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NewsBreak: Altria Writes Down Juul Stake by $4.5 Billion

Published 10/31/2019, 07:36 AM
Updated 10/31/2019, 07:43 AM
© Reuters.

Investing.com -- Altria Group (NYSE:MO) said Thursday it will write down the value of its 35% stake in vaping products maker Juul by $4.5 billion, less than a year after paying $12.8 billion for it.

  • "While there was no single determinative event or factor, Altria (NYSE:MO) considered impairment indicators in totality, including: increased likelihood of U.S. Food & Drug Administration (FDA) action to remove flavored e-vapor products from the market pending a market authorization decision, various e-vapor bans put in place by certain cities and states in the U.S. and in certain international markets, and other factors," the company said in its quarterly earnings release.
  • The company said its traditional business performed well in the quarter and it upheld its full-year guidance for adjusted earnings growth of 5% to 7%. It said it expects earnings per share to grow by between 5% and 8% each year through 2022, paying out around 80% of that in dividends.
  • Shares of Altria (NYSE:MO) rose 1.6% in premarket trade.

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