Altria 1Q net rises on higher prices, cost cuts

RICHMOND, Va. (AP) — Marlboro maker Altria Group Inc.'s first-quarter net income increased 15 percent in on lower costs and higher prices, even though it sold fewer cigarettes.

The owner of the nation's biggest cigarette maker, Philip Morris USA, said Wednesday that it earned $937 million, or 45 cents per share, for the period ended March 31. That's up from $813 million, or 39 cents per share, last year.

Excluding one-time items, earnings were 44 cents per share, matching analyst estimates.

Tobacco cos. fire back on gov't-proposed ads

America's largest cigarette manufacturers have said the Justice Department's proposed corrective statements about smoking's dangers are inflammatory and inaccurate and violate guidelines set by the court overseeing the lawsuit.

The tobacco companies, including Philip Morris USA, maker of top-selling Marlboro cigarettes, also asked a US district judge to toss out the 12-year-old lawsuit, saying the Food and Drug Administration's authority over the industry makes the court's involvement unnecessary.

Last week, the Justice Department released 14 "corrective statements" that it says the companies should be required to make as part of the lawsuit. It wants the companies to admit that they lied to the public and would force the industry to pay for an advertising campaign of self-criticism.