Replies to post #1388 on Altria Group Inc (MO)

[EZ2]

So true ~~~ and our accounts love it !!!

Seeking Alpha
Will The FDA End Up Endorsing A Safer Cigarette?
Friday June 22, 7:01 am ET

http://valueplays.blogspot.com/2007/06/will-fda-end-up-endorsing-safer.html

Todd Sullivan submits: Sometimes you read something that just strikes you as so ironic. Under bills now winding through Washington, the FDA would be empowered to approve cigarette makers’ marketing claims if a tobacco product is scientifically proven to “significantly reduce harm” to smokers, and the product’s availability would benefit the “health of the population as a whole,” the WSJ reports. That designation could be provide “a potentially lucrative opportunity” for the company.
Philip Morris (NYSE: MO - News) has a bunch of test products in the works, including one with a carbon filter, and another with a battery-powered device that heats the tobacco. But it’s unclear whether any of them would qualify for the potential FDA-approved marketing claims. And the public health community is skeptical. “We must be extremely wary of claims made by manufacturers,” the dean of the University of Michigan School of Public Health told the WSJ.

Altria has supported this legislation from the beginning while its competitors like Reynolds (NYSE: RAI - News) have fought it. By embracing it's inevitable passage and participating in it, Altria has leap frogged over it's competition in developing products that will take advantage of the new rules.

Here is the irony. While "lights" suits wind their way through the courts across the nation, the FDA will undoubtedly end up endorsing a cigarette that is "lighter" or "safer". You just cannot make this stuff up.

The government should just back off tobacco companies, every time they try to nail them, they only end up making their business stronger.

[EZ2]

Court to Hear Internet-Cigarette Fight
Monday June 25, 12:35 pm ET
Court Will Hear Dispute Over State Law Regulating Internet Sales of Cigarettes

WASHINGTON (AP) -- The Supreme Court on Monday agreed to consider reinstating Maine's law aimed at regulating Internet sales of cigarettes to keep them out of the hands of minors.
Trade associations for delivery companies successfully argued in an appeals court that a federal statute supporting the free flow of interstate commerce pre-empted the Maine law.

The Maine attorney general, who asked the Supeme Court to hear the case, argues that states should be allowed to exercise their historic public health police powers to stop delivery of tobacco to children.

To comply with the state law, carriers must specially inspect every package containing tobacco and destined for delivery in Maine.

The 1st U.S. Circuit Court of Appeals found that carriers had to change their uniform package-processing procedures to comply with Maine's law. That, said the appeals court, conflicts with the requirements of the Federal Aviation Administration Authorization Act. It says states may not enact a law related to a service of any shipper.

The 2003 state law makes it illegal to knowingly deliver tobacco products to a Maine consumer if the product was purchased from an unlicensed retailer. Retailers must use only commercial carriers who ensure that the buyer is at least 18.

The appeals court decision in the trade association's favor "leaves delivery sales of tobacco to children unregulated by any government, a result nowhere suggested by Congress or supported by common sense," the Maine attorney general's office said in asking the Supreme Court to take the case.

The state law was prompted by an increase in Internet tobacco sales carried out by direct delivery to consumers through the mail or by commercial carriers. The phenomenon has complicated Maine's efforts to regulate the sale of tobacco to minors and also caused it to lose tax revenue because of tax-free sales by unlicensed companies.

The Bush administration sided with the trade associations, urging the justices to reject the appeal.

The case is Rowe v. New Hampshire Motor Transport, 06-457.

[EZ2]

Form 8-K for ALTRIA GROUP, INC.


--------------------------------------------------------------------------------

26-Jun-2007

Costs Associated with Exit or Disposal Activities



Item 2.05. Costs Associated with Exit or Disposal Activities.
On June 26, 2007, Altria Group, Inc. announced plans by its tobacco subsidiaries to optimize worldwide cigarette production by moving U.S.-based cigarette production for non-U.S. markets to Philip Morris International (PMI) facilities in Europe. Due to declining U.S. cigarette volume, as well as PMI's decision to re-source its production, Philip Morris USA (PM USA) will close its Cabarrus, NC manufacturing facility and consolidate manufacturing for the U.S. market at its Richmond, VA manufacturing center.
The program is expected to generate pre-tax cost savings beginning in 2008, with total estimated annual cost savings of approximately $335 million by 2011, of which $179 million will be realized by PMI and $156 million will be realized by PM USA. Cumulative total expenses of the program, all of which will be taken by PM USA, are estimated at approximately $670 million, comprising accelerated depreciation of $143 million, employee separation cost of $353 million and other charges, primarily related to the relocation of employees and equipment, of $174 million. Approximately $440 million, or 66% of the total charges, will result in cash expenditures. In addition, the program will entail capital expenditures of approximately $230 million at PM USA and $50 million at PMI. Altria Group, Inc. expects PM USA to record an initial charge for the program of approximately $325 million, or $0.10 per Altria share, in the second quarter of 2007, related primarily to employee separation programs.
Altria's press release regarding the program is attached hereto as Exhibit 99.1 and incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Altria Group, Inc. Press Release dated June 26, 2007

