(RTTNews) - Wednesday, tobacco products maker Altria Group Inc. (MO: News ) posted an increase in its third-quarter profit, helped by higher operating income, higher earnings from its equity investment in SABMiller, and lower income taxes. Adjusted per share earnings from continuing operations rose 4.3% from last year and topped the Street view. In addition, the company narrowed its earnings forecast for the full year.

Q3 Results

The Richmond, Virginia-based company's third-quarter net income attributable to Altria Group Inc. advanced 1.7% to $882 million from $867 million in the year-ago quarter. However, per share earnings were $0.42, flat with last year.

The company noted that reported results reflect higher operating companies income or OCI from financial services and cigars, as well as the OCI contribution from the UST LLC acquisition, lower income taxes, higher earnings from Altria's equity investment in SABMiller plc, and lower general corporate expenses, offset by higher interest expense, higher corporate exit costs, and lower OCI from cigarettes versus the prior-year period.

On an adjusted basis, earnings from continuing operations increased to $998 million or $0.48 per share from $951 million or $0.46 per share in the same quarter of last year.

On average, 11 analysts polled by Thomson Reuters expected the company to post earnings of $0.47 per share. Analysts' estimates typically exclude special items.
Quarterly net revenues totaled $6.30 billion, up 20.3% from the previous year's $5.24 billion, owing to higher pricing related primarily to the federal excise tax or FET increase on tobacco products, and the acquisition of UST. Six Wall Street analysts had a consensus revenue estimate of $4.66 billion for the quarter.

Michael Szymanczyk, Chairman and Chief Executive Officer of Altria, said, "The premium brands of Altria's tobacco operating companies, Marlboro, Copenhagen, Skoal and Black & Mild, continue to display great strength in a challenging operating environment. Altria remains focused on returning cash to shareholders in the form of dividends, as evidenced by our recent 6.3% dividend increase, reflecting the underlying financial strength of our businesses."

Operating income for the recent quarter grew 4.9% to $1.4 billion, due primarily to higher OCI from financial services and cigars, as well as the OCI contribution from the UST acquisition, and lower general corporate expenses.

Line of Business Segments

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