Altria Group Inc. reported first-quarter profit that fell more than analysts estimated because of lower U.S. cigarette shipments,

April 20, 2007 - Altria Group Inc. reported first-quarter profit that fell more than analysts estimated because of lower U.S. cigarette shipments, and said yesterday for the first time that it MAY SPIN OFF THE INTERNATIONAL BUSINESS - PHILIP MORRIS INTERNATIONAL. Bonnie Herzog, an analyst with Citigroup, wrote in a report that part of the loss in market share by the major tobacco manufacturers is the impact of deep-discount cigarette-makers. Deep-discount growth is putting pressure on the major manufacturers’ premium and savings segment, forcing companies to spend more money on promos/ads. Philip Morris International “is organizationally ready to stand independently” if Altria’s board decides to spin off the unit, Dinyar Devitre, Altria's Finance Chief said today on a conference call. Marlboro’s U.S. market share rose 0.4 point in the first quarter (2007) to 40.8 percent, boosted by a new menthol cigarette called Marlboro Smooth. The increase muted declines of 0.1 point by Virginia Slims and Basic cigarettes, while Parliament added 0.1 point. Total U.S. market share for Altria cigarettes was 50.4 percent, unchanged from a year earlier. (Winston Salem journalnow.com)