Altria is Changing its Work Stuff
As Altria group ends successfully a very strong year, Chairman Michael E. Szymanczyk declared that he will retire after the company’s annual meeting in May, 15. However more than three months ago, Altria’s Board of Directors already presented a succession plan, proposing Martin J. Barrington as a candidate for new chairman and CEO, and David R. Beran as Altria’s president. “It was a great experience to conduct the reshaping of Altria following the fulfillment of Philip Morris International spinoffs. I think that the company is in good situation and can continue to develop. Now is the time to pass the leadership to other people who will conduct the company through the following phase of development,” Szymanczyk said.
Szymanczyk entered the company 23 years ago. Within all these years he was a chairman and CEO of Altria and last years CEO of Philip Morris International. He also held a number of positions before becoming the president of the company in 1997. Before receiving approval as intrant chairman and CEO, Barrington worked as a vice chairman of Altria responsible for public affairs. He joined Altria in 1993. Shortly before joining Altria, he practiced law in private sector.
As about Beran, at present he serves as vice chairman of Altria, responsible for any business activities. He came to Altria in 1976. He also served as financial officer for Altria and Philip Morris USA. All these changes follow in footsteps of a strong performance demonstrated by Altria in the 4Q of 2011, and for the whole year in general. “Altria generated great profits for its shareholders in 2011, while undertaking several steps in order to precede creating shareholder value in the coming years. Altria increased its diluted earnings per ordinary share by 7.9%,” Szymanczyk stated in a press conference.
He also underlined that tobacco company surpassed the S&P 500 Index and generated total shareholder profit of 26.9%. Also, Altria produced shareholder value by repurchasing about $1.3 billion of its shares in 2011, thus finishing a $1.5-billion 2007 to 2011 cost reduction program and declaring a new one for its cigarette and services companies in October. As about this year, Altria estimates that its 2012 full-year reported diluted earnings per ordinary share will constitute about $2.20. At the same time 2012 full-year adjusted diluted earnings will be approximately $2.23, thus showing a significant growth of 6 % to 9 % from an adjusted base of about $2.05 in the past year.