Altria Group, Inc announced last week during an investor presentation that Philip Morris International expects its earnings per share to increase 10-12% annually in the long term after it is spun off from Altria on March 28 while Altria’s remaining businesses (Philip Morris USA and a 28.6% stake in SABMiller) would post long term annual earnings per share growth of 8-10%. Altria’s remaining businesses will boast annual shareholder returns of over 12% when combined with the dividend, the company said. Philip Morris USA CEO Michael Szymanczyk, who will become Altria’s CEO following the PMI spin-off, noted the strength of the Marlboro brand and growth in segments like smokeless tobacco.

Regarding corporate management structure, David Beran will become Chief Financial Officer of Altria following the spin-off.  At the newly spun-off PMI, Louis Camilleri will become Chairman/CEO, while André Calantzopoulos will become Chief Operating Officer and Hermann Waldemer will become Chief Financial Officer. 

During the March 11 investor presentation, Altria also said it plans to save as much as $2 billion annually following the spin-off of PMI, with the international unit cutting costs by $1 billion by the end of 2010 and the U.S. unit cutting expenses by $700 million by the end of 2011 on top of $300 million in cost savings achieved in 2007, reports Reuters. Altria has previously said it plans to repurchase $7.5 billion of its stock over two years beginning in April and have an initial annual dividend of $1.16 per share, while PMI will have a $13 billion share buyback program to begin in early May and pay an initial dividend of $1.84 per share.