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|ALTRIA GROUP, INC. filed this Form 8-K on 02/01/2018|
The smokeable products segment delivered strong income growth in the fourth quarter and for 2017.
Smokeable products segment net revenues declined 3.2% in the fourth quarter as lower volume was partially offset by higher pricing and lower promotional investments. For the full year, smokeable products segment net revenues declined 0.9% as lower volume and higher promotional investments were partially offset by higher pricing. Revenues net of excise taxes declined 1.0% in the quarter and increased 0.6% for the full year.
In the fourth quarter, reported OCI increased 1.7%, primarily driven by higher pricing, lower selling, general and administrative (SG&A) spending and lower promotional investments, partially offset by lower volume, higher resolution expense and settlement charges for lump sum pension payments. Adjusted OCI, which is calculated excluding the special items identified in Table 2, grew 5.7%, and adjusted OCI margins expanded 3.2 percentage points to 49.9%.
For the full year, reported OCI increased 8.2%, primarily driven by higher pricing and lower SG&A spending, partially offset by lower volume. Adjusted OCI, which is calculated excluding the special items identified in Table 2, grew 7.0%, and adjusted OCI margins expanded 3.0 percentage points to 51.2%.
1 Adjusted OCI margins are calculated as adjusted OCI divided by revenues net of excise taxes.