Firms Say Settlement Could Hurt Results

The two biggest U.S. cigarette companies said settling their legal fights could significantly cut into sales and profits for years to come, detailing for the first time the price they would have to pay for peace with anti-tobacco forces. Philip Morris Cos. and RJR Nabisco Holdings Corp. would make major concessions in how they advertise and sell cigarettes and would pay billions of dollars to settle pending and future lawsuits, the companies said in quarterly regulatory filings. The disclosure of a settlement’s potential financial impact comes as the companies and anti-tobacco groups are scheduled to resume talks next week. Cigarette makers are discussing paying as much as $375 billion for 25 years and agreeing to tighter government control and ad restrictions to gain relief from lawsuits.