Bloomberg "Anywhere" Remote Login Bloomberg "Terminal" Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

A Heavier Toll On Tobacco Road


In Business This Week

A HEAVIER TOLL ON TOBACCO ROAD

It doesn't make smoking any better for you, but cigarette prices have plunged in the past six months. And the price wars are killing tobacco company earnings. Domestic profits for the third quarter, due out on Oct. 19, will be awful, says Gary Black, an analyst at Sanford C. Bernstein. Income will be down 80% vs. a year ago at American Brands, 68% at R.J. Reynolds Tobacco, and 54% at Philip Morris, he figures. How to stanch the bleeding? Black thinks Reynolds might raise prices in November by 5 a pack, and that Philip Morris and smaller manufacturers will follow suit.EDITED BY KEITH H. HAMMONDS


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus