Replies to post #1338 on Altria Group Inc (MO)

[EZ2]

liberal economic terrorist senators at work:

Senators Ask FTC to Probe Camel Ads
Friday May 4, 6:26 pm ET
By Jocelyn Noveck, AP National Writer
5 Democratic Senators Ask FTC to Probe 'Camel No. 9' Ad Campaign, Saying It Targets Teen Girls

NEW YORK (AP) -- Five U.S. senators asked the Federal Trade Commission on Friday to investigate what they say are R.J. Reynolds Tobacco Co.'s attempts to appeal to teenage girls with ads for its sleekly packaged Camel No. 9 cigarettes.
R.J. Reynolds launched the brand in February. It says the cigarettes are aimed at adult female smokers, a market segment where Camel has performed poorly.

But anti-smoking groups and others have argued that the product -- from its name, which recalls an upscale perfume, to the packaging to the ads -- appears designed to lure teens or young women. The cigarettes come in black boxes with a border of teal or fuchsia. They're advertised in women's magazines under the slogan "Light and Luscious," on textured paper adorned with images of red roses and lace.

"Camel No. 9 cigarettes are being advertised to appeal to teenage girls' desire to be 'chic' and 'cosmopolitan' ... Teenage girls are especially vulnerable to this kind of advertising pitch," said Friday's letter from the five Democrats to FTC Chairman Deborah Platt Majoras.

"We believe it is time for the FTC to step in to protect our nation's teenagers from cigarettes, a product that kills one-third of its users."

The letter was e-mailed to The Associated Press by the office of Sen. Frank Lautenberg of New Jersey, who initiated it. It was also signed by Sens. Tom Harkin of Iowa, Sherrod Brown of Ohio, Ted Kennedy of Massachusetts and Illinois' Dick Durbin, according to Lautenberg's office.

The debate over the Camel campaign comes amid a renewed push for federal regulation of tobacco. A bipartisan group of lawmakers has reintroduced legislation that would give the Food and Drug Administration the authority over tobacco products that it has over many other consumer products.

Matthew Myers, president of the Campaign for Tobacco-Free Kids, said such legislation is needed to stop companies like R.J. Reynolds from marketing to young people.

"This Camel campaign is one of the most egregious, blatant attempts to make cigarette smoking sexy, cool and popular among teenage girls that we've seen in years," Myers said.

A spokesman for R.J. Reynolds, a unit of Reynolds American Inc., could not be reached on Friday evening as their offices were closed. Last week, spokesman David Howard told The AP: "We're trying to connect with women adult smokers. That is the only audience we're interested in connecting with."

[EZ2]

OT: RAI ~~ cha-ching !!!!!!!

Press Release Source: Reynolds American Inc.

Reynolds American Announces Results of 2007 Shareholders' Meeting; Board Declares Quarterly Cash Dividend
Friday May 11, 1:55 pm ET


WINSTON-SALEM, N.C., May 11 /PRNewswire-FirstCall/ -- At the company's annual meeting today, shareholders of Reynolds American Inc. (NYSE: RAI - News) re- elected four directors; ratified the appointment of KPMG LLP as independent auditors for RAI's 2007 fiscal year; and approved an increase in the number of authorized shares of Reynolds American common stock. At a meeting later in the day, the company's board declared a quarterly dividend of $0.75 per share.
Re-elected today as Class III directors (with terms that expire in 2010) were: Marty Feinstein, Neil Withington and Board Chairman Susan Ivey. Lead Director Jack Chain, who plans to retire from the board next year, was elected as a Class I director (with a term that expires in 2008). The RAI board of directors has 10 members who are divided into three classes, serving staggered terms.

During the annual meeting, shareholders approved an amendment to Reynolds American's Articles of Incorporation that increases the number of authorized shares of RAI common stock from 400 million to 800 million. The company's two-for-one stock split in August 2006 doubled the number of outstanding shares, which reduced the number of common shares available for issuance. Today's action restores the pre-split ratio of shares available for issuance compared with the total number of authorized shares.

At a board meeting following the annual shareholders' meeting, the RAI board declared a quarterly cash dividend on the company's common stock of $0.75 per share ($3 per share annualized). The dividend will be payable on July 2, 2007, to shareholders of record on June 11, 2007. This is the 12th consecutive quarterly cash dividend that Reynolds American has declared since it became a publicly traded company on July 30, 2004.

ABOUT US

Reynolds American Inc. (NYSE: RAI - News) is the parent company of R.J. Reynolds Tobacco Company; Conwood Company, LLC; Santa Fe Natural Tobacco Company, Inc; and R.J. Reynolds Global Products, Inc.


