Altria Group, Inc. (Altria) (NYSE: MO) today announced its 2012 first-quarter results and reaffirmed its 2012 full-year guidance for reported and adjusted diluted EPS.
“Altria delivered strong financial results in the first quarter of 2012 as adjusted diluted EPS increased 11.4%,” said Michael E. Szymanczyk, Chairman and Chief Executive Officer of Altria. “The performance of our tobacco companies’ premium brands and effective cost management drove increases in adjusted operating companies income and margins in the smokeable and smokeless products segments.”
“Our tobacco companies are pursuing initiatives to build their premium brands for the long-term. PM USA supported Marlboro’s new brand architecture with brand-building initiatives, which helped drive Marlboro’s year-over-year and sequential retail share increases,” said Mr. Szymanczyk. “New products introduced over the past few years by USSTC helped drive Copenhagen and Skoal’s combined performance and contributed to the smokeless products segment’s strong first-quarter results.”
Conference CallA conference call with the investment community and news media will be webcast on April 26, 2012 at 9:00 a.m. Eastern Time. Access to the webcast is available at altria.com. Cost Management Altria’s current cost reduction program for its tobacco and service company subsidiaries remains on track. The program, which was announced in October 2011, is expected to deliver $400 million in annualized savings against previously planned spending by the end of 2013. Altria estimates total net pre-tax restructuring charges in connection with this program of approximately $300 million, substantially all of which will result in cash expenditures, related primarily to employee separation costs of approximately $220 million, and other associated net costs of $80 million. These other associated net costs include lease termination and asset impairment charges, partially offset by a curtailment gain related to a postretirement benefit plan. Altria recorded net pre-tax charges totaling $228 million over the past two quarters, reflecting restructuring charges of $224 million in the fourth quarter of 2011 and $4 million in the first quarter of 2012. Altria expects to incur the balance of the pre-tax restructuring charges later in 2012.
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