Snuff Sales, Price Hikes Bolster Tobacco Profits

Higher snuff sales, cost-cutting and price increases led the nation’s biggest tobacco company, Altria Group Inc., to a 3.2-percent increase in second-quarter profits, Bloomberg reported July 21.

The company upped wholesale prices on all of its cigarette brands by eight cents a pack in May, as increased taxes drove sales down. One of Altria’s biggest brands, Marlboro, saw cigarette shipments fall 10 percent, but that was partially compensated by smokeless tobacco volume rising 9.2 percent and cigar shipments going up 20 percent.

Overall, Altria beat analyst estimates, with a $1.91 adjusted earnings share compared to a predicted $1.88. Other major cigarette companies also posted increased profits.