Marlboro Sales Push Philip Morris Profit Up 15%

Philip Morris Cos. reported Tuesday that its earnings jumped 15% in third quarter as a surprising surge in its best-selling Marlboro cigarettes resulted in better-than-expected tobacco sales in the U.S. and overseas.

Net income rose to $1.65 billion, or $2.01 a share, from $1.43 billion, or $1.71, for the year-earlier quarter. That matched the average estimate of 13 analysts polled by IBES International Inc.

Revenue for the conglomerate, also the maker of Kraft foods and Miller beer, rose 7.3% to $17.41 billion from $16.22 billion, adjusted for businesses it has sold.

Shipments by the world’s biggest cigarette maker rose a robust 7.8% in the U.S. and 9.8% elsewhere, fueled by an 11% gain in Marlboro worldwide. Increased marketing is helping Marlboro steal sales from its premium-price rivals Camel and Winston, made by RJR Nabisco Holdings Corp.

Shares in New York-based Philip Morris fell $1 to $92.50 on the New York Stock Exchange.

Operating profit at the U.S. tobacco division gained 13% to $1.1 billion as revenue rose 12% to $3.3 billion.

Overseas, Kraft’s operating profit rose 4.5% to $299 million as revenue inched up 0.5% to $2.6 billion.

The only unit that didn’t increase earnings for the third quarter was struggling beer maker Miller Brewing Co.

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Lockheed Martin’s third-quarter earnings rose 8%, reflecting the acquisition of most of Loral earlier this year.

Net income for the world’s largest aerospace and defense company rose to $311 million, or $1.55 a share, from $287 million, or $1.43, a year ago.

Bethesda, Md.-based Lockheed’s per-share earnings matched Wall Street’s forecast.

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Netscape Communications, citing strong gains by its software for corporate computer networks, reported a third-quarter profit of more than $7.7 million as revenue reached $100 million.

The No. 1 maker of software for browsing the Internet said its earnings for the three months ended Sept. 30 amounted to 9 cents a share, in line with analysts’ expectations.

The profit compares with earnings of $175,000, or less than 1 cent a share, for the same period a year ago.

At a Glance:

UAL, the parent of United Airlines and Shuttle by United, reported a 31% increase in third-quarter profit as higher ticket prices and more passengers offset higher fuel costs. For the three months ended Sept. 30, earnings rose to $437 million, or $3.29 a share fully distributed, up from $334 million, or $2.53 a share, for the same period a year earlier.

Avery Dennison reported a record third-quarter net income of $46.6 million, or 89 cents per share, compared with $35.8 million, or 67 cents, for the period last year. Chairman and Chief Executive Charles D. Miller announced that he plans to recommend a stock split and dividend increase to the Pasadena-based company’s board at its meeting Thursday.

MCI Communications reported its third-quarter profit rose to $304 million, or 44 cents a share, compared with a loss of $240 million, or 35 cents, last year.

Shell Oil’s third-quarter profit rose 14% to $493 million, from $431 million a year ago.

Sanwa Bank California reported third-quarter net income of $17.5 million, up from the $14.8 million recorded last year.

Houghton Mifflin said third-quarter profit rose 19% to $70.5 million, or $5.05 a share, from $59.2 million, or $4.29, for the third quarter of 1995.

American Brands said third-quarter earnings rose 2.3% to $136.7 million, or 80 cents a share, compared with profit from operations of $133.5 million or 72 cents, a year ago.

Salomon reported a 58% drop in third-quarter profit, to $112 million, or 88 cents a share, from $268 million, or $2.36, for the year-ago quarter.

US Surgical said its third-quarter earnings rose 9.6% to $29.2 million, or 39 cents a share, from $25.9 million, or 37 cents, for the year-earlier period.

Tenneco’s third-quarter earnings rose an unexpected 44% to $135 million, or 78 cents a share, from profit from continuing operations of $94 million, or 53 cents.

Dial said its third-quarter earnings fell 37% to $10.5 million, or 12 cents a share before restructuring charges and spinoff expenses, compared with $16.8 million, or 19 cents, in the year-ago quarter.

MGM Grand said its third-quarter profit from operations rose 69% to $26.9 million, or 46 cents a share, from net income of $15.9 million, or 33 cents, in the year-earlier period.

Home Shopping Network reported better-than-expected third-quarter profit of $7.06 million, or 7 cents a share, compared with a loss of $17.7 million, or 20 cents, last year.

Kimberly-Clark said third-quarter profit increased 2.5% to $377.2 million, or $1.34 per share, up from $367.9 million, or $1.32 per share, in the 1995 quarter.

Monsanto said its third-quarter earnings jumped 21% to $170 million, or 28 cents a share, compared with $140 million, or 23 cents, for the year-ago period.

Maxicare Health Plans reported net income of $5 million, or 27 cents per share, compared with $7.5 million, or 41 cents, last year.

* 1972 ASSESSMENT

Philip Morris memo cites nicotine’s “narcotic value.” A1