluted earnings per share from continuing operations increased 12.1% to $0.37 for the first quarter of 2008. -0- *T Table 1 First Quarter 2008 2007 Change ——————————- Reported diluted EPS from continuing operations $0.29 $0.33 (12.1)% Asset impairment, exit, integration and implementation costs 0.08 0.02 Recoveries from airline industry exposure - (0.04) Gain on sale of corporate headquarters (0.12) - Loss on early extinguishment of debt 0.12 - Interest on tax reserve transfers to Kraft - 0.02 ——— ——— Diluted EPS from continuing operations, adjusted for the above items $0.37 $0.33 12.1% ——————————————————————————————————— *T
2008 Full-Year Forecast
Altria reaffirms its 2008 earnings per share guidance. Altria forecasts that 2008 adjusted full-year diluted earnings per share from continuing operations will grow in the range of $1.63 to $1.67. This represents a 9% to 11% growth rate from an adjusted base of $1.50 per share in 2007 as shown in Table 2 below. This full-year earnings per share forecast reflects expected stronger earnings per share growth in the second half of this year compared to the first half. This forecast also reflects the income contribution from John Middleton, Inc. (Middleton), the impact of share repurchases and a higher effective tax rate. Altria also expects full-year operating companies income growth from continuing operations in the mid-single digits on a reported and underlying basis. The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections. -0- *T Table 2 Full-year 2007 ——————— Reported diluted EPS from continuing operations $1.48 Tax items (0.09) Recoveries from airline industry exposure (0.06) Interest on tax reserve transfers to Kraft 0.02 Asset impairment, exit and implementation costs 0.15 ——————— Diluted EPS from continuing operations, adjusted for the above items $1.50 ——————————————————————————————————— *T ALTRIA GROUP, INC.
As described in "Note 15. Segment Reporting" of Altria's 2007 Annual Report, management reviews operating companies income, which is defined as operating income before corporate expenses and amortization of intangibles, to evaluate segment performance and allocate 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 Consolidated Statements of Earnings contained in this release.
Altria has revised its reporting segments to reflect the PMI spin-off and the December 2007 acquisition of Middleton. Beginning with the first quarter of 2008, Altria's reporting segments are Cigarettes and Other Tobacco Products, manufactured and sold by Philip Morris USA (PM USA); Cigars, manufactured and sold by Middleton; and Financial Services, provided by Philip Morris Capital Corporation (PMCC).
All references in this news release are to continuing operations, unless otherwise noted. Schedules reflecting the PMI spin-off and the Kraft Foods Inc. (Kraft) spin-off with associated revised results for the years 2006 and 2007 are attached.
2008 First-Quarter Results
Net revenues increased 2.8% to $4.4 billion. Operating income increased 8.4% to $1.2 billion, primarily driven by the $404 million pre-tax gain on the sale of the corporate headquarters building, partially offset by a pre-tax charge of $247 million for the corporate restructuring, and other items detailed in Schedule 2.
Earnings from continuing operations decreased 11.8% to $614 million, reflecting a $393 million loss on the early extinguishment of debt related to the bond tender offer, partially offset by the items mentioned above and interest on tax reserve transfers to Kraft in 2007.
Net earnings, which include PMI and Kraft as discontinued operations and the factors mentioned above, decreased 10.8% to $2.5 billion. This decrease was primarily due to the spin-off of Kraft in the first quarter of 2007, partially offset by higher earnings from PMI in the first quarter of 2008. Diluted earnings per share, including discontinued operations as detailed on Schedule 1, decreased 10.8% to $1.16. CIGARETTES and OTHER TOBACCO PRODUCTS
2008 First-Quarter Results
PM USA achieved strong retail cigarette share results for the first-quarter 2008, driven by Marlboro, which increased its retail market share 0.7 points to 41.5% in the first quarter.
Net revenues and revenues net of excise taxes were essentially unchanged at $4.2 billion and $3.4 billion, respectively. Operating companies income decreased 8.0% to $1.0 billion compared to the year-earlier period. The decline was driven by lower volume, costs related to the reduction of volume produced for PMI, higher resolution expenses, the timing of promotional expenditures and a $26 million pre-tax charge for the previously announced closure of the Cabarrus, NC cigarette manufacturing facility. These factors were partially offset by lower wholesale promotional allowance rates.
