EU Settlement Could Lower Altria Earnings
From Dow Jones/Associated Press
Altria Group Inc. said a cigarette-smuggling settlement with the European Union could result in the company’s 2004 earnings falling short of expectations.
The New York-based parent of Philip Morris USA and Kraft Foods Inc. cut its 2004 earnings forecast by 7 cents to $4.50 to $4.60 a share. The forecast includes expected restructuring charges at Kraft.
The European Commission has accused U.S. tobacco giants of complicity in cigarette smuggling by intentionally oversupplying neighboring countries. Such smuggling is estimated to cost European governments $1 billion annually in lost taxes.
Shares of Altria fell $1.49 to $53.40 on the New York Stock Exchange.
