Philip Morris USA’s domestic cigarette shipment volume during the third quarter to the end of September, at 33.165 billion, was 2.8 percent lower than it was during the third quarter of 2013, 34.117 billion.
Marlboro volume was down by 2.8 percent to 28.581 billion, while the volume of the company’s other premium brands was down by 8.3 percent to 1.848 billion and its discount brand volume was up by 1.3 percent to 2.736 billion.
In presenting third-quarter and nine-month figures yesterday, Altria said that the fall in PM USA’s third-quarter reported domestic cigarettes shipment volume had been caused by an industry-wide decline, partially offset by retail share gains.
‘For the first nine months of 2014, PM USA’s reported domestic cigarettes shipment volume decreased 3.5 percent primarily due to the same factors, Altria reported. ‘When adjusted for trade inventory changes and other factors, PM USA estimates that its third quarter and first-nine months domestic cigarettes shipment volume decreased approximately 3.0 percent and 3.5 percent, respectively, and that total industry cigarette volumes declined approximately 3.5 percent in the third quarter and 4.0 percent for the first nine months of 2014.’
PM USA’s domestic-market retail share during the three months to the end of September, at 50.9 per cent, was increased by 0.2 of a percentage point on that of the third quarter of 2013.
Marlboro’s market share increased by 0.1 of a percentage point to 43.8 percent, while the share of the company’s other premium brands was down by 0.1 of a percentage point to 2.9 percent, and the share of its discount brands was up by 0.2 of a percentage point to 4.2 percent.
USSTC and PM USA’s combined domestic smokeless products shipment volume during the third quarter, at 203.0 million cans and packs, was down by 4.6 percent on that of the three months to the end of September 2013.
Shipments of Copenhagen and Skoal taken together were down by 4.1 percent to 184.1 million packs and cans, while shipments of other brands were down by 9.1 percent to 18.9 million packs and cans.
Altria commented that the decrease in volumes during the third quarter was caused by its having one less shipping week than did the third quarter of 2013.
‘After adjusting for calendar differences and trade inventory changes, USSTC and PM USA estimate that their combined domestic smokeless products shipment volume grew approximately 2.5 percent in the third quarter and 3.0 percent in the first nine months of 2014,’ Altria said. ‘USSTC and PM USA estimate that the smokeless products category volume grew approximately 3.0 percent over the last 12 months, reflecting slower industry volume growth in the past two quarters.’
USSTC and PM USA’s retail share of the domestic smokeless products market during the three months to the end of September, at 55.4 percent, was increased by 0.3 of a percentage point.
The share of Copenhagen and Skoal taken together increased by 0.4 of a percentage point to 51.3 percent, while the share of the companies’ other brands fell by 0.1 of a percentage point to 4.1 percent.
Middleton’s cigar shipment volume during the first three months, at 347 million, was increased by 8.4 percent on that of the three months to the end of September 2013, as Black & Mild volume increased by 9.6 percent to 341 million and other-cigar volume fell by 33.3 percent from nine million to six million.
Middleton’s retail share during the third quarter, at 29.7 per cent, was increased by 0.3 of a percentage point on that of the three months to the end of September 2013, with Black & Mild’s share unchanged at 29.2 percent and the share of other brands increased by 0.3 of a percentage point to 0.5 per cent.
Altria’s 2013 third-quarter reported diluted earnings per share (EPS) were up by 1.4 percent to $0.71 on those of the third quarter of 2013, while its adjusted diluted EPS, which excludes the impact of special items, increased by 6.2 percent to $0.69.
“Our business results are on track,” said Marty Barrington, Altria’s chairman and CEO. “We grew adjusted diluted EPS 6.2 percent in the third quarter behind strong income performance by our smokeable products segment, our companies’ leading premium brands and the strength of our diverse business model.
“Nu Mark continued its national expansion of MarkTen and continues to develop a robust product pipeline.”