This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Altria Reports 2013 Third-Quarter And Nine-Month Results; Reaffirms 2013 Full-Year EPS Guidance

PM USA’s 2013 nine-month reported domestic cigarettes shipment volume decreased 3.6% primarily due to the industry’s rate of decline and changes in trade inventories, partially offset by retail share gains. After adjusting for changes in trade inventories, PM USA estimates that its 2013 nine-month domestic cigarettes shipment volume was down approximately 4%, in line with the estimated decline rate for total cigarette category volume for the same period. PM USA’s cigarette volume performance for the first nine months of 2013 is summarized in Table 5.

Middleton’s 2013 third-quarter reported cigars shipment volume increased 6.0%. For the first nine months of 2013, Middleton’s reported shipment volume decreased 6.6% primarily due to changes in wholesale inventories and retail share losses. Middleton’s volume performance for machine-made large cigars is summarized in Table 5.
 
Table 5 - Smokeable Products: Shipment Volume (sticks in millions)
   
Third Quarter    

Nine Months Ended

September 30,
2013   2012   Change 2013   2012   Change
Cigarettes:        
Marlboro 29,399 28,954 1.5 % 83,953 87,248 (3.8 )%
Other premium 2,016 2,177 (7.4 )% 5,838 6,503 (10.2 )%
Discount 2,702     2,571   5.1 % 7,646     7,290   4.9 %
Total cigarettes 34,117     33,702   1.2 % 97,437     101,041   (3.6 )%
 
Cigars:
Black & Mild 311 298 4.4 % 874 940 (7.0 )%
Other 9     4  

100

%+

 
17     14   21.4 %
Total cigars 320     302   6.0 % 891     954   (6.6 )%
           
Total smokeable products 34,437     34,004   1.3 % 98,328     101,995   (3.6 )%
                                         

Note: Cigarettes volume includes units sold as well as promotional units, but excludes units sold in Puerto Rico and U.S. Territories, to Overseas Military and by Philip Morris Duty Free Inc., none of which, individually or in aggregate, is material to the smokeable products segment.

Marlboro’s retail share for the third quarter and first nine months of 2013 was unchanged versus both prior-year periods. Later this month, PM USA will expand Marlboro Edge distribution nationally. Marlboro Edge, part of the Marlboro Black family, offers adult smokers bold, smooth flavor.

PM USA’s total retail share for the third quarter and first nine months of 2013 increased 0.2 and 0.3 share points, respectively, due to retail share gains by L&M in Discount, partially offset by share losses on other portfolio brands. PM USA’s cigarette retail share performance is summarized in Table 6.

In the machine-made large cigars category, Black & Mild’s retail share for the third quarter and first nine months of 2013 decreased 1.1 and 1.6 share points, respectively. Middleton’s retail share performance is summarized in Table 6.
 
Table 6 - Smokeable Products: Retail Share (percent)
 
Third Quarter       Nine Months Ended

September 30,
2013   2012  

Percentage

point

change
2013   2012  

Percentage

point

change
Cigarettes:        
Marlboro 43.7 % 43.7 % 43.6 % 43.6 %
Other premium 3.1 3.2 (0.1) 3.1 3.3 (0.2)
Discount 3.9     3.6     0.3 3.9     3.4     0.5
Total cigarettes 50.7 %   50.5 %   0.2 50.6 %   50.3 %   0.3
 
Cigars:
Black & Mild 29.5 % 30.6 % (1.1) 29.2 % 30.8 % (1.6)
Other 0.2     0.2     0.2     0.2    
Total cigars 29.7 %   30.8 %   (1.1) 29.4 %   31.0 %   (1.6)
                                     

Note: Retail share results for cigarettes are based on data from IRI/MSAi, a tracking service that uses a sample of stores and certain wholesale shipments to project market share and depict share trends. Retail share results for cigars are based on data from IRI InfoScan, a tracking service that uses a sample of stores to project market share and depict share trends. Both services track sales in the Food, Drug and Mass Merchandisers (including Wal-Mart), Convenience, Military, Dollar Store and Club trade classes. For other trade classes selling cigarettes, retail share is based on shipments from wholesalers to retailers (STARS). These services are not designed to capture sales through other channels, including the internet, direct mail and some illicitly tax-advantaged outlets. Retail share results for cigars are based on data for machine-made large cigars. Middleton defines machine-made large cigars as cigars, made by machine, that weigh greater than three pounds per thousand, except cigars sold at retail in packages of 20 cigars. Because the cigars service represents retail share performance only in key trade channels, it should not be considered a precise measurement of actual retail share. It is IRI’s standard practice to periodically refresh its services, which could restate retail share results that were previously released in these services.

SMOKELESS PRODUCTS

The smokeless products segment grew its adjusted OCI for the third quarter and first nine months of 2013 primarily through higher pricing and higher volume. USSTC grew Copenhagen and Skoal’s combined volume and retail share in both periods.

The smokeless products segment’s 2013 third-quarter net revenues increased 11.0% primarily due to higher volume and higher pricing, partially offset by higher promotional investments. For the first nine months, the segment’s net revenues increased 7.2% primarily due to higher volume and higher pricing, partially offset by higher promotional investments and unfavorable mix due to growth in products introduced in recent years at a lower, popular price. For the third quarter and first nine months of 2013, the smokeless products segment’s revenues net of excise taxes increased 9.8% and 6.6%, respectively.

9 of 15

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs