altria group Quarter Results 2006 2nd

Altria Group, Inc. 120 Park Avenue New York, NY 10017

NEWS RELEASE

Contact: Nicholas M. Rolli (917) 663-3460 Timothy R. Kellogg (917) 663-2759

ALTRIA GROUP, INC. REPORTS

2006 SECOND-QUARTER RESULTS

Reported Diluted Earnings Per Share from Continuing Operations

Down 7.9% to $1.29 vs. $1.40 in Year-Ago Quarter

Excluding Items Detailed in Table Below,

Diluted Earnings Per Share from Continuing Operations

Up 6.8% to $1.41 vs. $1.32 in Year-Ago Quarter

Forecast Raised To A Range of $5.40 to $5.50

For 2006 Full-Year Diluted Earnings Per Share from Continuing Operations

NEW YORK, July 25, 2006 Altria Group, Inc. (NYSE: MO) today announced second-

quarter 2006 reported diluted earnings per share from continuing operations of $1.29, including

items detailed on the attached Schedule 7, versus $1.40 in the year-ago period.

Our second quarter results were solid in all respects, and we are witnessing an

improvement in underlying fundamentals across all our businesses. While the global economic

outlook continues to be a source of concern, we look forward to continued momentum in the

second half of the year, said Louis C. Camilleri, chairman and chief executive officer of Altria

Group, Inc. Our domestic tobacco business continued to increase its market share, driven by

gains for both Marlboro and Parliament. Our international tobacco business achieved strong

share gains in France, Germany and Italy, and benefited from acquisitions. Our food business

made continued progress, with good top-line growth and solid income performance.

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Excluding items shown in the table below, 2006 second-quarter diluted earnings per

share from continuing operations increased 6.8%.

Q2 2006 Q2 2005 Change Reported diluted EPS from continuing operations $1.29 $1.40 (7.9%) 2005 tax items, net of minority interest impact -- (0.11) Asset impairment and exit costs, net of minority interest impact 0.09 0.03 Provision for airline industry exposure 0.03 -- Diluted EPS, excluding above items $1.41 $1.32 6.8%

As shown in the reconciliation on Schedule 7, the 7.9% decline in reported diluted

earnings per share from continuing operations was due primarily to an unfavorable comparison

with the year-ago period, which benefited from $0.11 per share in tax benefits, primarily related

to the American Jobs Creation Act (AJCA), higher Kraft restructuring charges for the second

quarter of 2006 versus 2005, and an increase in the allowance for losses related to the airline

industry at Philip Morris Capital Corporation (PMCC).

2006 Full-Year Forecast

Altria Group raised its previously announced projection for 2006 full-year diluted

earnings per share from continuing operations from a range of $5.25 to $5.35 to a range of $5.40

to $5.50. This change reflects Krafts anticipated gain on the redemption of its interest in United

Biscuits (benefiting Altria by approximately $0.09 per share), Krafts forecast for lower than

expected restructuring charges for the full year (negatively impacting Altria by approximately

$0.28 per share versus $0.36 per share in previous guidance), and a charge of $0.03 per share for

the increase in the allowance for losses related to the airline industry at PMCC. The factors

described in the Forward-Looking and Cautionary Statements section of this release represent

continuing risks to this projection.

Conference Call

A conference call with members of the investment community and news media will be

Webcast at 9:00 a.m. Eastern Time on July 25, 2006. Access is available at www.altria.com.

http://www.altria.com/

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ALTRIA GROUP, INC.

As described in Note 15. Segment Reporting of Altria Group, Inc.s 2005 Annual Report,

management reviews operating companies income, which is defined as operating income before

corporate expenses and amortization of intangibles, to evaluate segment performance and

allocate resources. Management believes it is appropriate to disclose this measure to help

investors analyze business performance and trends. For a reconciliation of operating companies

income to operating income, see the Condensed Statements of Earnings contained in this release.

All references in this news release are to continuing operations, unless otherwise noted.

2006 Second-Quarter Results

Net revenues for the second quarter of 2006 increased 4.0% versus 2005 to $25.8 billion,

including $484 million from acquisitions offset by unfavorable currency of $450 million.

Operating income decreased 1.5% to $4.4 billion, reflecting the items described in the

attached reconciliation on Schedule 3, including $247 million in charges for asset impairment

and exit costs, primarily at Kraft, an increase of $103 million in the allowance for losses related

to the airline industry at PMCC and unfavorable currency of $67 million. These were partially

offset by higher results from operations of $227 million, and the positive impact from

acquisitions of $81 million, primarily Sampoerna.

Earnings from continuing operations decreased 6.9% to $2.7 billion, reflecting the factors

mentioned above and favorable tax items of $227 million, or $0.11 per share, in the second

quarter of 2005, primarily due to the repatriation of $6.0 billion of earnings under provisions of

the AJCA. The companys effective tax rate was 33.6% in the second quarter of 2006 compared

to 28.7% for the same period in 2005, which reflected the dividend repatriation under the AJCA.

Net earnings, including discontinued operations, increased 1.6% to $2.7 billion, aided by

a favorable comparison with the second quarter of 2005, when Altria recorded a $245 million net

loss from discontinued operations, net of minority interest, as a result of Krafts sale of its sugar

confectionery business. Diluted earnings per share, including discontinued operations as detailed

on Schedule 1, increased 0.8% to $1.29, driven by the factors mentioned above.

During the second quarter of 2006, Altria Group, Inc. declared a regular quarterly

dividend of $0.80 per common share, which represents an annualized rate of $3.20 per common

share.

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DOMESTIC TOBACCO


For the second quarter of 2006, Philip Morris USA (PM USA), Altria Group, Inc.s

domestic tobacco business, delivered solid income growth and strong share performance, driven

by Marlboro and Parliament.

Operating companies income increased 3.2% to $1.3 billion, primarily driven by lower

wholesale and retail promotional allowance rates, partially offset by lower volume.

Shipment volume of 47.2 billion units was down 4.3% from the previous year, reflecting

changes in wholesale and retail trade inventory levels and the timing of 4th of July trade

purchases versus the year-ago period. Adjusting for those factors, PM USA estimates that

shipment volume declined approximately 2.0% in the second quarter of 2006 versus the second

quarter of 2005. Premium mix for PM USA increased by 0.4 percentage points to 92.0% in the

second quarter of 2006.

As shown in the following table, PM USAs total retail share increased to 50.5% in the

second quarter of 2006, driven by Marlboro and Parliament.

Philip Morris USA Quarterly Retail Share*

Q2 2006 Q2 2005 ChangeMarlboro 40.6% 40.0% 0.6 pp Parliament 1.9% 1.7% 0.2 pp Virginia Slims 2.3% 2.3% 0.0 pp Basic 4.2% 4.3% -0.1 ppFocus Brands 49.0% 48.3% 0.7 pp Other PM USA 1.5% 1.7% -0.2 ppTotal PM USA 50.5% 50.0% 0.5 pp * IRI/Capstone Total Retail Panel was developed to measure market share in retail stores selling cigarettes. It is not designed to capture Internet or direct mail sales.

PM USAs share of the premium category was up 0.1 share points to 62.1%, while its

share of the discount category grew 0.3 share points to 16.7%. The total industrys premium

category share increased 0.9 points to 74.6% in the second quarter of 2006, while the discount

category share correspondingly declined to 25.4%. Within the discount category, share of the

deep discount segment (which includes both major manufacturers private label brands and all

other manufacturers discount brands) declined 0.5 points to 11.3%.

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As part of its tobacco category adjacency growth strategy to develop new revenue and

income sources for the future, PM USA began test marketing a smoke-free and spit-free tobacco

pouch product, called Taboka, designed especially for adult smokers interested in smokeless

tobacco alternatives to smoking. Taboka Tobaccopaks come in two versions Taboka

Original and Taboka Green, which is a menthol version. PM USA began test marketing

Taboka in the Indianapolis area in early July.

On June 19, the Illinois Supreme Court, with consent from both parties, ordered the

return to PM USA of the approximately $2.15 billion in cash securing the appeal bond in the

Price Lights case. A $6 billion note, which also secured the 2003 judgment, will be returned

to the company if the U.S. Supreme Court declines to hear the plaintiffs appeal. PM USAs

obligations to deposit payments on the note and to pay administrative fees to the Madison

County, Illinois clerk also were terminated by the courts order on June 19.

INTERNATIONAL TOBACCO


Philip Morris International Inc. (PMI), Altria Group, Inc.s international tobacco

business, delivered strong volume and income performance in the second quarter of 2006,

despite the challenging environment in Spain.

Cigarette shipment volume increased 5.7% to 213.9 billion units. The impact of

acquisitions in Indonesia and Colombia, and favorable timing of shipments in Italy, coupled with

solid gains in Argentina, France, Poland, Ukraine and worldwide duty-free, were partially offset

by declines in Portugal and Spain, as well as Japan and Russia due to unfavorable timing of

shipments. Excluding acquisitions, PMIs cigarette shipment volume was up 0.8%. PMIs total

tobacco volume, which included 2.2 billion cigarette equivalent units of other tobacco products

(OTPs), grew 6.0% to 216.1 billion units.

Operating companies income was up 5.7% to $2.1 billion, due primarily to higher pricing

and the favorable impact of acquisitions of $81 million, partially offset by a negative currency

impact of $68 million.

PMIs market share in the second quarter of 2006 advanced in many countries, with gains

achieved in several major markets including Argentina, Austria, Belgium, Brazil, Egypt, France,

Germany, Hungary, Indonesia, Italy, Korea, Malaysia, Mexico, the Philippines, Poland,

Switzerland, Turkey and Ukraine.

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Total Marlboro cigarette shipments of 81.6 billion units were down 2.0%, due mainly to

the impact of the timing of shipments in Japan, as well as lower volume in Germany and

Argentina. Marlboro market shares were up in Australia, Brazil, France, Greece, Hungary,

Italy, Japan, Korea, Kuwait, Malaysia, Mexico, the Philippines, Russia, Saudi Arabia and

Ukraine. PMI recently launched Marlboro Wides in Portugal, France and Spain, and plans

additional market introductions later this year.

In the European Union (EU) region, PMIs cigarette shipments were up 0.8%, as gains in

France and Poland, and the favorable timing of shipments in Italy, were largely offset by

declines in Spain, Germany and Portugal. PMIs cigarette market share in the EU region was

39.3%, down 0.2 points as strong share performances in France, Germany, Italy and Poland were

offset by declines in the Czech Republic, Portugal and Spain. Importantly, PMIs share of total

tobacco consumption (cigarettes and OTPs) in the EU was up 0.4 points to 35.4%.

In Germany, total tobacco consumption declined 5.6%, but PMIs total tobacco

shipments were up 1.2%. PMIs share of total tobacco consumption increased 2.0 points to

30.8%, representing sequential share growth for the third consecutive quarter. The total cigarette

market declined 7.8%, while PMIs cigarette volume was down 6.1%, resulting in PMIs

cigarette market share rising 0.7 points to 37.6%, driven by L&M. Industry volume for tobacco

portions declined 14.4% to 4.7 billion units in the second quarter and PMIs share of tobacco

portions rose 11.0 points to 25.1%. As of April 2006, tobacco portions can no longer be

manufactured under favorable tax conditions in Germany. However, the retail availability of

tobacco portions is expected to remain through the third quarter of this year.

In Italy, the total cigarette market declined 1.5%, primarily reflecting two less selling

days versus the prior-year quarter. PMIs reported shipment volume was up 19.8%, helped by

the timing of shipments and a favorable comparison with the second quarter of 2005, when

PMIs new distributor in Italy reduced its inventory by 1.0 billion units. Market share in Italy

rose 0.9 points to 53.6%, driven by Chesterfield and Marlboro, which increased 0.5 share

points to 22.8%.

In France, PMIs volume and share performed strongly, reflecting a stable pricing

environment and moderate price gaps. Shipments rose 10.9% and share grew 1.1 points to

42.8% behind the continued success of Marlboro and the Philip Morris brand.

In Spain, the total cigarette market declined 2.5%, but was essentially flat when adjusted

for two less selling days in the second quarter of 2006, and reflects some recovery after the first

quarter impact of the new tobacco law implemented on January 1. PMIs cigarette shipments

were down 14.2%, driven by the lower industry, unfavorable inventory movements and market

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share, which was 3.0 points lower at 31.6%. On a sequential basis, PMIs market share has been

resilient over the past three quarters at approximately 32%. Most of PMIs share losses,

compared to last years second quarter, were the result of declines in Chesterfield in the

medium-price category and L&M in the low-price category. Premium-price Marlboros share

in the second quarter was down a more moderate 0.3 share points to 16.7%, while Chesterfield

and L&M were impacted by the repositioning of a competitive brand from the premium-price

segment to the low-price segment. In addition, PMIs share was impacted by the continued

availability of competitive brands in the super-low segment, priced as low as 1.85 euros for a

pack of 20 cigarettes. However, PMI believes that over time its strong brand portfolio will

steadily regain market share losses in Spain.

In the Czech Republic, the total market was essentially flat. PMIs shipments were down

12.3% and share was lower, reflecting intense price competition. In Portugal, the total market

was down 11.2%, due primarily to lower overall consumption and higher cross-border purchases

in Spain. PMIs shipments declined 16.1% in Portugal and share was down 4.7 points to 79.7%,

due to severe price competition and excise tax absorption by some manufacturers.

In Eastern Europe, the Middle East and Africa, PMIs shipments grew 0.6%, due mainly

to continued gains in Ukraine as well as several North African markets, largely offset by lower

shipments in Russia and Turkey. Shipments in Russia were down 2.1%, driven by unfavorable

distributor inventory movements versus the prior-year quarter and declines for local lower-

margin offerings, as well as L&M, partially offset by gains for Marlboro, Muratti and

Parliament. In Turkey, shipments were down 4.3%. However, market share rose 2.1 points to

42.6%, driven mainly by the continued success of Lark, partially offset by a decline in low-price

Bond Street. In Ukraine, shipments rose 5.8%, while market share increased 0.6 points to

32.7%, driven by the continued growth of Marlboro and Chesterfield.

In Asia (including Japan), volume increased 20.5%, driven by the acquisition of

Sampoerna in Indonesia. Excluding the acquisition, volume was down 2.4%, due primarily to a

difficult comparison with the prior-year quarter in Japan.

In Japan, the total market was inflated by trade loading patterns and rose 13.8%,

reflecting trade purchasing ahead of a tax-driven price increase on July 1, 2006. PMIs in-

market sales were up 12.7%, also reflecting trade purchasing in advance of the July price

increase. Market share declined 0.2 points to 24.4%, although Marlboros share was up 0.2

points to 9.8%. Shipments were down 1.1 billion units or 5.7%, reflecting an unfavorable

comparison due to distributor inventory movements related to the return of the Marlboro license

in Japan in May 2005.

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In Indonesia, PMI achieved a 27.5% share in the second quarter, up 1.9 share points on a

pro forma basis versus the prior-year quarter, demonstrating the continued strength of its brand

portfolio, led by A Mild, Dji Sam Soe and A Hijau.

PMIs volume in Latin America increased 10.1%, due to good performances in Argentina

and Mexico, as well as the acquisition of Coltabaco in Colombia. Excluding that acquisition,

volume advanced 6.0%. The total market in Argentina was up 10.2%, while PMIs shipments

grew 17.5% and share was up 4.1 points to 66.2%, driven by the price repositioning of the Philip

Morris brand and the recent launch of Next in the ultra low-price segment. In Mexico, PMI

shipments and market share advanced versus the prior-year quarter, driven by the continued

momentum of Marlboro and Benson & Hedges.

FOOD


Yesterday, Kraft Foods Inc. (Kraft) reported 2006 second-quarter results. Krafts net

revenues were up 3.4% to $8.6 billion, reflecting positive product mix, the impact of price

increases and gains in Eastern Europe and Latin America, as well as solid growth in North

America, partially offset by the impact of divestitures, as well as unfavorable currency of $32

million.

Ongoing volume growth of 0.9% included gains in cheese, meats and coffee. Volume

growth also included an estimated one percentage point benefit from the shift in timing of Easter

shipments versus last year. In addition, the impact of product item pruning and the

discontinuation of select product lines represented approximately 2% of prior-year volume.

Operating income decreased 5.8% to $1.2 billion for the second quarter, due to higher

asset impairment, exit and implementation costs. However, excluding those costs and

gains/losses on the sale of businesses, operating income increased 9.3% and operating income

margin increased to 16.6% from 15.7%. These gains were driven by net revenue growth and

cost savings. Higher packaging and energy costs partially offset the expansion in operating

income margins.

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NORTH AMERICAN FOOD


For the second quarter 2006, Kraft North America Commercial (KNAC) net revenues

were up 3.4% to $5.9 billion, reflecting increases in Convenient Meals, Snacks & Cereals,

Beverages and Cheese & Foodservice and favorable currency of $48 million, partially offset by

declines in Grocery. Ongoing volume increased 1.0% due to higher volume in Cheese &

Foodservice, Convenient Meals, Grocery and Snacks & Cereals, partially offset by decreases in

Beverages, driven largely by the impact of discontinued products. Operating companies income

decreased 1.5% to $1.0 billion, with higher asset impairment and exit costs only partially offset

by productivity and restructuring savings, positive mix, and favorable currency of $8 million.

INTERNATIONAL FOOD


For the second quarter 2006, net revenues for Kraft International Commercial (KIC)

increased 3.5% to $2.7 billion, reflecting increases in Developing Markets, Oceania & North

Asia, partially offset by unfavorable currency of $80 million. Ongoing volume was up 0.5%,

with an increase in the European Union partially offset by a slight decline in Developing

Markets, Oceania & North Asia. Operating companies income decreased 25.5% to $184 million,

due to higher restructuring and impairment charges, as well as unfavorable currency of $7

million, partially offset by positive mix and price increases.

FINANCIAL SERVICES


Philip Morris Capital Corporation (PMCC) reported an operating companies loss of $59

million for the second quarter of 2006, versus operating companies income of $70 million for the

year-earlier period. Results reflect an increase of $103 million in the allowance for losses related

to continuing issues within the airline industry. Consistent with its strategic shift in 2003, PMCC

is focused on managing its existing portfolio of finance assets in order to maximize gains and

generate cash flow from asset sales and related activities. PMCC is no longer making new

investments and expects that its operating companies income will fluctuate over time as leases

mature or assets are sold.

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Altria Group, Inc. Profile

Altria Group, Inc. owns approximately 88.1% of the outstanding common shares of Kraft

Foods Inc. and 100% of the outstanding common shares of Philip Morris International Inc.,

Philip Morris USA Inc. and Philip Morris Capital Corporation. In addition, Altria Group, Inc.

owns approximately 28.7% of SABMiller plc. The brand portfolio of Altria Group, Inc.s

consumer packaged goods companies includes such well-known names as Kraft, Jacobs, L&M,

Marlboro, Maxwell House, Nabisco, Oreo, Oscar Mayer, Parliament, Philadelphia, Post

and Virginia Slims. Altria Group, Inc. recorded 2005 net revenues of $97.9 billion.

Trademarks and service marks mentioned in this release are the registered property of, or

licensed by, the subsidiaries of Altria Group, Inc.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other forward-looking statements that

involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the

Private Securities Litigation Reform Act of 1995. The following important factors could cause actual

results and outcomes to differ materially from those contained in such forward-looking statements.

Altria Group, Inc.s consumer products subsidiaries are subject to changing prices for raw

materials; intense price competition; changes in consumer preferences and demand for their products;

fluctuations in levels of customer inventories; the effects of foreign economies and local economic and

market conditions; unfavorable currency movements and changes to income tax laws. Their results are

dependent upon their continued ability to promote brand equity successfully; to anticipate and respond

to new consumer trends; to develop new products and markets and to broaden brand portfolios in order

to compete effectively with lower-priced products; to improve productivity; and to respond effectively

to changing prices for their raw materials.

Altria Group, Inc.s tobacco subsidiaries (Philip Morris USA and Philip Morris International)

continue to be subject to litigation, including risks associated with adverse jury and judicial

determinations, courts reaching conclusions at variance with the companys understanding of applicable

law, bonding requirements and the absence of adequate appellate remedies to get timely relief from any

of the foregoing; price gaps and changes in price gaps between premium and lowest-price brands;

legislation, including actual and potential excise tax increases; discriminatory excise tax structures;

increasing marketing and regulatory restrictions; the effects of price increases related to excise tax

increases and concluded tobacco litigation settlements on consumption rates and consumer preferences

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within price segments; health concerns relating to the use of tobacco products and exposure to

environmental tobacco smoke; governmental regulation; privately imposed smoking restrictions; and

governmental and grand jury investigations.

Altria Group, Inc. and its subsidiaries are subject to other risks detailed from time to time

in its publicly filed documents, including its Quarterly Report on Form 10-Q for the period ended

March 31, 2006. Altria Group, Inc. cautions that the foregoing list of important factors is not

complete and does not undertake to update any forward-looking statements that it may make.

# # #

ALTRIA GROUP, INC. and SubsidiariesCondensed Statements of Earnings For the Quarters Ended June 30 (Unaudited) - Schedule 1

(in millions, except per share data)

Quarter Ended Quarter EndedJune 30,

2006June 30,

2005

Net revenues. . . . . . . . . . . . . . . . . . . . . . . . 25,769$ 24,784$Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . 9,393 9,134Excise taxes on products (*) . . . . . . . . . . . . . 7,895 7,459Gross profit. . . . . . . . . . . . . . . . . . . . . . . . . 8,481 8,191Marketing, administration and research costs . 3,516 3,478Domestic tobacco headquarters relocationcharges . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Asset impairment and exit costs . . . . . . . . . . 247 50Losses on sales of businesses, net . . . . . . . . . 8 1Provision for airline industry exposure . . . . . . 103 Operating companies income . . . . . . . . . . . . 4,607 4,660Amortization of intangibles . . . . . . . . . . . . . . 9 4General corporate expenses . . . . . . . . . . . . . 163 165Asset impairment and exit costs . . . . . . . . . . 32 20Operating income . . . . . . . . . . . . . . . . . . . . 4,403 4,471Interest and other debt expense, net . . . . . . . 266 320Earnings from continuing operations beforeincome taxes, minority interest, and equityearnings, net. . . . . . . . . . . . . . . . . . . . . . . 4,137 4,151

Provision for income taxes . . . . . . . . . . . . . . 1,388 1,192Earnings from continuing operations beforeminority interest and equity earnings, net . . 2,749 2,959

Minority interest in earnings from continuingoperations, and equity earnings, net . . . . . . 38 47

Earnings from continuing operations . . . . . . . 2,711 2,912Loss from discontinued operations, net ofincome taxes and minority interest (**) . . . . (245)

Net earnings . . . . . . . . . . . . . . . . . . . . . . . . 2,711$ 2,667$

Per share data (***):Basic earnings per share from continuingoperations. . . . . . . . . . . . . . . . . . . . . . . . . 1.30$ 1.41$

Basic earnings per share from discontinuedoperations. . . . . . . . . . . . . . . . . . . . . . . . . $ (0.12$ )

Basic earnings per share. . . . . . . . . . . . . . . . 1.30$ 1.29$

Diluted earnings per share from continuingoperations. . . . . . . . . . . . . . . . . . . . . . . . . 1.29$ 1.40$

Diluted earnings per share from discontinuedoperations. . . . . . . . . . . . . . . . . . . . . . . . . $ (0.12$ )

Diluted earnings per share . . . . . . . . . . . . . . 1.29$ 1.28$

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Weighted average number of sharesoutstanding - Basic . . . . . . . . . . . . . . . . . . 2,085 2,067

Weighted average number of sharesoutstanding - Diluted . . . . . . . . . . . . . . . . . 2,102 2,087

(*) The detail of excise taxes on products soldis as follows:

Domestic tobacco . . . . . . . . . . . . . . . . . . . . 931$ 971$International tobacco . . . . . . . . . . . . . . . . . . 6,964 6,488Total excise taxes . . . . . . . . . . . . . . . . . . . . 7,895$ 7,459$

Currency decreased international tobaccoexcise taxes by . . . . . . . . . . . . . . . . . . . . . 228$ $

(**) Discontinued operations in 2005 includes $(255) from loss on sale, and $10 ofearnings, net of minority interest impact

(***) Basic and diluted earnings per share are computed for each of the periods presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.

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ALTRIA GROUP, INC. and SubsidiariesSelected Financial Data by Business Segment For the Quarters Ended June 30, (Unaudited) - Schedule 2

(in millions)

DomesticTobacco

Internat'lTobacco

NorthAmericanFood

Internat'lFood

FinancialServices Total

2006 Net Revenues . 4,785$ 12,310$ 5,945$ 2,674$ 55$ 25,769$2005 Net Revenues . 4,790 11,565 5,751 2,583 95 24,784

Reconciliation:2005 Net Revenues . 4,790$ 11,565$ 5,751$ 2,583$ 95$ 24,784$Divested businesses- 2005 . . . . . . . . . (87) (5) (92)

Divested businesses- 2006 . . . . . . . . . 3 3

Implementation -2005 . . . . . . . . . . 1 1

Implementation -2006 . . . . . . . . . .

Acquired businesses 484 484Currency . . . . . . . . (418) 48 (80) (450)Operations . . . . . . . (5) 679 229 176 (40) 1,0392006 Net Revenues . 4,785$ 12,310$ 5,945$ 2,674$ 55$ 25,769$

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ALTRIA GROUP, INC. and SubsidiariesSelected Financial Data by Business Segment For the Quarters Ended June 30, (Unaudited) - Schedule 3

(in millions)

DomesticTobacco

Internat'lTobacco

NorthAmericanFood

Internat'lFood


2006 Operating CompaniesIncome. . . . . . . . . . . . . 1,301$ 2,139$ 1,042$ 184$ (59$ ) 4,607$

2005 Operating CompaniesIncome. . . . . . . . . . . . . 1,261 2,024 1,058 247 70 4,660

Reconciliation:2005 Operating CompaniesIncome. . . . . . . . . . . . . 1,261$ 2,024$ 1,058$ 247$ 70$ 4,660$

Divested businesses -2005 . . . . . . . . . . . . . . 2 2

Domestic tobaccoheadquarters relocationcharges - 2005 . . . . . . . 2 2

Asset impairment and exitcosts - 2005 . . . . . . . . . 21 5 24 50

Losses on sales ofbusinesses - 2005 . . . . . 1 1

Implementation costs -2005 . . . . . . . . . . . . . . 18 8 26

2 21 26 32 81

Divested businesses -2006 . . . . . . . . . . . . . .

Asset impairment and exitcosts - 2006 . . . . . . . . . (21) (120) (106) (247)

Losses on sales ofbusinesses - 2006 . . . . . (8) (8)

Implementation costs -2006 . . . . . . . . . . . . . . (10) (7) (17)

Provision for airlineindustry exposure - 2006 (103) (103)

(21) (138) (113) (103) (375)

Acquired businesses. . . . . 81 81Currency. . . . . . . . . . . . . (68) 8 (7) (67)Operations . . . . . . . . . . . 38 102 88 25 (26) 2272006 Operating CompaniesIncome. . . . . . . . . . . . . 1,301$ 2,139$ 1,042$ 184$ (59$ ) 4,607$

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ALTRIA GROUP, INC. and SubsidiariesCondensed Statements of Earnings For the Six Months Ended June 30, (Unaudited) - Schedule 4

(in millions, except per share data)

6 Months Ended 6 Months EndedJune 30,

2006June 30,

2005

Net revenues . . . . . . . . . . . . . . . . . . . . . . . 50,124$ 48,402$Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . 18,308 17,805Excise taxes on products (*). . . . . . . . . . . . . 15,441 14,615Gross profit . . . . . . . . . . . . . . . . . . . . . . . . 16,375 15,982Marketing, administration and research costs . 6,903 6,874Domestic tobacco headquarters relocationcharges . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Italian antitrust charge. . . . . . . . . . . . . . . . . 61 Asset impairment and exit costs . . . . . . . . . . 451 203Losses (gains) on sales of businesses, net . . . 11 (115)Provision for airline industry exposure . . . . . . 103 Operating companies income . . . . . . . . . . . . 8,846 9,017Amortization of intangibles . . . . . . . . . . . . . . 16 8General corporate expenses . . . . . . . . . . . . . 316 324Asset impairment and exit costs . . . . . . . . . . 32 38Operating income . . . . . . . . . . . . . . . . . . . . 8,482 8,647Interest and other debt expense, net. . . . . . . 509 601Earnings from continuing operations beforeincome taxes, minority interest, and equityearnings, net . . . . . . . . . . . . . . . . . . . . . . 7,973 8,046

Provision for income taxes . . . . . . . . . . . . . . 1,677 2,483Earnings from continuing operations beforeminority interest and equity earnings, net . . 6,296 5,563

Minority interest in earnings from continuingoperations, and equity earnings, net . . . . . . 108 67

Earnings from continuing operations . . . . . . . 6,188 5,496Loss from discontinued operations, net ofincome taxes and minority interest (**). . . . (233)

Net earnings . . . . . . . . . . . . . . . . . . . . . . . . 6,188$ 5,263$

Per share data (***):Basic earnings per share from continuingoperations . . . . . . . . . . . . . . . . . . . . . . . . 2.97$ 2.66$

Basic earnings per share from discontinuedoperations . . . . . . . . . . . . . . . . . . . . . . . . $ (0.11$ )

Basic earnings per share . . . . . . . . . . . . . . . 2.97$ 2.55$

Diluted earnings per share from continuingoperations . . . . . . . . . . . . . . . . . . . . . . . . 2.94$ 2.64$

Diluted earnings per share from discontinuedoperations . . . . . . . . . . . . . . . . . . . . . . . . $ (0.11$ )

Diluted earnings per share . . . . . . . . . . . . . . 2.94$ 2.53$

16

Weighted average number of sharesoutstanding - Basic . . . . . . . . . . . . . . . . . . 2,083 2,064

Weighted average number of sharesoutstanding - Diluted . . . . . . . . . . . . . . . . . 2,102 2,084

(*) The detail of excise taxes on products soldis as follows:

Domestic tobacco . . . . . . . . . . . . . . . . . . . . 1,786$ 1,816$International tobacco . . . . . . . . . . . . . . . . . . 13,655 12,799Total excise taxes . . . . . . . . . . . . . . . . . . . . 15,441$ 14,615$

Currency decreased international tobaccoexcise taxes by . . . . . . . . . . . . . . . . . . . . . 589$ $

(**) Discontinued operations in 2005 includes $(255) from loss on sale, and $22 ofearnings, net of minority interest impact

(***) Basic and diluted earnings per share are computed for each of the periods presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.

17

ALTRIA GROUP, INC. and SubsidiariesSelected Financial Data by Business Segment For the Six Months Ended June 30 (Unaudited) - Schedule 5

(in millions)

DomesticTobacco

Internat'lTobacco

NorthAmericanFood

Internat'lFood


2006 Net Revenues . 9,108$ 24,111$ 11,588$ 5,154$ 163$ 50,124$2005 Net Revenues . 8,936 22,910 11,304 5,089 163 48,402

Reconciliation:2005 Net Revenues . 8,936$ 22,910$ 11,304$ 5,089$ 163$ 48,402$Divested businesses- 2005 . . . . . . . . . (210) (22) (232)

Divested businesses- 2006 . . . . . . . . . 18 18

Implementation -2005 . . . . . . . . . . 1 1

Implementation -2006 . . . . . . . . . .

Acquired businesses 1,192 1,192Currency . . . . . . . . (1,072) 72 (199) (1,199)Operations . . . . . . . 172 1,081 403 286 1,9422006 Net Revenues . 9,108$ 24,111$ 11,588$ 5,154$ 163$ 50,124$

18

ALTRIA GROUP, INC. and SubsidiariesSelected Financial Data by Business Segment For the Six Months Ended June 30 (Unaudited) - Schedule 6

(in millions)

DomesticTobacco

Internat'lTobacco

NorthAmericanFood

Internat'lFood


2006 Operating CompaniesIncome. . . . . . . . . . . . . 2,417$ 4,106$ 1,938$ 348$ 37$ 8,846$

2005 Operating CompaniesIncome. . . . . . . . . . . . . 2,299 4,099 1,968 540 111 9,017

Reconciliation:2005 Operating CompaniesIncome. . . . . . . . . . . . . 2,299$ 4,099$ 1,968$ 540$ 111$ 9,017$

Divested businesses -2005 . . . . . . . . . . . . . . (2) (3) (5)

Domestic tobaccoheadquarters relocationcharges - 2005 . . . . . . . 3 3

Asset impairment and exitcosts - 2005 . . . . . . . . . 24 122 57 203

Losses (gains) on sales ofbusinesses - 2005 . . . . . 1 (116) (115)

Implementation costs -2005 . . . . . . . . . . . . . . 32 13 45

3 24 153 (49) 131

Divested businesses -2006 . . . . . . . . . . . . . . (1) (1)

Italian antitrust charge -2006 . . . . . . . . . . . . . . (61) (61)

Asset impairment and exitcosts - 2006 . . . . . . . . . (23) (254) (174) (451)

Losses on sales ofbusinesses - 2006 . . . . . (11) (11)

Implementation costs -2006 . . . . . . . . . . . . . . (17) (13) (30)

Provision for airlineindustry exposure - 2006 (103) (103)

(84) (283) (187) (103) (657)

Acquired businesses. . . . . 227 227Currency. . . . . . . . . . . . . (224) 13 (19) (230)Operations . . . . . . . . . . . 115 64 87 63 29 3582006 Operating CompaniesIncome. . . . . . . . . . . . . 2,417$ 4,106$ 1,938$ 348$ 37$ 8,846$

19

ALTRIA GROUP, INC. and SubsidiariesNet Earnings For the Quarters Ended June 30 (Unaudited) - Schedule 7

(in millions)

Net Earnings

2006 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . 2,711$2005 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . 2,912$

Reconciliation:2005 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . 2,912$2005 Domestic tobacco headquarters relocation charges . . . . 12005 Asset impairment, exit and implementation costs, net ofminority interest impact . . . . . . . . . . . . . . . . . . . . . . . . . 47