PM USA's cigarette shipment volume of 40.1 billion units was 1.2% lower than the prior-year period, but was estimated to be down approximately 3.5% when adjusted for changes in trade inventories. PM USA estimates that total cigarette industry volume declined approximately 4% in the first quarter. For the full-year 2008, PM USA estimates a total cigarette industry volume decline of approximately 3%.
Cigarette volume performance by brand for PM USA is summarized in the table below: -0- *T PM USA Cigarette Volume* by Brand (Billion Units) Q1 2008 Q1 2007 Change** ——————————————————————————————————— Marlboro 33.2 33.3 (0.2)% Parliament 1.3 1.3 (3.8)% Virginia Slims 1.5 1.7 (9.5)% Basic 3.1 3.2 (3.0)% ———- ———- ———— Focus Brands 39.1 39.5 (1.0)% Other PM USA 1.0 1.1 (8.3)% ———- ———- ———— Total PM USA 40.1 40.6 (1.2)% *T
*Unit volume includes units sold as well as promotional units, and excludes Puerto Rico, U.S. Territories, Overseas Military and Philip Morris Duty Free Inc. **Calculation based on millions of units.
As shown in the following table, PM USA's total retail share increased to 50.9% in the first quarter of 2008, driven by Marlboro, which had a strong retail share gain of 0.7 share points. -0- *T PM USA Quarterly Retail Share* Q1 2008 Q1 2007 Change ——————————————————————————————————— Marlboro 41.5% 40.8% 0.7pp Parliament 1.9% 1.9% 0.0pp Virginia Slims 2.1% 2.2% -0.1pp Basic 4.0% 4.1% -0.1pp ———- ———- ———— Focus Brands 49.5% 49.0% 0.5pp Other PM USA 1.4% 1.4% 0.0pp ———- ———- ———— Total PM USA 50.9% 50.4% 0.5pp *T
*Retail share performance is based on data from the Information Resources, Inc. (IRI)/Capstone Total 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 internet and direct mail.
As part of its adjacency growth strategy to develop new revenue and income sources for the future, PM USA is test marketing Marlboro Snus, which is a spit-free, smokeless tobacco pouch product designed especially for adult smokers. PM USA began testing Marlboro Snus in Dallas, Texas in August of 2007 and expanded the test into the Indianapolis, Indiana area in the first quarter of 2008. PM USA believes snus offers long-term potential as an alternative product for adult smokers as well as other adult tobacco users.
In addition, PM USA is test marketing Marlboro Moist Smokeless Tobacco, which is designed to provide a premium quality product at an attractive price for adult moist smokeless tobacco consumers. PM USA began testing Marlboro Moist Smokeless Tobacco in the Atlanta area in October 2007, and expanded the test market to include additional counties in the greater Atlanta, Georgia area in the first quarter of 2008. CIGARS
2008 First-Quarter Results
As previously announced, Altria completed the acquisition of Middleton, a leading manufacturer of machine-made large cigars in December 2007. This is the first full quarter that Altria is reporting results for Middleton.
Middleton's first-quarter net revenues were $91 million and revenues net of excise taxes were $76 million. Operating companies income in the first quarter was $41 million, which includes a pre-tax charge of $2 million for integration costs. Middleton's first-quarter cigar shipment volume grew 8.2% versus year-ago to 312 million units, driven by its leading brand Black & Mild.
Middleton's first-quarter retail share through February 2008 increased 2.7 share points versus year-ago to 26.8% of the machine-made large cigar segment, driven by Black & Mild. Retail share for Black & Mild increased 3.0 share points versus year-ago to 25.9% of the machine-made large cigar segment. Retail share performance is based on data from the most recent IRI Syndicated Reviews Database (February 2008 year-to-date), which is a tracking service that uses a sample of stores to project market share performance across multiple product categories, including machine-made large cigars.
