Altria units set post-spinoff long-term targets

By Brad Dorfman

CHICAGO (Reuters) - Altria Group Inc (MO.N: Quote, Profile, Research, Stock Buzz) executives set financial goals for the international and U.S. businesses of the soon-to-be split up company, with Philip Morris International seeing greater earnings growth.

The businesses also forecast $1 billion each in eventual cost savings and stood by prior 2008 earnings forecasts.

"The cost savings were very good news, but just modestly better than the mumblings of what the Street was looking for," said Charles Norton, portfolio manager of Vice Fund VICEX.O. Altria is the largest holding in the fund, with 213,000 shares as of January 31, Norton said.

Altria shares were up 59 cents, or 0.8 percent, at $75.33 on Tuesday afternoon on the New York Stock Exchange.

Philip Morris International expects earnings per share to rise 10 percent to 12 percent annually in the long-term after the cigarette company gets spun off from Altria later this month, it said on Tuesday.

At the same time, Altria said its remaining businesses -- Marlboro cigarette maker Philip Morris USA and a 28.6 percent stake in beer maker SABMiller Plc (SAB.L: Quote, Profile, Research, Stock Buzz) -- should post long-term annual earnings per share growth of 8 percent to 10 percent.

The forecasts came at an analysts' meeting where executives disclosed plans for the companies after the March 28 spinoff of Philip Morris International.

The remaining Altria business should provide annual shareholder returns of more than 12 percent, including its dividend, the company said.