Philip Morris, Reynolds Raise Cigarette Price

Philip Morris Cos. and R.J. Reynolds Tobacco Holdings Inc. have raised the wholesale price on their cigarettes by 14 cents per pack, the industry’s third price increase this year. The increase translates into about a 17-cent per pack increase for consumers, said Credit Suisse First Boston analyst Bonnie Herzog. Philip Morris, the world’s leading cigarette maker, announced an increase of $7 per 1,000 cigarettes to wholesalers on Friday to be effective Monday on all of its premium and discount brands, a spokesman for the New York-based company said. A spokesman for R.J. Reynolds said the company informed its customers on Friday that it is instituting an increase of $7 per 1,000 cigarettes effective today. Shares of Philip Morris rose $1.25 to close at $41.31, while R.J. Reynolds rose 25 cents to close at $45.75, both on the NYSE.