-- R.J. Reynolds Tobacco Company, the second-largest U.S. tobacco company,
manufactures about one of every three cigarettes sold in the country.
The company's brands include six of the 10 best-selling U.S. brands:
Camel, Kool, Pall Mall, Winston, Salem and Doral.

-- Conwood Company, LLC is the nation's second-largest manufacturer of
smokeless tobacco products. Its leading brands are Kodiak, Grizzly and
Levi Garrett. Conwood also sells and distributes a variety of tobacco
products manufactured by Lane, Limited, including Winchester and
Captain Black little cigars, and Bugler roll-your-own tobacco.

-- Santa Fe Natural Tobacco Company, Inc. manufactures Natural American
Spirit cigarettes and other additive-free tobacco products.

-- R.J. Reynolds Global Products, Inc. manufactures, sells and distributes
American-blend cigarettes and other tobacco products to a variety of
customers worldwide.

Copies of RAI's news releases, annual reports, SEC filings and other financial materials are available at www.ReynoldsAmerican.com.




--------------------------------------------------------------------------------
Source: Reynolds American Inc.

[EZ2]

Altria (MO) "buy/price" raised:

http://www.newratings.com/analyst_news/article_1534486.html

Smile !!

[EZ2]

MO ~~~ Saudi to sue tobacco firms
for more than $2.7 bln

Sat May 19, 2007 3:12 AM ET

RIYADH, May 19 (Reuters) - Saudi Arabia will seek more than $2.7 billion in damages from international tobacco companies in a lawsuit due to go on trial in the capital Riyadh on Sept. 11 this year, the kingdom's health ministry said on Saturday.

In November, the ministry threatened to sue international tobacco companies unless they paid the government and patients the full cost of treatment for tobacco-related illnesses.

This is the first time it has put a value on the claim.

The suit will require companies to pay a lump sum of 10 billion riyals ($2.67 billion) plus 500 million riyals a year for the treatment of tobacco-related illnesses, the ministry said in a statement on its Web site. It did not say what period the compensation would cover.

The ministry did not name any companies.

Philip Morris <MO.N>, British American Tobacco Plc <BATS.L> and Altadis <ALT.MC> are among the foreign firms that sell tobacco products in Saudi Arabia.

($1=3.750 riyals)

[EZ2]

HUGE WIN !!!! ~~~ Pa. Court Rules Against Smoking Ban

Wednesday May 23, 1:51 pm ET
By Jennifer C. Yates, Associated Press Writer

Pennsylvania Appeals Court Rules Against Allegheny County Smoking Ban

PITTSBURGH (AP) -- A state appeals court ruled that Allegheny County doesn't have the authority to ban smoking in bars, restaurants and other indoor workplaces because state law denies most local governments the right to impose stricter regulations.
The Commonwealth Court said Tuesday that the state's 1988 Clean Indoor Air Act pre-empts and supersedes Allegheny County's smoking ban. The act appears to say that only Philadelphia can have more restrictive measures than the state.

Two restaurants, backed by money from tobacco company Reynolds American Inc., had challenged Allegheny County's smoking ban, which took effect Jan. 2 for indoor workplaces.

A county judge had delayed the implementation of the law in bars and restaurants, and Commonwealth Court on Tuesday said a permanent injunction should be issued to stop the entire ban from ever taking effect.

"It's a setback for public health in Allegheny County. This legislation went a long way toward protecting the health of the citizens in Allegheny County," Council President Rich Fitzgerald said. "But secondly, it was a knock against home rule."

Judge Renee Cohn Jubelirer, who wrote the Commonwealth Court opinion, agreed with Smithfield Cafe and Mitchell's Restaurant that the General Assembly specified that the Clean Indoor Air Act pre-empted local legislation.

John Petrolias, owner of the Smithfield Cafe, said he was very pleased with the ruling.

"We've been saying that all along," Petrolias said.

Kevin Evanto, a spokesman for County Executive Dan Onorato, said Onorato has no plans to appeal the decision. Fitzgerald said the council would review the ruling before making a decision about an appeal, which must be filed within 30 days.

"The one thing that the ruling does is reinforce what the county executive has said throughout this debate, that this is truly a state issue," Evanto said. "He continues to hope that the General Assembly will pass a statewide ban."

Several state lawmakers have written legislation to ban smoking in certain places statewide. None of the legislation, though, has passed either the House or Senate.

Scranton and Philadelphia are the only other cities in Pennsylvania with smoking bans; Erie officials approved a ban but it has not been enforced.

Cindy Thomas, executive director of Tobacco Free Allegheny, a nonprofit group funded by the county's health department, said Philadelphia wouldn't be affected by the ruling because its clean air ordinances are allowed to be more restrictive than the state's.

Thomas said she also would like the Legislature to pass a statewide ban. In the meantime, she hopes businesses that have been smoke-free since the ordinance was passed will stay that way regardless of the ruling.

