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Philip Morris: 3 underestimated Cataylsts

Philip Morris (PM) was separated from Altria in 2008 for the separation of the domestic tobacco business (Altria) from the international. Philip Morris operates in four major markets: Europe, Eastern Europe / Africa / Middle East (EEAM), Latin America / Canada (LAC) and Asia. The European market is shrinking, especially in areas struck by the debt crisis. EEAM and LAC (Mexico down to Argentina and Canada and up) have been relatively stagnant. However, when we go to Asia, we come to one of our catalysts: Business in Asia net between Asia grew by more than 10% last year and nearly 25% a year earlier. Operating income grew by 60% and 25% in 2011 and 2010, respectively. Growth in this area is particularly useful because the basic costs of the company’s experience of … Read entire article »

Filed under: Tobacco companies, Tobacco news

Altria Settles with IRS Problems

Altria Inc (NYSE: MO), a leading cigarette manufacturer in the world and owner of popular brands Marlboro, entered into an agreement to settle all disputes with the Internal Revenue Service (IRS). The company will pay about $ 500 million for federal and state income taxes, as well as the related estimated interest to settle the dispute with the IRS. Of the $ 500 million, Altria will pay $ 450 million by the end of the second quarter of 2012, relating to federal income tax and related interest assessed in connection with the 2000 and 2010 taxes. In June 2011 IRS concluded its consideration a consolidated federal income tax returns in Altria’s 1996 and 2003. IRS has decided to deny tax benefits enjoyed by the closed cup (a division of Altria) in respect … Read entire article »

Filed under: Tobacco companies, Tobacco news

Tobacco display law

Tobacco displays will be the thing of the past next month, when amendments to the tobacco law come into force. To ensure compliance with the smoking law enforcement officers working in district health departments under contract with the Ministry of Health, will be doing spot checks at stores after July 23. If retailers have decided to continue the sale of tobacco after this date, they will have to think about how to receive and store tobacco products and how to get tobacco products to the buyer without having to show them. Tobacco retailers can not – Have the tobacco products are visible members of the public, either inside or outside their premises. – The use of any trademark or trade name, which means that tobacco products for sale within the premises. Waikato District Health Board alcohol … Read entire article »

Filed under: Tobacco laws

Altria remains neutral

We recently reaffirmed our neutral recommendation on Altria Group Inc (MO – Analyst Report), a manufacturer and marketer of cigarettes, smokeless products, wine and financial services providers in the U.S. The company reported profit of 49 cents per share in the first quarter of fiscal 2012, which according to the consensus estimate of Sachs, but also surpassed the previous year’s result of 11.4%. Raising revenue was the result of long-term premium brand initiatives, Philip Morris USA, as well as high performance and significant increase in market share the company’s brand Marlboro. Launching new products in the segment of smokeless product also increased the top line results of the company. Altria has a strong portfolio of brands of tobacco and wine. The portfolio is enriched with popular names such as Marlboro, winston, Copenhagen, … Read entire article »

Filed under: Tobacco companies

TEXT-Fitch affirmed the ratings of Philip Morris International

Fitch Ratings has affirmed (PMI) Philip Morris International Inc in the long-term issuer default rating (IDR) and senior unsecured rating at ‘A’ and Short-term IDR at “F1”. The outlook on the long-term IDR is stable. Approval and a stable outlook reflects continuing competitive PMI, strength and ability to consistently increase profits, despite the decline in cigarette consumption in the world market of tobacco products (except for China and the U.S.). Other factors contributing to the PMI, ‘A’ IDR is its EBITDA margin of 46% of healthy work, which has risen steadily over time, and significant pre-dividend free cash flow (FCF) generation (USD9.0bn in 2011). Fitch notes that the operations of PMI, are exposed to stagnant / decline in cigarette consumption and the continuation of regulation and taxation, despite the pressure-balanced exposure to … Read entire article »

Filed under: Marlboro brand, Tobacco companies, Tobacco news

City consider a new policy for tobacco

The Finance Committee recommended that the city Dyersburg changes of tobacco policy in the hope that employees will actively pursue a healthy lifestyle. This recommendation was unanimously adopted at the meeting, the city finance committee on Wednesday, June 20. Recommendations must be approved by the full board before going into action, but the main points of policy include: * Provision of assistance programs for employees and their families who want to eliminate their use of tobacco products. * A ban on all tobacco products in vehicles and buildings. (Smoking is prohibited in city buildings, and other tobacco products are allowed). * The imposition of $ 5 surcharge to insurance plans for every person who continues to use the covered tobacco products for the period after December 31, 2012. The new policy was discussed at … Read entire article »