Middleton entered into an agreement with PM USA to leverage PM USA's distribution network and field sales force to represent Middleton's brands. In March 2008, PM USA's sales force began representing Middleton's brands at retail and supporting the execution of Middleton's trade marketing programs. FINANCIAL SERVICES
2008 First-Quarter Results
PMCC reported operating companies income of $74 million for the first quarter of 2008 versus $160 million for the year-earlier period. First-quarter 2007 results reflected a cash recovery of $129 million at PMCC from assets that had been previously written down. Excluding the 2007 recovery, operating companies income for the first quarter of 2008 was favorable due to higher asset management gains.
PMCC remains focused on managing its portfolio of leased assets to maximize gains and cash flows from income generating assets, as well as asset sales and related activities. PMCC is not making new investments and expects that its operating companies income will vary over time as investments mature or are sold.
Altria Group, Inc. Profile
As of March 31, 2008, Altria owned 100% of Philip Morris USA Inc., John Middleton, Inc. and Philip Morris Capital Corporation, and approximately 28.6% of SABMiller plc. The brand portfolio of Altria's tobacco operating companies includes such well-known names as Marlboro, Parliament, Virginia Slims, Basic and Black & Mild. Altria recorded 2007 net revenues from continuing operations, which includes excise taxes billed to customers, of $18.7 billion.
Trademarks and service marks referenced in this release are the property of, or licensed by, Altria Group, Inc. or its subsidiaries.
Forward-Looking and Cautionary Statements
This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. The following important factors could cause actual results and outcomes to differ materially from those contained in such forward-looking statements.
Altria's tobacco subsidiaries (PM USA and Middleton) are subject to intense price competition; changes in consumer preferences and demand for their products; fluctuations in raw material costs; fluctuations in levels of customer inventories; the effects of local economic and market conditions; 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's tobacco subsidiaries continue to be subject to litigation, including risks associated with adverse jury and judicial determinations, and courts reaching conclusions at variance 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 increases; 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 the use of tobacco products and exposure to environmental tobacco smoke; governmental regulation; privately imposed smoking restrictions; and governmental and grand jury investigations.
Altria and its subsidiaries are subject to other risks detailed from time to time in its publicly filed documents, including its Annual Report on Form 10-K for the period ended December 31, 2007. 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. -0- *T Schedule 1 ALTRIA GROUP, INC. and Subsidiaries Condensed Consolidated Statements of Earnings For the Quarters Ended March 31, (in millions of dollars, except per share data) (Unaudited) 2008 2007 % Change ————————————- Net revenues $4,410 $4,288 2.8 % Cost of sales 1,887 1,788 5.5 % Excise taxes on products (*) 806 800 0.8 % ———- ———- Gross profit 1,717 1,700 1.0 % Marketing, administration and research costs 551 539 Asset impairment and exit costs 11 - Recoveries from airline industry exposure - (129) ———- ———- Operating companies income 1,155 1,290 (10.5)% Amortization of intangibles 2 - General corporate expenses 97 110 Gain on sale of corporate headquarters building (404) - Corporate asset impairment and exit costs 247 61 ———- ———- Operating income 1,213 1,119 8.4 % Interest and other debt (income) expense, net (16) 104 Loss on early extinguishment of debt 393 - Equity earnings in SABMiller (143) (98) ———- ———- Earnings