Altria rides strong profits in Q1

Altria Group released its quarterly earnings report Wednesday, showing an 18.3 percent increase in first quarter profits.

Net revenue rose 8.7 percent, to $23.6 billion. Altria owns the Philip Morris tobacco group as well as 85 percent of Kraft Foods.

Philip Morris showed strong income growth in both its United States and international divisions. This included a 13.1 percent increase in Philip Morris International’s income.

Kraft Foods first-quarter earnings report showed that they had a 27 percent increase in earnings, aided by receipt of a tax benefit.

Both Philip Morris and Altria are defendants in the U.S. government’s civil racketeering action against the tobacco industry, which could signal problems for both companies.

However a federal appeals court ruling handed down in February that favored the tobacco industry, and many experts think a settlement will be reached despite a government appeal to February’s ruling.

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