CHICAGO - Rising US sales of Marlboro cigarettes helped food and tobacco conglomerate Altria Group post an 18-percent surge in first-quarter profits Wednesday.
Altria said it earned 2.6 billion dollars or 1.25 dollars a share, up from 2.19 billion dollars (1.07 dollars) in the same three-month period a year earlier.
"Solid overall results for the first quarter were in line with our expectations," Altria Group chief executive Louis Camilleri said.
The US branch of Philip Morris, which makes the Marlboro cigarettes, posted a seven percent gain in operating income driven by an increase in retail share for the Marlboro brand to 39.8 percent from 39.0 percent in the United States.
Philip Morris International Inc. recorded a 13 percent increase in operating income, helped by a one-time sale to a new distributor in Italy and a 126 million dollar benefit from favourable currency rates.
The international arm of the Marlboro maker did well despite "another difficult quarter for the entire cigarette industry in Western Europe", Camilleri said.
Another Altria unit, Kraft Foods Inc., saw its revenue improve 6.4 percent to 8.1 billion dollars.
Late Tuesday, the maker of popular brands including Jell-O, Maxwell House coffee and Oreo biscuits said its net income rose 27 percent but cut its full-year earnings view.
"In our food business, Kraft is making sound progress on its 'Sustainable Growth Plan'," Camilleri said.
"While commodity costs continue to affect earnings, we are pleased with Kraft's revenue momentum and strong share growth in numerous key categories and markets."
Looking ahead, Altria said it expects to earn 4.95-5.05 dollars a share in 2005, versus Wall Street's expectation of 5.15 dollars a share.
In late morning trade in New York, shares in Altria were up 1.14 dollars or 1.78 percent at 65.26 dollars. Kraft shares stood at 31.59 dollars, up seven cents or 0.2 percent.
04/20/2005 15:23 GMT