from continuing operations before income taxes 979 1,113 (12.0)% Provision for income taxes 365 417 (12.5)% ———- ———- Earnings from continuing operations 614 696 (11.8)% Earnings from discontinued operations, net of income taxes and minority interest 1,840 2,054 ———- ———- Net earnings $2,454 $2,750 (10.8)% ======= ======= Per share data: Basic earnings per share: Continuing operations $ 0.29 $ 0.33 (12.1)% Discontinued operations $ 0.87 $ 0.98 ———- ———- Net earnings $ 1.16 $ 1.31 (11.5)% ======= ======= Diluted earnings per share: Continuing operations $ 0.29 $ 0.33 (12.1)% Discontinued operations $ 0.87 $ 0.97 ———- ———- Net earnings $ 1.16 $ 1.30 (10.8)% ======= ======= Weighted average number of shares outstanding: Basic 2,107 2,097 0.5 % Diluted 2,122 2,112 0.5 % (*) The segment detail of excise taxes on products sold is shown in Schedule 2. *T -0- *T Schedule 2 ALTRIA GROUP, INC. and Subsidiaries Selected Financial Data by Business Segment For the Quarters Ended March 31, (in millions of dollars) (Unaudited) Cigarettes and other tobacco Financial Net Revenues products Cigars services Total —————————————————————- 2008 $4,233 $91 $ 86 $4,410 2007 4,245 - 43 4,288 % Change (0.3)% - 100.0% 2.8% Reconciliation: ————————————— For the quarter ended March 31, 2007 $4,245 $ - $ 43 $4,288 Recoveries from airline industry exposure - 2007 - - - - —————— ———- —————- ————— - - - - —————— ———- —————- ————— Asset impairment and exit costs - 2008 - - - - Integration costs - 2008 - - - - Implementation costs - 2008 - - - - —————— ———- —————- ————— - - - - —————— ———- —————- ————— Acquired business - 91 - 91 Operations (12) - 43 31 —————— ———- —————- ————— For the quarter ended March 31, 2008 $4,233 $91 $ 86 $4,410 ============ ======= =========== ========== The detail of excise taxes on products sold is as follows: 2008 $ 791 $ 15 $ - $ 806 2007 $ 800 $ - $ - $ 800 Cigarettes and other tobacco Financial Operating Companies Income products Cigars services Total —————————————————————- 2008 $1,040 $41 $ 74 $1,155 2007 1,130 - 160 1,290 % Change (8.0)% - (53.8)% (10.5)% Reconciliation: ————————————— For the quarter ended March 31, 2007 $1,130 $ - $ 160 $1,290 Recoveries from airline industry exposure - 2007 - - (129) (129) —————— ———- —————- ————— - - (129) (129) —————— ———- —————- ————— Asset impairment and exit costs - 2008 (11) - - (11) Integration costs - 2008 - (2) - (2) Implementation costs - 2008 (15) - - (15) —————— ———- —————- ————— (26) (2) - (28) —————— ———- —————- ————— Acquired business - 43 - 43 Operations (64) - 43 (21) —————— ———- —————- ————— For the quarter ended March 31, 2008 $1,040 $41 $ 74 $1,155 ============ ======= =========== ========== *T -0- *T Schedule 3 ALTRIA GROUP, INC. and Subsidiaries Net Earnings and Diluted Earnings Per Share For the Quarters Ended March 31, (in millions of dollars, except per share data) (Unaudited) Diluted Net Earnings E.P.S. —————— ———— 2008 Continuing Earnings $ 614 $ 0.29 2007 Continuing Earnings $ 696 $ 0.33 % Change (11.8)% (12.1)% Reconciliation: ———————————————————————— 2007 Continuing Earnings $ 696 $ 0.33 2007 Asset impairment and exit costs 36 0.02 2007 Interest on tax reserve transfers to Kraft 50 0.02 2007 Recoveries from airline industry exposure (83) (0.04) ——————————- 3 - ——————————- 2008 Asset impairment, exit, integration and implementation costs (172) (0.08) 2008 Gain on sale of corporate headquarters building 263 0.12 2008 Loss on early extinguishment of debt (256) (0.12) ——————————- (165) (0.08) ——————————- Change in tax rate 6 - Operations 74 0.04 ——————————- 2008 Continuing Earnings $ 614 $ 0.29 2008 Discontinued Earnings $1,840 $ 0.87 ——————————- 2008 Net Earnings $2,454 $ 1.16 ===================== 2008 Continuing Earnings Adjusted For Special Items $ 779 $ 0.37 2007 Continuing Earnings Adjusted For Special Items $ 699 $ 0.33 % Change 11.4 % 12.1 % *T -0- *T Schedule 4 ALTRIA GROUP, INC. and Subsidiaries Condensed Consolidated Statements of Earnings Revised for Discontinued Operations for the quarters ended March 31, June 30, September 30, and December 31, 2007 (in millions of dollars, except per share data) (Unaudited) Q1 2007 Q2 2007 Q3 2007 Q4 2007 Revised Revised Revised Revised —————————————————- Net revenues $ 4,288 $4,861 $4,987 $4,528 Cost of sales 1,788 2,021 2,096 1,922 Excise taxes on products 800 899 927 826 ———— ———— ———— ———— Gross profit 1,700 1,941 1,964 1,780 Marketing, administration and research costs 539 558 621 639 Asset impairment and exit costs - 318 10 16 Recoveries from airline industry exposure (129) (78) (7) - ———— ———— ———— ———— Operating companies income 1,290 1,143 1,340 1,125 General corporate expenses 110 116 115 86 Corporate asset impairment and exit costs 61 - 3 34 ———— ———— ———— ———— Operating income 1,119 1,027 1,222 1,005 Interest and other debt expense, net 104 59 27 15 Equity earnings in SABMiller (98) (162) (132) (118) ———— ———— ———— ———— Earnings from continuing operations before income taxes 1,113 1,130 1,327 1,108 Provision for income taxes 417 415 427 288 ———— ———— ———— ———— Earnings from continuing operations 696 715 900 820 Earnings from discontinued operations, net of income taxes and minority interest 2,054 1,500 1,733 1,368 ———— ———— ———— ———— Net earnings $ 2,750 $2,215 $2,633 $2,188 ======== ======== ======== ======== Per share data: (*) Basic earnings per share: Continuing operations $ 0.33 $ 0.34 $ 0.43 $ 0.39 Discontinued operations 0.98 0.71 0.82 0.65 ———— ———— ———— ———— Net earnings $ 1.31 $ 1.05 $ 1.25 $ 1.04 ======== ======== ======== ======== Diluted earnings per share: Continuing operations $ 0.33 $ 0.34 $ 0.43 $ 0.39 Discontinued operations 0.97 0.71 0.81 0.64 ———— ———— ———— ———— Net earnings $ 1.30 $ 1.05 $ 1.24 $ 1.03 ======== ======== ======== ======== Weighted average number of shares outstanding: Basic 2,097 2,101 2,103 2,104 Diluted 2,112 2,116 2,117 2,119 2007 Full Year Revised ———— Net revenues $18,664 Cost of sales 7,827 Excise taxes on products 3,452 ———— Gross profit 7,385 Marketing, administration and research costs 2,357 Asset impairment and exit costs 344 Recoveries from airline industry exposure (214) ———— Operating companies income 4,898 General corporate expenses 427 Corporate asset impairment and exit costs 98 ———— Operating income 4,373 Interest and other debt expense, net 205 Equity earnings in SABMiller (510) ———— Earnings from continuing operations before income taxes 4,678 Provision for income taxes 1,547 ———— Earnings from continuing operations 3,131 Earnings from discontinued operations, net of income taxes and minority interest 6,655 ———— Net earnings $ 9,786 ======== Per share data: (*) Basic earnings per share: Continuing operations $ 1.49 Discontinued operations 3.17 ———— Net earnings $ 4.66 ======== Diluted earnings per share: Continuing operations $ 1.48 Discontinued operations 3.14 ———— Net earnings $ 4.62 ======== Weighted average number of shares outstanding: Basic 2,101 Diluted 2,116 (*) Basic and diluted earnings per share are computed independently for each of the periods presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the total for the year. *T -0- *T Schedule 5 ALTRIA GROUP, INC. and Subsidiaries Condensed Consolidated Statements of Earnings Revised for Discontinued Operations for the quarters ended March 31, June 30, September 30, and December 31, 2006 (in millions of dollars, except per share data) (Unaudited) Q1 2006 Q2 2006 Q3 2006 Q4 2006 Revised Revised Revised Revised ———— ———— ———— ———— Net revenues $ 4,431 $4,840 $4,939 $4,580 Cost of sales 1,735 1,888 1,921 1,843 Excise taxes on products 855 931 938 893 ———— ———— ———— ———— Gross profit 1,841 2,021 2,080 1,844 Marketing, administration and research costs 629 676 709 672 Asset impairment and exit costs - - - 10 Provision for airline industry exposure - 103 - - ———— ———— ———— ———— Operating companies income 1,212 1,242 1,371 1,162 