Altria Boosts Full-Year EPS View On SABMiller Strategic Transactions
05/16/2012| 05:05pm US/Eastern
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Altria Group Inc. (>> Altria Group, Inc.) raised its full-year earnings guidance after the company disclosed it will record a noncash gain in its first quarter.
Altria, the parent of tobacco company Philip Morris, now sees full-year earnings at $2.25 to $2.31 a share, up 11 cents from its previous view. It affirmed its adjusted earnings estimates.
The boost of 11 cents a share stems from Altria's roughly 27% ownership of SABMiller PLC (SBMRY, SAB.LN, SAB.JO), one of the world's largest brewers, which recently made strategic-alliance transactions in the first quarter. The gain reflects Altria's noncash benefit from those deals.
SABMiller implemented a number of organizational changes in its African operations, including the combination of the operational management of the Castel Group and SABMiller businesses in Nigeria and Angola. It also forged a strategic alliance with Anadolu Group and Anadolu Efes (AEFES.IS, AEBZY) for Turkey, Russia, Central Asia and the Middle East.
Altria's shares closed Wednesday at $31.86 and were unchanged after hours. The stock is up 7.5% so far this year.
-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108; ben.rubin@dowjones.com
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