Altria Group, holding 78% stake in Philip Morris CR (PMCR) yesterday report 1Q06 figures. The report mentioned the Czech Republic that the total market was flat while PMCR shipments declined by 14.6% y/y and the company lost a market share. The decline of PMCR’s shipments and a fall in market share was expected but not as severe. It seems that the pace of consumers shifting to lower-price cigarettes, where competition is increasing, following excise tax increases continues and the market conditions remain unfavorable for PMCR. We view the news negatively for the stock.