2005 Losses on sales of businesses, net of minority interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2005 Corporate asset impairment and exit costs . . . . . . . . . 132005 Tax items, net of minority interest impact . . . . . . . . . . (227)

(165)

2006 Asset impairment, exit and implementation costs, net ofminority interest impact . . . . . . . . . . . . . . . . . . . . . . . . . (159)

2006 Losses on sales of businesses, net of minority interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3)

2006 Corporate asset impairment and exit costs . . . . . . . . . (21)2006 Provision for airline industry exposure. . . . . . . . . . . . . (66)2006 Tax items, net of minority interest impact . . . . . . . . . . (2)

(251)

Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44)Change in shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Change in tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2232006 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . 2,711$2006 Discontinued Earnings . . . . . . . . . . . . . . . . . . . . . . . . $2006 Net Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,711$

20

ALTRIA GROUP, INC. and SubsidiariesDiluted Earnings Per Share For the Quarters Ended June 30 (Unaudited) - Schedule 7

(Dollars per share)

Diluted E.P.S. (*)

2006 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.29$2005 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.40$

Reconciliation:2005 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.40$2005 Domestic tobacco headquarters relocation charges . . . . . 2005 Asset impairment, exit and implementation costs, net ofminority interest impact . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.02

2005 Losses on sales of businesses, net of minority interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2005 Corporate asset impairment and exit costs . . . . . . . . . . . 0.012005 Tax items, net of minority interest impact . . . . . . . . . . . . (0.11)

(0.08)

2006 Asset impairment, exit and implementation costs, net ofminority interest impact . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.08)

2006 Losses on sales of businesses, net of minority interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2006 Corporate asset impairment and exit costs . . . . . . . . . . . (0.01)2006 Provision for airline industry exposure . . . . . . . . . . . . . . (0.03)2006 Tax items, net of minority interest impact . . . . . . . . . . . .

(0.12)

Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.02)Change in shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.01)Change in tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.02Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.102006 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.29$2006 Discontinued Earnings . . . . . . . . . . . . . . . . . . . . . . . . . $2006 Net Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.29$

(*) Basic and diluted earnings per share are computed for each of the periodspresented. Accordingly, the sum of the quarterly earnings per share amounts maynot agree to the year-to-date amounts.

21

ALTRIA GROUP, INC. and SubsidiariesNet Earnings For the Six Months Ended June 30 (Unaudited) - Schedule 8

(in millions)

Net Earnings

2006 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . 6,188$2005 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . 5,496$

Reconciliation:2005 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . 5,496$2005 Domestic tobacco headquarters relocation charges . . . . 22005 Asset impairment, exit and implementation costs, net ofminority interest impact . . . . . . . . . . . . . . . . . . . . . . . . . 144

2005 Gains on sales of businesses, net of minority interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (64)

2005 Corporate asset impairment and exit costs . . . . . . . . . 252005 Tax items, net of minority interest impact . . . . . . . . . . (266)

(159)

2006 Italian antitrust charge . . . . . . . . . . . . . . . . . . . . . . . (61)2006 Asset impairment, exit and implementation costs, net ofminority interest impact . . . . . . . . . . . . . . . . . . . . . . . . . (284)

2006 Losses on sales of businesses, net of minority interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6)

2006 Corporate asset impairment and exit costs . . . . . . . . . (21)2006 Provision for airline industry exposure. . . . . . . . . . . . . (66)2006 Tax items, net of minority interest impact . . . . . . . . . . 965

527

Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (151)Change in shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Change in tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4082006 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . 6,188$2006 Discontinued Earnings . . . . . . . . . . . . . . . . . . . . . . . . $2006 Net Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,188$

22

ALTRIA GROUP, INC. and SubsidiariesDiluted Earnings Per Share For the Six Months Ended June 30 (Unaudited) - Schedule 8

(Dollars per share)

Diluted E.P.S. (*)

2006 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.94$2005 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.64$

Reconciliation:2005 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.64$2005 Domestic tobacco headquarters relocation charges . . . . . 2005 Asset impairment, exit and implementation costs, net ofminority interest impact . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.07

2005 Gains on sales of businesses, net of minority interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.03)

2005 Corporate asset impairment and exit costs . . . . . . . . . . . 0.012005 Tax items, net of minority interest impact . . . . . . . . . . . . (0.13)

(0.08)

2006 Italian antitrust charge . . . . . . . . . . . . . . . . . . . . . . . . . (0.03)2006 Asset impairment, exit and implementation costs, net ofminority interest impact . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.14)

2006 Loss on sales of businesses, net of minority interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2006 Corporate asset impairment and exit costs . . . . . . . . . . . (0.01)2006 Provision for airline industry exposure . . . . . . . . . . . . . . (0.03)2006 Tax items, net of minority interest impact . . . . . . . . . . . . 0.46

0.25

Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.07)Change in shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.03)Change in tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.03Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.202006 Continuing Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.94$2006 Discontinued Earnings . . . . . . . . . . . . . . . . . . . . . . . . . $2006 Net Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.94$

(*) Basic and diluted earnings per share are computed for each of the periodspresented. Accordingly, the sum of the quarterly earnings per share amounts maynot agree to the year-to-date amounts.

23

ALTRIA GROUP, INC. and SubsidiariesCondensed Balance Sheets (Unaudited) - Schedule 9

(in millions, except ratios)

June 30,2006

December 31,2005

AssetsCash and cash equivalents . . . . . . . . . . . . . . . . . . 5,613$ 6,258$All other current assets. . . . . . . . . . . . . . . . . . . . . 19,818 19,523Property, plant and equipment, net . . . . . . . . . . . . 16,876 16,678Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,154 31,219Other intangible assets, net . . . . . . . . . . . . . . . . . 12,194 12,196Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,250 14,667Total consumer products assets. . . . . . . . . . . . . . . 99,905 100,541Total financial services assets . . . . . . . . . . . . . . . . 6,859 7,408Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106,764$ 107,949$

Liabilities and Stockholders' EquityShort-term borrowings . . . . . . . . . . . . . . . . . . . . . 3,264$ 2,836$Current portion of long-term debt . . . . . . . . . . . . . 2,852 3,430Accrued settlement charges . . . . . . . . . . . . . . . . . 2,233 3,503All other current liabilities . . . . . . . . . . . . . . . . . . . 16,838 16,389Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . 14,186 15,653Deferred income taxes . . . . . . . . . . . . . . . . . . . . . 7,825 8,492Other long-term liabilities . . . . . . . . . . . . . . . . . . . 12,757 13,813Total consumer products liabilities . . . . . . . . . . . . . 59,955 64,116Total financial services liabilities . . . . . . . . . . . . . . 7,118 8,126Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,073 72,242Total stockholders' equity . . . . . . . . . . . . . . . . . . . 39,691 35,707Total liabilities and stockholders' equity . . . . . . . . . 106,764$ 107,949$

Total consumer products debt . . . . . . . . . . . . . . . . 20,302$ 21,919$Debt/equity ratio - consumer products . . . . . . . . . . 0.51 0.61Total debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,611$ 23,933$Total debt/equity ratio . . . . . . . . . . . . . . . . . . . . . 0.54 0.67

24

This is an Intelligent Financial Statement by CoreFiling. The Intelligent Financial Statement embeds XBRL financial data in aviewable and printable document. By moving your mouse over the displayed data, pop-up CoreFiling TagTips will show you howthe data is internally expressed as XBRL. (Please note that TagTips require Adobe Reader 7.0 or later.) To obtain the embedded XBRL report and any XBRL extension taxonomies, double-click or right-click the paperclip icon or iconsbelow. For more information on the Intelligent Financial Statement or XBRL, please see http://www.corefiling.com.

XBRL report mo-20060630.xml

XBRL taxonomy schema mo-20060630.xsd

XBRL taxonomylinkbase mo-20060630_pre.xml

XBRL taxonomylinkbase mo-20060630_cal.xml

XBRL taxonomylinkbase mo-20060630_lab.xml

25

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The XBRL 2.1 instance document.Double click to open, or right click for menu.

Condensed Statement Earnings link:presentationLink link:calculationLink Revenue By Business Segment link:presentationLink Revenue By Business Segment link:presentationLink Operating Companies Income By Business Segment link:presentationLink Balance Sheets link:presentationLink link:calculationLink Net Earnings link:presentationLink Diluted Earnings Per Share link:presentationLink

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Accrued Settlement Charges Acquired Businesses, Operating Companies Income Acquired Businesses, Net Revenue Acquired Businesses, Operating Revenue Asset Impairment, Exit and Implementation Costs, Net Minority Interest Impact Balance Sheet Basic Earnings Per Share, Continuing Operations Change in Shares, Continuing Earnings Change in Tax Rate, Continuing Earnings Asset Impairment and Exit Costs, Operating Companies Income Operating Expenses, Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets, Total Consumer Products Liabilities, Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs, Corporate Asset Impairment and Exit Costs, Companies Asset Impairment and Exit Costs, Continuing Earnings General Expenses, Corporate Operating Expenses, Corporate Currency, Operating Companies Income Currency, Continuing Earnings Currency, Net Revenues Diluted Earnings Per Share, Continuing Operations Diluted Earnings Per Share, Discontinued Operations Divested Businesses, Net Revenue Divested Businesses, Operating Companies Income Excise Taxes on Products Financial Services Assets, Total Financial Services Liabilities, Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges, Continuing Earnings Implementation Costs, Operating Companies Income Implementation, Net Revenue Income/(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation, Total Earnings from continuing operations before income taxes, minority interest, and equity earnings, net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment, Net Minority Interest Impact Investment Impairment, Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge, Operating Companies Income Long Term Deferred Income Taxes Liability Losses (Gains) on Sales of Businesses, Net Losses on Sales of Businesses, Operating Companies Income Loss on Sales of Businesses, Net of Minority Interest Impact Loss on Sales of Businesses, Net of Minority Interest Impact, Diluted EPS Gains on Sales of Businesses, Operating Companies Income Gain on Sales of Businesses, Net of Minority Interest Impact Gain on Sales of Businesses, Net of Minority Interest Impact, Diluted EPS Marketing, Administration and Research Costs Minority Interest in Earnings from Continuing Operations, and Equity Earnings, Net Operations, Operating Companies Income Operations, Continuing Earnings Operations, Net Revenues Other Intangible Assets Excluding Goodwill, Net Provision for Airline Industry Exposure Provision Airline Industry Exposure, Continuing Earnings Quota Buy Out Revenue Reconciliation Tax Items, Net Minority Interest Impact Tobacco Pool Companies Operating Profit Reconciliation, Total Basic Earnings Per Share, Discontinued Operations Asset Impairment, Exit and Implementation Costs, Net Minority Interest Impact, Diluted EPS Change in Shares, Continuing Earnings, Diluted EPS Change in Tax rate, Continuing Earnings, Diluted EPS Total consumer products debt Asset Impairment and Exit Costs, Continuing Earnings, Diluted EPS Currency, Continuing Earnings, Diluted EPS Debt/equity ratio - consumer products Total debt/equity ratio Total debt Domestic Tobacco Headquarters Relocation Charges, Continuing Earnings, Diluted EPS Income/ (Loss) from Continuing Operations After Minority Interest, Diluted EPS Income/ (Loss) Continuing Operations After Minority Interest, Reconciliation Total, Diluted EPS Income/ (Loss) Discontinued Operations, Net Tax Effect, Diluted EPS Italian Antitrust Charge, Diluted EPS Net Income, Diluted EPS Operations, Continuing Earnings, Diluted EPS Tax Items, Net Minority Interest Impact, Diluted EPS Currency Decreased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges, Operating Companies Income Italian Antitrust Charge, Continuing Earnings Provision for Airline Industry Exposure, Operating Companies Income Provision for airline industry exposure, Diluted EPS


Condensed Statements of Earnings For the Quarters Ended June 30 (Unaudited) - Schedule 1Net revenuesCost of salesExcise taxes on products (*)Gross profitMarketing, administration and research costsDomestic tobacco headquarters relocation chargesAsset impairment and exit costsLosses on sales of businesses, netProvision for airline industry exposureOperating companies incomeAmortization of intangiblesGeneral corporate expensesAsset impairment and exit costsOperating incomeInterest and other debt expense, netEarnings from continuing operations before income taxes, minority interest, and equity earnings, netProvision for income taxesEarnings from continuing operations before minority interest and equity earnings, netMinority interest in earnings from continuing operations, and equity earnings, netEarnings from continuing operationsLoss from discontinued operations, net of income taxes and minority interest (**)Net earningsPer share data (***):Basic earnings per share from continuing operationsBasic earnings per share from discontinued operationsBasic earnings per shareDiluted earnings per share from continuing operationsDiluted earnings per share from discontinued operationsDiluted earnings per shareWeighted average number of shares outstanding - BasicWeighted average number of shares outstanding - Diluted(*) The detail of excise taxes on products sold is as follows:Domestic tobaccoInternational tobaccoTotal excise taxesCurrency decreased international tobacco excise taxes by(**) Discontinued operations in 2005 includes $(255) from loss on sale, and $10 of earnings, net of minority interest impact(***) Basic and diluted earnings per share are computed for each of the periods presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.

Selected Financial Data by Business Segment For the Quarters Ended June 30, (Unaudited) - Schedule 22006 Net Revenues2005 Net RevenuesReconciliation:2005 Net RevenuesDivested businesses - 2005Divested businesses - 2006Implementation - 2005Implementation - 2006Acquired businessesCurrencyOperations2006 Net Revenues

Selected Financial Data by Business Segment For the Quarters Ended June 30, (Unaudited) - Schedule 32006 Operating Companies Income2005 Operating Companies IncomeReconciliation:2005 Operating Companies IncomeDivested businesses - 2005Domestic tobacco headquarters relocation charges - 2005Asset impairment and exit costs - 2005Losses on sales of businesses - 2005Implementation costs - 2005Divested businesses - 2006Asset impairment and exit costs - 2006Losses on sales of businesses - 2006Implementation costs - 2006Provision for airline industry exposure - 2006Acquired businessesCurrencyOperations2006 Operating Companies Income

Condensed Statements of Earnings For the Six Months Ended June 30, (Unaudited) - Schedule 4Net revenuesCost of salesExcise taxes on products (*)Gross profitMarketing, administration and research costsDomestic tobacco headquarters relocation chargesItalian antitrust chargeAsset impairment and exit costsLosses (gains) on sales of businesses, netProvision for airline industry exposureOperating companies incomeAmortization of intangiblesGeneral corporate expensesAsset impairment and exit costsOperating incomeInterest and other debt expense, netEarnings from continuing operations before income taxes, minority interest, and equity earnings, netProvision for income taxesEarnings from continuing operations before minority interest and equity earnings, netMinority interest in earnings from continuing operations, and equity earnings, netEarnings from continuing operationsLoss from discontinued operations, net of income taxes and minority interest (**)Net earningsPer share data (***):Basic earnings per share from continuing operationsBasic earnings per share from discontinued operationsBasic earnings per shareDiluted earnings per share from continuing operationsDiluted earnings per share from discontinued operationsDiluted earnings per shareWeighted average number of shares outstanding - BasicWeighted average number of shares outstanding - Diluted(*) The detail of excise taxes on products sold is as follows:Domestic tobaccoInternational tobaccoTotal excise taxesCurrency decreased international tobacco excise taxes by(**) Discontinued operations in 2005 includes $(255) from loss on sale, and $22 of earnings, net of minority interest impact(***) Basic and diluted earnings per share are computed for each of the periods presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.

Selected Financial Data by Business Segment For the Six Months Ended June 30 (Unaudited) - Schedule 52006 Net Revenues2005 Net RevenuesReconciliation:2005 Net RevenuesDivested businesses - 2005Divested businesses - 2006Implementation - 2005Implementation - 2006Acquired businessesCurrencyOperations2006 Net Revenues

Selected Financial Data by Business Segment For the Six Months Ended June 30 (Unaudited) - Schedule 62006 Operating Companies Income2005 Operating Companies IncomeReconciliation:2005 Operating Companies IncomeDivested businesses - 2005Domestic tobacco headquarters relocation charges - 2005Asset impairment and exit costs - 2005Losses (gains) on sales of businesses - 2005Implementation costs - 2005Divested businesses - 2006Italian antitrust charge - 2006Asset impairment and exit costs - 2006Losses on sales of businesses - 2006Implementation costs - 2006Provision for airline industry exposure - 2006Acquired businessesCurrencyOperations2006 Operating Companies Income

Net Earnings For the Quarters Ended June 30 (Unaudited) - Schedule 72006 Continuing Earnings2005 Continuing EarningsReconciliation:2005 Continuing Earnings2005 Domestic tobacco headquarters relocation charges2005 Asset impairment, exit and implementation costs, net of minority interest impact2005 Losses on sales of businesses, net of minority interest impact2005 Corporate asset impairment and exit costs2005 Tax items, net of minority interest impact2006 Asset impairment, exit and implementation costs, net of minority interest impact2006 Losses on sales of businesses, net of minority interest impact2006 Corporate asset impairment and exit costs2006 Provision for airline industry exposure2006 Tax items, net of minority interest impactCurrencyChange in sharesChange in tax rateOperations2006 Continuing Earnings2006 Discontinued Earnings2006 Net Earnings

Diluted Earnings Per Share For the Quarters Ended June 30 (Unaudited) - Schedule 72006 Continuing Earnings2005 Continuing EarningsReconciliation:2005 Continuing Earnings2005 Domestic tobacco headquarters relocation charges2005 Asset impairment, exit and implementation costs, net of minority interest impact2005 Losses on sales of businesses, net of minority interest impact2005 Corporate asset impairment and exit costs2005 Tax items, net of minority interest impact2006 Asset impairment, exit and implementation costs, net of minority interest impact2006 Losses on sales of businesses, net of minority interest impact2006 Corporate asset impairment and exit costs2006 Provision for airline industry exposure2006 Tax items, net of minority interest impactCurrencyChange in sharesChange in tax rateOperations2006 Continuing Earnings2006 Discontinued Earnings2006 Net Earnings(*) Basic and diluted earnings per share are computed for each of the periods presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.

Net Earnings For the Six Months Ended June 30 (Unaudited) - Schedule 82006 Continuing Earnings2005 Continuing EarningsReconciliation:2005 Continuing Earnings2005 Domestic tobacco headquarters relocation charges2005 Asset impairment, exit and implementation costs, net of minority interest impact2005 Gains on sales of businesses, net of minority interest impact2005 Corporate asset impairment and exit costs2005 Tax items, net of minority interest impact2006 Italian antitrust charge2006 Asset impairment, exit and implementation costs, net of minority interest impact2006 Losses on sales of businesses, net of minority interest impact2006 Corporate asset impairment and exit costs2006 Provision for airline industry exposure2006 Tax items, net of minority interest impactCurrencyChange in sharesChange in tax rateOperations2006 Continuing Earnings2006 Discontinued Earnings2006 Net Earnings

Diluted Earnings Per Share For the Six Months Ended June 30 (Unaudited) - Schedule 82006 Continuing Earnings2005 Continuing EarningsReconciliation:2005 Continuing Earnings2005 Domestic tobacco headquarters relocation charges2005 Asset impairment, exit and implementation costs, net of minority interest impact2005 Gains on sales of businesses, net of minority interest impact2005 Corporate asset impairment and exit costs2005 Tax items, net of minority interest impact2006 Italian antitrust charge2006 Asset impairment, exit and implementation costs, net of minority interest impact2006 Loss on sales of businesses, net of minority interest impact2006 Corporate asset impairment and exit costs2006 Provision for airline industry exposure2006 Tax items, net of minority interest impactCurrencyChange in sharesChange in tax rateOperations2006 Continuing Earnings2006 Discontinued Earnings2006 Net Earnings(*) Basic and diluted earnings per share are computed for each of the periods presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.

Condensed Balance Sheets (Unaudited) - Schedule 9AssetsCash and cash equivalentsAll other current assetsProperty, plant and equipment, netGoodwillOther intangible assets, netOther assetsTotal consumer products assetsTotal financial services assetsTotal assetsLiabilities and Stockholders' EquityShort-term borrowingsCurrent portion of long-term debtAccrued settlement chargesAll other current liabilitiesLong-term debtDeferred income taxesOther long-term liabilitiesTotal consumer products liabilitiesTotal financial services liabilitiesTotal liabilitiesTotal stockholders' equityTotal liabilities and stockholders' equityTotal consumer products debtDebt/equity ratio - consumer productsTotal debtTotal debt/equity ratio

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altria group Quarter Results 2006 2nd

Economy & Finance

Transcript of altria group Quarter Results 2006 2nd