Philip Morris USA

Philip Morris USA (PM USA) is a wholly-owned subsidiary of Altria Group that manufactures and markets cigarettes and smokeless tobacco products in the United States. 

PM USA's role is to responsibly and effectively develop, manufacture and market superior branded cigarettes and smokeless products for adult tobacco consumers.

Philip Morris USA Select Brands

Performance and Financial Strength*

In the second-quarter of 2008, PM USA's net revenues increased 2.2% to $4.9 billion. Revenues net of excise taxes increased 3.8% to approximately $4.1 billion, primarily driven by lower wholesale promotional allowance rates, partially offset by lower volume. PM USA's second-quarter revenues included $107 million from contract volume manufactured for PMI under an agreement that is expected to terminate before the end of this year. PM USA's adjusted revenues net of excise taxes and contract volume manufactured for PMI increased 1.0% to approximately $4.0 billion.

PM USA's operating companies income increased 33.2% to $1.3 billion, due to lower pre-tax charges related to the closure of the Cabarrus, North Carolina cigarette manufacturing facility, as well as lower wholesale promotional allowance rates, partially offset by lower volume, increased resolution expenses, and costs related to the reduction of contract volume manufactured for PMI. Adjusted for items related to the Cabarrus, North Carolina facility closure, PM USA's second-quarter 2008 operating companies income increased by 3.8% to approximately $1.4 billion.

PM USA's domestic cigarette shipment volume of 43.6 billion units was 4.5% lower than the prior-year period, but was estimated to be down approximately 3.5% when adjusted for changes in trade inventories. PM USA estimates that total cigarette industry volume declined approximately 4% in the second quarter. For the first half of 2008, PM USA's domestic cigarette volume of 83.7 billion units was 2.9% lower than the prior-year period, but was estimated to be down approximately 3.5% when adjusted for changes in trade inventories. For the full-year 2008, PM USA estimates a total cigarette industry volume decline of approximately 3% to 3.5%.

Read more about PM USA’s financial information.

*Altria Group has revised its reporting segments to reflect the PMI spin-off and the December 2007 acquisition of John Middleton. Altria Group's reporting segments are Cigarettes and Other Tobacco Products, manufactured and sold by Philip Morris USA; Cigars, manufactured and sold by John Middleton; and Financial Services, provided by Philip Morris Capital Corporation.

Contact Information

Philip Morris USA
Consumer Response Center
P.O. Box 26603
Richmond, VA 23261
Tel: 804-274-2000 
(main line) or
800-343-0975
(consumer line)
E-mail: Contact PM USA

Related Information

On Altria.com:

• Our History - Philip Morris USA