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Companies and Brands

Altria: The Day the Tobacco Plant Closed (MO)

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By Douglas A. McIntyre Published
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Altria Group, Inc. (MO-NYSE) has announced a streamlining of operations to cut costs in a move that will result in a North Carolina manufacturing plant being closed by 2010.  The Cabarrus, North Carolina plant that employs 2,500 workers will be closed and manufacturing will be consolidated at its Richmond, Virginia plant.  Much of the production for Philip Morris International will further be moved to Europe, eliminating much of the shipping/freight costs.

The company expects savings to start in 2008, and total cost savings by 2011 are expected to be in the $335 million per year.  Of the savings, $179 million will go to Philip Morris International and $156 million will go to Philip Morris USA.  It sees charges of $325 million, or $0.10 off of EPS.  The charges will be mostly taken in Q2 and about $50 million will come later in 2007. 

It sounds like if you are a real estate agent around Cabarrus, North Carolina that you will probably have a lot more housing supply to sell. 

Jon C. Ogg
June 26, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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