Glance: Altria shows pricing power, cuts costs

Altria Group Inc., which owns the No. 1 U.S. cigarette maker Philip Morris USA, reported that profit fell 67 percent from a year ago, when results included its overseas operations. But earnings from continuing operations rose 15 percent.

ITS STRATEGY: The cigarette seller raised prices to offset a 4.8 percent decline in domestic consumption. It also cut operating costs by 43 percent.

PENDING BUYOUT: The company plans to close its $10.4 billion acquisition of smokeless tobacco maker UST Inc. in early January. UST makes Copenhagen and Skoal products.

ITS PEERS: A day earlier, Philip Morris International — spun off from Altria in March — and U.S. rival R.J. Reynolds reported quarterly results that also pleased investors.

ITS BRANDS: Richmond, Va.-based Philip Morris USA makes Marlboro, Parliament and Virginia Slims cigarettes, as well as John Middleton cigars under the Black & Mild brand.

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