General corporate expenses 96 102 110 119 Corporate asset impairment and exit costs - 32 3 7 ———— ———— ———— ———— Operating income 1,116 1,108 1,258 1,036 Interest and other debt expense, net 104 74 25 22 Equity earnings in SABMiller (116) (112) (109) (123) ———— ———— ———— ———— Earnings from continuing operations before income taxes 1,128 1,146 1,342 1,137 Provision for income taxes 254 440 504 373 ———— ———— ———— ———— Earnings from continuing operations 874 706 838 764 Earnings from discontinued operations, net of income taxes and minority interest 2,603 2,005 2,037 2,195 ———— ———— ———— ———— Net earnings $ 3,477 $2,711 $2,875 $2,959 ======== ======== ======== ======== Per share data: (*) Basic earnings per share: Continuing operations $ 0.42 $ 0.34 $ 0.40 $ 0.37 Discontinued operations 1.25 0.96 0.98 1.04 ———— ———— ———— ———— Net earnings $ 1.67 $ 1.30 $ 1.38 $ 1.41 ======== ======== ======== ======== Diluted earnings per share: Continuing operations $ 0.42 $ 0.34 $ 0.40 $ 0.36 Discontinued operations 1.23 0.95 0.96 1.04 ———— ———— ———— ———— Net earnings $ 1.65 $ 1.29 $ 1.36 $ 1.40 ======== ======== ======== ======== Weighted average number of shares outstanding: Basic 2,082 2,085 2,090 2,092 Diluted 2,101 2,102 2,107 2,110 2006 Full Year Revised ————- Net revenues $18,790 Cost of sales 7,387 Excise taxes on products 3,617 ———— Gross profit 7,786 Marketing, administration and research costs 2,686 Asset impairment and exit costs 10 Provision for airline industry exposure 103 ———— Operating companies income 4,987 General corporate expenses 427 Corporate asset impairment and exit costs 42 ———— Operating income 4,518 Interest and other debt expense, net 225 Equity earnings in SABMiller (460) ———— Earnings from continuing operations before income taxes 4,753 Provision for income taxes 1,571 ———— Earnings from continuing operations 3,182 Earnings from discontinued operations, net of income taxes and minority interest 8,840 ———— Net earnings $12,022 ======== Per share data: (*) Basic earnings per share: Continuing operations $ 1.52 Discontinued operations 4.24 ———— Net earnings $ 5.76 ======== Diluted earnings per share: Continuing operations $ 1.51 Discontinued operations 4.20 ———— Net earnings $ 5.71 ======== Weighted average number of shares outstanding: Basic 2,087 Diluted 2,105 (*) Basic and diluted earnings per share are computed independently for each of the periods presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the total for the year. *T -0- *T Schedule 6 ALTRIA GROUP, INC. and Subsidiaries Condensed Consolidated Balance Sheets (in millions of dollars) (Unaudited) March 31, December 31, 2008 2007 ——————————— Assets ———————————————————————— Cash and cash equivalents $ 4,813 $ 4,842 Other current assets 3,822 3,281 Property, plant and equipment, net 2,207 2,422 Goodwill and other intangible assets, net 3,125 3,125 Investment in SABMiller 4,126 3,960 Other long-term assets 1,868 1,782 Total assets of discontinued operations - 31,736 ——————————— Total consumer products assets 19,961 51,148 Total financial services assets 5,886 6,063 ——————————— Total assets $25,847 $57,211 ====================== Liabilities and Stockholders' Equity ———————————————————————— Current portion of long-term debt 1,269 2,354 Accrued settlement charges 5,167 3,986 Other current liabilities 4,656 4,169 Long-term debt 236 1,885 Accrued postretirement health care costs 1,872 1,916 Other long-term liabilities 2,400 2,406 Total liabilities of discontinued operations - 16,338 ——————————— Total consumer products liabilities 15,600 33,054 Total financial services liabilities 5,539 5,603 ——————————— Total liabilities 21,139 38,657 Total stockholders' equity 4,708 18,554 ——————————— Total liabilities and stockholders' equity $25,847 $57,211 ====================== Total consumer products debt $ 1,505 $ 4,239 Total debt $ 2,005 $ 4,739 *T
Search Our News Using Google Search
Can't find what you want? Try using Google:
