Philip Morris USA earnings rose almost 10 per cent in the first quarter after the company raised list prices, but it sold fewer cigarettes due in part to the timing of Marlboro product launches.

According to PM USA parent Altria Group cigarette operating income rose 9.5 per cent to USD 1.35 billion (EUR 934 million) in the three months ending 31 March on sales that dipped 1.9 per cent to USD 5 billion. Profit rose “primarily to higher list prices and lower asset impairment, exit and implementation costs,” Altria said in a release.
Marlboro sales in units declined 5.7 per cent to 27.9 billion units. Altria said introduction of Marlboro Special Blend products in January, 2010, boosted sales in last year’s first quarter. The February, 2011, introduction of two more Special Blend products came too late in the business quarter to provide much of a sales punch, Altria said.
Sales of smokeless products made by PM and US Smokeless Tobacco Company dipped 0.6 per cent to USD 353 million after excise taxes. Operating income rose 8.4 per cent to USD 194 million. (ci)