Filed under: Tobacco laws, Tobacco news

5 Dividend Kings in the tobacco industry

We have identified and analyzed the tobacco companies that offer high yields dividends, have a strong balance sheet and have enough free cash flow to maintain their dividend ratio. With continuous growth in unit sales and higher net income, we believe that Philip Morris International, Inc (TM) is an attractive prospect, with its shares offer an attractive dividend yield of 3.5%. Separately Lorrilard Inc (LO) s stock has also performed in the recent past, and better than the market and competitors alike. Attractive dividend yield of 4.9%, which along with the high rate of pay and a reasonable free cash flow, make it valuable to share dividends. In addition, despite Amercian Reynolds Inc. “(RAI) revenues being down trend, the company remains an attractive investment in terms of dividends (dividend yield 5.5%). He … Read entire article »

Filed under: Tobacco news, Tobacco-general info

The legal battle on flavored tobacco products, coupons and promotions

An important legal battle over the seller’s ability to sell flavored tobacco products, coupons to tobacco products, and the offer price of tobacco products is promotionally in the U.S. Federal District Court in Rhode Island. This trial has begun the fight, when Providence, Rhode Island City Council adopted two resolutions on January 5, 2012. One of the regulations prohibits the sale of virtually all flavored cigars, smokeless tobacco and pipe tobacco products in the city. Other prohibitions decree adult consumers from redeeming coupons tobacco products, as well as certain retailers is prohibited to offer promotionally priced tobacco products, such as “buy one, get one free” offers. Both of these actions had been scheduled to take effect March 1, 2012, but implementation of these laws has been postponed due to the pending … Read entire article »

Filed under: Tobacco-general info

Two new companies seek the support of the tobacco commission in Danville

Two economic development projects eligible for funding for some tobacco commission and Danville City Council will vote on whether to approve the grant at its meeting on Tuesday. Web Parts Inc, a computer data center, moved to Danville from Guatemala. It is located in a former Masonic Temple on Main Street while he looks for a permanent place, and plans to invest $ 10 million and hire 260 people within three years. Tobacco Commission offered the company a grant of $ 1 if they reach their goals, and economic office development is proposed to award the money at different stages of development achieved within three years of the agreement. A hybrid vehicle Danville Inc. plans to produce armored vehicles and has developed an agreement to establish a joint venture with Advanced Research Center … Read entire article »

Filed under: New tobacco, Tobacco news

Indiana is the first among the ten smoking states

More than 20% of Hoosiers lit cigarettes on a regular basis, which leaves a 42-seat state of the nation in terms of number of smokers in the population, a new Ball State University study shows. Smoking in India cost the state $ 2.6 million of lost productivity and $ 2.2 billion health care costs annually, the study says. “We have known for decades that smoking is counterproductive to our health and plays an important role in health care costs spiral facing workers and their employers,” said Kerry Anne McGeary, Global Health Institute Director, in a press release of the State Ball. “Smoking kills half its consumers. About one person dies every six seconds due to tobacco. These data sends a clear message to smokers that they are involved in a very dangerous … Read entire article »

Filed under: Tobacco news

Why work with Big Tobacco?

Big Tobacco is a desperate effort to oppose the introduction of plain packaging of tobacco was supported by a medley of consulting, legal and advertising, public relations and lobbying organization. Consulting groups, lawyers and lobbyists are free to choose their clients, and is still legal to sell tobacco products are adults (although many retailers knowingly violate a law banning the sale of children). But legal or not, the question remains: why, in 2012, nobody would want to work, or with the tobacco industry? When I was first involved in the fight against tobacco 40 years ago, the people, the leading tobacco companies began his career long before the dangers of smoking have been identified and published. They took the wrong decisions early, setting the industry went on a long road of … Read entire article »

Filed under: Tobacco-general info

Tobacco someday will be banned worldwide

It is inevitable that the “days organized by tobacco worldwide number” and that the sale and consumption of tobacco, which the New Zealand government has already said he will be banned by 2025 “will be prohibited in a growing number of countries as well.” It was surprising and optimistic outlook on the environment for a long time anti-tobacco lawyer Amos Hausner, head of the Israeli Council for Smoking Prevention. Hausner, son of Gideon Hausner – an end to Israel’s attorney general and prosecutor of Nazi murderer Eichmann – repeated the well-known characteristics of the Nazis, describing the sale of tobacco products as “the banality of evil.” This phrase was coined by the Jewish political philosopher Hannah Arendt in her 1963 work Eichmann in Jerusalem: A Report on the Banality of Evil. Her thesis is … Read entire article »

Filed under: Tobacco news