Philip Morris USA’s domestic cigarette shipment volume during the third quarter to the end of September, at 34.1 billion, was 1.2 percent higher than it was during the third quarter of 2012.
Marlboro volume was increased by 1.5 percent to 29.4 billion, while the volume of the company’s other premium brands was down by 7.4 percent to 2.0 billion and its discount brand volume was up by 5.1 percent to 2.7 billion.
In presenting third-quarter and nine-month figures yesterday, Altria said that PM USA’s third-quarter reported domestic cigarettes shipment volume had increased by 1.2 percent primarily due to “one extra shipping day, changes in trade inventories and retail share gains, partially offset by the industry’s rate of decline.”
“After adjusting for calendar differences and changes in trade inventories, PM USA estimates that its third-quarter 2013 domestic cigarettes shipment volume was down approximately 3 percent and that total cigarette category volume declined approximately 3.5 percent in the same period,” Altria said.
PM USA’s domestic-market retail share during the three months to the end of September, at 50.7 percent, was increased by 0.2 of a percentage point on that of the third quarter of 2012.
Marlboro’s market share was unchanged at 43.7 percent, while the share of the company’s other premium brands was down by 0.1 of a percentage point to 3.1 percent, and the share of its discount brands was up by 0.3 of a percentage point to 3.9 percent.
USSTC and PM USA’s combined domestic smokeless products shipment volume during the third quarter, at 212.8 million cans and packs, was up by 9.5 percent on that of the three months to the end of September 2012.
Shipments of Copenhagen and Skoal taken together were up by 10.5 percent to 192.0 million packs and cans, while shipments of other brands were increased by 1.5 percent to 20.8 million packs and cans.
Altria commented that for the third quarter of 2013, USSTC and PM USA’s combined reported domestic smokeless products shipment volume had increased by 9.5 percent primarily due to one extra shipping day and volume growth for Copenhagen and Skoal.
“After adjusting for an extra shipping day, trade inventory changes and other factors, USSTC and PM USA estimate that their combined domestic smokeless products shipment volume grew approximately 4 percent for the third quarter of 2013,” Altria said.
USSTC and PM USA’s retail share of the domestic smokeless products market during the three months to the end of September, at 55.1 percent, was down by 0.3 of a percentage point.
Copenhagen’s share increased by 1.3 percentage points to 29.6 percent, while Skoal’s share fell by 1.2 percentage points to 21.2 percent, and the share of the companies’ other brands fell by 0.4 of a percentage point to 4.3 percent.
Middleton’s cigar shipment volume during the first three months, at 320 million, was increased by 6.0 percent on that of the three months to the end of September 2012, as Black & Mild volume increased by 4.4 percent to 311 million and other-cigar volume rose by more than 100 percent from 4 million to 9 million.
Middleton’s retail share during the third quarter, at 29.7 percent, was down by 1.1 percentage points on that of the three months to the end of September 2012, with Black & Mild’s share down by 1.1 percentage points to 29.5 percent and the share of other brands unchanged at 0.2 percent.
Altria’s 2013 third-quarter reported diluted earnings per share (EPS), at $0.70, were increased by more than 100 percent on those of the third quarter of 2012, while its adjusted diluted EPS, which excludes the impact of special items, increased by 12.1 percent to $0.65.
Altria’s third-quarter net revenues increased by 5 percent to $6.6 billion primarily due to higher net revenues from the smokeable and smokeless products segments, and higher gains on asset sales in the financial services business. Altria’s revenues net of excise taxes increased 6.6 percent to $4.8 billion.
“During both the quarter and the first nine months, our strategies and diverse business model continued to produce strong results,” said Marty Barrington, chairman and CEO of Altria.
“Our businesses are on track against their full-year plans, and Altria remains focused on creating long-term value for shareholders.
“In addition to producing strong results in our core businesses, we’re developing innovative tobacco products for adult tobacco consumers. We’re pleased with Nu Mark’s lead market launch in Indiana of its MarkTen e-vapor products. Further, Nu Mark plans to expand distribution of MarkTen to Arizona in December.”
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