"I'm a little at a loss of what to say to people to get them to understand that this action can help protect people and their health," Thomas said. "The science is very clear."

[EZ2]

MO ~~ watch close P.S. !!

Business & Insurance Update
Spinoff Speculation at Altria: What's Next?
By Debra Borchardt
Staff Reporter
5/25/2007 12:08 PM EDT
URL: http://www.thestreet.com/newsanalysis/businessinsurance/10358909.html

Speculation is growing that when the board of Altria (MO) meets next week, it will discuss the possibility of spinning off at least one of its remaining parts.

Already this year, the company unloaded Kraft Foods (KFT) in order to put its focus on tobacco and to appeal to investors who prefer a corporation with a singular purpose rather than a conglomeration of businesses.

Certainly Altria has options, and the most popular suggestion is that the next component to go it alone could be the massive holding that is Philip Morris International. Chief Financial Officer Dinyar Devitre even stated at Altria's recent annual meeting that the unit was ready to stand on its own if the board so desired.

Of course, doing that would mean a very different -- and significantly smaller -- Altria than the one that exists today. In 2006, the company was still recording the results from Kraft, which allowed total revenue to grow 3.6% from the prior year to $101.4 billion. Were Kraft excluded, sales would have been roughly $67 billion.

In other words, two-thirds of the overall top line came from tobacco, and Philip Morris International was responsible for the bulk. Last year, the international division recorded net revenue from tobacco of $48.3 billion and operating income, before corporate expenses and amortization of intangibles, totaling $8.5 billion.

By comparison, North American tobacco accounted for revenue of $18.5 billion and adjusted operating income of $4.8 billion.

Cigarette shipment volume for the international business rose 3.4% from 2005 owing to strength in Indonesia and, to a lesser extent, France, Russia and Ukraine. Contributing to the increase was the purchase of Lakson, a Pakistan-based cigarette maker with an estimated annual volume of 30 million units.

The only weak spots were Germany, Spain and Japan, where tobacco consumption and volumes were down.

However, considering the work that went into the Kraft spinoff, Altria might choose to take a smaller step as opposed to another giant leap.

Usually, companies send parts out on their own when they want to streamline operations or divest underperforming businesses. With that in mind, Altria could be better off mulling an alternative, namely selling its stake in what used to be Miller Brewing, now part of SABMiller.

Altria has a 28.6% economic and voting interest in SABMiller, the world's second-largest brewer, through a relationship that stretches back nearly 40 years. The company then known as Philip Morris bought 53% of Miller in 1969 for $130 million. The next year, it acquired the remaining 47% for $97 million.

Five years ago, Altria sold the bulk of the company for $3.6 billion. That's a pretty decent return on an investment. And the current market value of the remaining piece is roughly $9.6 billion.

Is now the time for cutting ties with the rest? Altria notes in its annual report that its recent performance trails that of pure-play tobacco competitors. Last year, its stock returned just under 20%. Respectable, but Reynolds American (RAI) ran up 44%, and British American Tobacco (BTI) climbed 30%.

Meanwhile, beer sales are suffering as Americans appear to be turning more to wine and hard liquors when they want an alcoholic beverage. According to A.C. Nielsen, the dollar amount spent on beer in 2006 was up only 2%, compared with a 4.4% increase for spirits and 8.8% growth for wine.

Although SABMiller saw a 15% advance in last year's profits and is boosting the dividend, input costs for aluminum, glass and energy are rising, as well.

Paul Kleinschmidt, an analyst at Argus Research, says Altria wants to focus on its tobacco operation in the U.S., where the regulatory landscape has stabilized. The international market, he says, is more muddled with tax issues and antismoking laws, even though growth prospects make sense to stay there.

While Altria could eventually dispense with both the international unit and the holding in SABMiller, the company seems to be implying it's more interested in carving away Philip Morris International for now, Kleinschmidt says.

"It's not unlikely they could spin off these businesses, it's the order in which they'll do it," he says. "They'll get more from PMI now, and they don't have the resources and energy for two spinoffs."

However, the options don't even end there, as it could also see value in divesting Philip Morris Capital Corp., a unit that leases assets including aircraft and power-generating plants.

These days, the company isn't making new investments and is merely managing its existing portfolio. The net rental receivables dropped from $8.27 billion in 2005 to $7.52 billion in 2006, and Altria increased its allowance for losses.

"PMCC is not in sync with the company," says Kleinschmidt. "They tend to sweep it under the rug."

Regardless of its final decision, one thing Altria won't do forever is stand still.

[EZ2]

I do NOT see MO reducing dividend.....we'll see.
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l@@king for dividends ?

http://bespokeinvest.typepad.com/