Here are the notable items from Altria’s (MO) earnings call yesterday
CEO Louis Camilleri
Regarding smokeless products”
“…Marlboro Moist Smokeless Tobacco. The latter introduction has [inaudible] much debating in ink in the recent past. While it is still early days, let me just say that we are very encouraged by the results to date, particularly in terms of the consumer response to the product and repurchase rates.”
PMI
** 70% of PMI’s top 25-income markets registered improved trends in the fourth quarter
Effect of share repurchases:
** “benefit of share repurchases in ’08 is slightly less than 1% in terms of growth, and clearly it will impact 2009’s growth rate a lot more.”
** combination of the buybacks plus the dividends equals 20% of the market cap
** Altria will start in April and PMI will start in May
Litigation risk to PMI:
“No, it’s certainly not non-existent. There has been litigation internationally as you are aware and as the disclosure showed. However, the industry has been very successful, and I think we will continue to be successful. That is not to say that there won’t be claims and litigation internationally, but it’s not something that I’m unduly concerned about.”
Most of the really big questions were deferred until the investors conference on March 11th. At that time the details of both companies will be discussed.
Disclosure (“none” means no position):Long Altria
