Philip Morris to Cut Production at Key Plant

Philip Morris Cos. said it will phase out cigarette production at one of its three main U.S. plants, resulting in the loss of up to 1,400 jobs. The company said it will record a pretax charge of about $200 million against earnings in the first half of 1999, principally to cover severance costs at its Louisville, Ky., plant. Philip Morris, the world’s largest tobacco company, said its Philip Morris Inc. unit will end cigarette output at the plant, which makes the Marlboro and other brands, because it is using only about half its capacity. Philip Morris shares fell 44 cents to close at $40.56 on the New York Stock Exchange.