Altria’s Earnings Rely On Better Pricing For Smokes

 

Altria is scheduled to announce its fourth quarter earnings on January 25. The U.S.-based tobacco company posted strong results in the third quarter with 2% y-o-y growth in both revenues and gross margin. For the nine months ended September 2012, revenues and gross margin were up 4% and 9% y-o-y respectively. Revenue growth was led (in absolute terms) by smokeable products (up 2.1% y-o-y), followed by smokeless products (up 2.6% y-o-y). Revenue growth in both the segments was driven by higher list prices and higher reported shipment volume, partially offset by higher promotional investments and higher volume growth in discount brands. Effective cost management due to the ongoing cost reduction program added to the effect of higher list prices to push operating margins higher for the company.

Altria faces a declining market for cigarettes in the U.S. and is increasingly relying on its Marlboro brand that holds more than 40% of the market and pricing to drive revenue growth. The smokeless products segment on the other hand is performing quite well, and we believe that this division has the potential to drive overall growth in medium-long term.

Just the Facts on Smoking

We applaud Judge Gladys Kessler’s ruling ordering tobacco companies to publish corrective statements that say they lied to us about the dangers of smoking and that clearly state the deadly health effects of smoking. These statements are not “forced public confessions,” just the indisputable truth.

The statements will also correct public misconceptions about the health benefits of “low tar” and “light” cigarettes. Smoking kills, on average, 1,200 Americans a day. We think that it is shameful that Big Tobacco has been concealing the dangers of smoking for decades.

In the United States, smoking kills more people than AIDS, alcohol, car accidents, murders, suicide, drugs and fires combined, according to The New York Times. It’s time the American public heard that sobering fact from the companies that have profited from the loss of life. It’s not easy to tell the truth when you’re Big Tobacco, but the time to do so is now.

Kim Jong Un loves comic books and foreign cigarettes

Kim Jong Un, top leader of the Democratic People’s Republic of Korea (DPRK), has largely been a mystery to the whole world. His personal life was rarely reported in the country’s official media, but S.Korean media has dished out some fun facts about him as a person.
For one thing, Kim Jong Un seems to be a devoted reader of Japanese comics, according to a former classmate of his.
“He liked comics especially Japanese manga.”
Classmates said he is also an avid skier and a computer-game player, and fanatical about basketball — particularly the fortunes of the Chicago Bulls.
Kim is also crazy about James Bond, Jean-Claude Van Damme and Jackie Chan movies.
Also, pictures released by KCNA show Kim Jong Un enjoying a cigarette moments after the launch of its rocket Wednesday morning, reports .
It’s not the first time Kim has been pictured with a cigarette by KCNA, with footage of him visiting a gymnasium earlier this year sparking controversy for showing him using gym equipment with cigarette in hand.
Kenji Fujimoto, Kim Jong Il’s former sushi chef, was reported to have said that Kim Jong Un began to smoke cigarettes and drink liquor when he was around 15.
According to reports, Fujimoto said Kim Jong Un was “one who loves to smoke,” adding that he likes to smoke Yves Saint Laurent, among others.

Just what is third-hand smoke?

Smoking is bad for your health. And second-hand smoke - the cloud of cigarette exhaust that we inhale when those around us are smoking - is nearly as dangerous.

But what about third-hand smoke? Chances are you've never heard of this concept before, but it "could have some dangerous health consequences," said Greta Roberts Broneil, assistant director of health for the town of Stratford.

Third-hand smoke refers to the chemicals in smoke that stick around long after a cigarette is extinguished. They linger on clothes, in hair, on skin, in carpets and blankets, and on walls, toys and any number of surfaces.

In an effort to inform the public about this little-known concept, Stratford is launching a third-hand-smoke awareness campaign after the start of the new year, according to CTPost.com. The program aims to help people, particularly children, limit their exposure to these chemicals, which can include nicotine, arsenic and lead.

It's not exactly clear how dangerous third-hand smoke is, but health experts said it makes sense that smoke residue can be unhealthy if inhaled or ingested. Broneil said children are particularly vulnerable to third-hand smoke as they're more apt to crawl or roll around on the floor and put toys and other items in their mouths

The American Cancer Society has said that no cancer risks from third-hand smoke have been measured, but the health effects of these residual chemicals are "an active area of research."