Altria Presents at the Consumer Analyst Group of New York Conference;
Reaffirms 2014 EPS Guidance
RICHMOND, Va. -- February 19, 2014
Altria Group, Inc. (Altria) (NYSE:MO) is participating in the Consumer Analyst
Group of New York Conference in Boca Raton, Florida today. Marty Barrington,
Altria's Chairman and Chief Executive Officer, and other members of the Altria
management team will highlight the strengths of Altria's diverse business
model and discuss Altria's strategies to create long-term value for
The presentation is being webcast live at altria.com in a listen-only mode,
beginning at approximately 9:15 a.m., Eastern Time. A copy of the business
presentation and remarks, and a replay of the audio webcast of the remarks,
will be available at altria.com.
2014 Full-Year EPS Guidance
Altria reaffirms its 2014 full-year guidance for reported diluted earnings per
share (EPS) in a range of $2.51 to $2.58. The forecast reflects estimated
SABMiller plc (SABMiller) special items. Altria also reaffirms its 2014
full-year guidance for adjusted diluted EPS, which excludes the special items
shown in the table below, in a range of $2.52 to $2.59, representing a growth
rate of 6% to 9% from an adjusted diluted EPS base of $2.38 in 2013.
The factors described in the Forward-Looking and Cautionary Statements section
of this release represent continuing risks to this forecast. Reconciliations
of full-year reported to adjusted diluted EPS are shown in the table below.
Altria's Full-Year Earnings Per Share Guidance
2014 Guidance 2013 Change
Reported diluted EPS $ 2.51 to $ $ 2.26 11%to14%
NPM adjustment items^1 - (0.21 )
Tobacco and health - 0.01
SABMiller special items 0.01 0.01
Loss on early - 0.34
extinguishment of debt
Tax items - (0.03 )
Adjusted diluted EPS $ 2.52 to $ $ 2.38 6%to9%
^1 Reflects the impact of Philip Morris USA Inc.'s settlement with certain
states of the non-participating manufacturer (NPM) adjustment disputes for
2003-2012 (NPM Adjustment Settlement) and the diligent enforcement rulings of
the arbitration panel presiding over the NPM adjustment dispute for 2003 (NPM
Arbitration Panel Decision).
Altria directly or indirectly owns 100% of each of Philip Morris USA Inc. (PM
USA), U.S. Smokeless Tobacco Company LLC (USSTC), John Middleton Co.
(Middleton), Nu Mark LLC (Nu Mark), Ste. Michelle Wine Estates Ltd (Ste.
Michelle) and Philip Morris Capital Corporation (PMCC). Altria holds a
continuing economic and voting interest in SABMiller plc.
The brand portfolios of Altria’s tobacco operating companies include
Marlboro^®, Black & Mild^®, Copenhagen^®, Skoal^® and MarkTen^™. Ste. Michelle
produces and markets premium wines sold under various labels, including
Chateau Ste. Michelle^®, Columbia Crest^®, 14 Hands^® and Stag’s Leap Wine
Cellars^®, and it imports and markets Antinori^®, Champagne Nicolas
Feuillatte^™ and Villa Maria Estate^™ products in the United States.
Trademarks and service marks related to Altria referenced in this release are
the property of Altria or its subsidiaries or are used with permission. More
information about Altria is available at altria.com.
Forward-Looking and Cautionary Statements
This press release and today's remarks contain 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.
Important factors that may cause actual results and outcomes to differ
materially from those contained in the projections and forward-looking
statements included in this press release and today's remarks are described in
Altria's publicly filed reports, including in its Annual Report on Form 10-K
for the year ended December 31, 2012 and its Quarterly Report on Form 10-Q for
the period ended September 30, 2013.
These factors include the following: Altria's tobacco businesses (including PM
USA, USSTC, Middleton and Nu Mark) being subject to significant competition;
changes in adult tobacco consumer preferences and demand for their products;
fluctuations in raw material availability, quality and price; reliance on key
facilities and suppliers; reliance on critical information systems, many of
which are managed by third-party service providers; fluctuations in levels of
customer inventories; the effects of global, national and local economic and
market conditions; changes to income tax laws; federal, state and local
legislative activity, including actual and potential federal and state excise
tax increases; increasing marketing and regulatory restrictions; the effects
of price increases related to excise tax increases and concluded tobacco
litigation settlements on trade inventories, consumption rates and consumer
preferences within price segments; health concerns relating to the use of
tobacco products and exposure to environmental tobacco smoke; privately
imposed smoking restrictions; and, from time to time, governmental
Furthermore, the results of Altria’s tobacco businesses are dependent upon
their continued ability to promote brand equity successfully; to anticipate
and respond to new and evolving adult consumer preferences; to develop,
manufacture, market and distribute products that appeal to adult tobacco
consumers (including, where appropriate, through arrangements with, or
investments in, third parties); to improve productivity; and to protect or
enhance margins through cost savings and price increases.
Altria and its tobacco businesses are also subject to federal, state and local
government regulation, including broad-based regulation of PM USA and USSTC by
the U.S. Food and Drug Administration. Altria and its subsidiaries continue to
be subject to litigation, including risks associated with adverse jury and
judicial determinations, courts reaching conclusions at variance with the
companies' understanding of applicable law, bonding requirements in the
limited number of jurisdictions that do not limit the dollar amount of appeal
bonds and certain challenges to bond cap statutes.
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 except as required by applicable law. All subsequent written and oral
forward-looking statements attributable to Altria or any person acting on its
behalf are expressly qualified in their entirety by the cautionary statements
Altria Client Services
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