[EZ2]

.<font color=green> MO on MO ~~~~~

Seeking Alpha
Altria Group Moves Toward PMI Spin
Wednesday June 27, 5:00 am ET

Todd Sullivan submits: It appear that Altria Group (NYSE: MO - News) is taking another step to its eventual spin of Phillip Morris International [PMI].
Yesterday they announced a consolidation of operations that will result in a North Carolina manufacturing plant being closed by 2010. The Cabarrus, North Carolina plant, which employs 2,500 workers, will be closed and manufacturing will be consolidated at its Richmond, Virginia plant. The production for PMI that currently is done in Cabarrus will be moved to Europe, eliminating shipping/freight costs for PMI. Most hourly workers in Carrabus will be offered work at the Richmond facility.

The company expects total savings by 2011 to be $335 million per year. Of the savings, $179 million will go to Philip Morris International and $156 million will go to Philip Morris USA. 2007 charges will be $325 million, or $0.10 off of EPS, mostly taken in Q2 and $50 million will come later in 2007.

This is another step for Altria's Phillip Morris USA [PMUSA] to separate from the International operations [PMI]. With this move, PMI will now have its own production facilities and be wholly functionally independent from PMUSA. It is starting to look like we may get an announcement of the intentions here at the next board meeting (along with a nice fat dividend increase) in Q3.

[EZ2]

P.S. ~~ you would think Larry could control this better !! :-)
========================================================================================

Louisville Smoking Ban Cleared by Judge
Friday June 29, 11:20 am ET
By Bruce Schreiner, Associated Press Writer
Kentucky Judge Clears Way for Louisville's Smoking Ban to Take Effect


LOUISVILLE, Ky. (AP) -- Smokers beware: Puffing will soon be prohibited in most public places in Kentucky's largest city.
A coalition of bars, restaurants and bingo hall operators on Thursday failed to win a court ruling aimed at blocking Louisville's strict smoking ban from taking effect Sunday while they pursue a lawsuit challenging the ordinance's constitutionality.

Jefferson County Circuit Judge Denise Clayton denied their request for a temporary injunction. In her ruling, Clayton wrote that the smoking ban would not cause "irreparable harm" to businesses, though she acknowledged that "some smokers may choose to stay home rather than visit an establishment where they may not smoke."

The ordinance would prohibit smoking in all public places in this one-time tobacco hub, with the exception of Churchill Downs racetrack and any tobacco manufacturer.

The groups challenging the ordinance claim the Churchill Downs exemption is unfair.

Jefferson County Attorney Irv Maze said he was pleased with the judge's ruling and said the opponents can still raise their objections when the lawsuit goes to trial later.

Maze said the opponents' strategy was to "delay, delay and delay."

"We're glad that the will of the (Metro) council can be implemented, and it's time to move forward and let the court process work," Maze said of the ruling.

Attorney Mike Hatzell, who represents about 200 bars and restaurants seeking the injunction, said he was disappointed with the ruling but said it's "just round one."

Hatzell said no decision had been made on whether to appeal.

He said that Clayton didn't address the merits of the overall case in her ruling Thursday.

"She left the door wide open on the constitutional issues," he said.

The smoking ban opponents won on an enforcement matter, however.

Clayton ruled that Louisville Metro Health Department officials can enter businesses affected by the ban only during business hours. The ordinance was written to allow health officials to go into the businesses "at all reasonable times" to enforce the smoking ban. The groups challenging the law argued that amounted to an unlawful search.

The new smoking ban will replace a less-stringent ordinance that allows smoking in bars and restaurants that receive less than 75 percent of their revenue from the sale of food served inside the restaurant. The older law also allows businesses with separately ventilated smoking rooms to continue allowing patrons to light up.

Louisville is among several Kentucky cities to ban smoking in a state that has led the nation in the production of burley tobacco, an ingredient in cigarettes.

Louisville once was a hub of the tobacco industry, but those days are long gone. Philip Morris USA closed a manufacturing plant here, and Brown & Williamson Tobacco Corp. abandoned its Louisville headquarters after merging with R.J. Reynolds Tobacco Co.

[EZ2]

Philip Morris eyeing Philippines, Singapore as hub
Wed Jul 4, 2007 6:11AM EDT
MANILA, July 4 (Reuters) - Tobacco group Philip Morris International is looking to invest $80 million either in the Philippines or Singapore for a regional facility, a Philippine government official said on Wednesday.

Armand Arreza, administrator of Subic Bay, a business zone north of Manila, told reporters he was confident the Philippines would clinch the deal as the U.S. firm's local arm was set to invest $20 million for new equipment and a tobacco leaf warehouse at Subic.

"It's a question of cost and efficiency," Arreza said.

Aside from the Philippines, Philip Morris International buys tobacco leaves from Vietnam and Indonesia and the company is looking for a regional tobacco leaf warehousing and transhipment hub, Arreza said.

In 2003, Philip Morris,part of the Altria Group Inc (MO.N: Quote, Profile, Research), spent $300 million on a cigarette manufacturing plant in Batangas City just south of the capital with an annual capacity of 30 billion sticks.

[EZ2]

LOL ~~~ one thing the politicians always seem to miss in the equation ~~~~~~~~~~~ DUH !!!!! :-{
========================================================================================

Agencies gird for a big hit in funding: When Philip Morris leaves, so will cash gifts from the company and its employees

--------------------------------------------------------------------------------

MarketWatch
05:43 a.m. 07/05/2007


Jul 05, 2007 (The Charlotte Observer - McClatchy-Tribune Information Services via COMTEX) -- When Philip Morris USA announced last week it would close its Concord cigarette plant by the end of 2010, local nonprofit organizations started doing the math.

They had received thousands of dollars over the years from Philip Morris corporate and employee giving.

Now they knew that stream of money would eventually stop.

It's still too early to speculate about funding from corporate grants or from the Philip Morris Employee Community Fund, company spokesperson Paige Magness said.

"Our focus in the first few days is, what do our employees need to know?" Magness said.

Philip Morris is starting to delve into other issues, such as corporate community giving, she said. Over the next several months, company officials will meet with community leaders and nonprofits to find out what their concerns and priorities are.

The employee fund, established in 2000, is run by employees who decide focus areas and approve applications for funding. Last year, that fund raised $900,000 for 30 agencies in Cabarrus and surrounding counties, such as Rowan, Mecklenburg and Stanly.

Last week's announcement won't affect employee fund grants scheduled to be given out this summer, Magness said.

"Any impact that may occur will be determined by future campaigns," she said. The next employee fund campaign is scheduled to take place this fall.

Some agencies Philip Morris supported, such as the American Red Cross, also receive United Way dollars. Ed Runte, vice president of the Cabarrus United Way, said it probably will have to raise its fundraising target for upcoming campaigns because its agencies will lose Philip Morris dollars.

The Red Cross last year received $92,000 from Philip Morris ($55,000 in corporate gifts and $37,000 from the employee fund).

"We have found the employee community fund extremely generous to help with unusual situations," said Cabarrus County Red Cross Executive Director Nancy Litton.

For instance, Litton said the $37,000 contribution was higher than normal so the agency could cope with reduced FEMA funding at a time when local emergency response needs (such as emergency housing) were increasing.

In addition, Philip Morris employees volunteered their time and received Red Cross training, she said.

The United Way gave the Red Cross $155,466 for 2006-07. But Litton said she doesn't expect the United Way "to fix" the problem when Philip Morris funding goes away. Instead, she said, she hopes businesses and community groups will step up "to keep some of these programs ongoing."

Last year, the Cooperative Christian Ministry, which is not a United Way agency, received $10,000 in corporate and $40,000 in employee funding from Philip Morris.

For the past few years, Philip Morris has provided money to help fund the agency's food program, including food pantries and Samaritan's Table (the soup kitchen). The support helped fund the program director's salary and other costs, such as food, utilities and supplies, Ed Hosack, the ministry's executive director, said.

Losing a reliable partner means looking for support elsewhere. The ministry is always searching for new partnerships, such as foundations and other corporate opportunities, Hosack said.

"Their impact is more than just what goes out the door," he said of Philip Morris. "They have helped us build new programs and expand what we do."

Gail Smith-Arrants: 704-786-2185

To see more of The Charlotte Observer, or to subscribe to the newspaper, go to http://www.charlotte.com . Copyright (c) 2007, The Charlotte Observer, N.C. Distributed by McClatchy-Tribune Information Services. For reprints, email [e-mail], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.