Restructuring charges led Altria (NYSE:MO) to lower its full-year forecast.

Shareholders weren't looking forward to hearing about reduced earnings, but on a global basis, the tobacco business continues to bustle. Wednesday, the tobacco giant reported Q2 diluted EPS that was 18.6% lower than in the year-ago quarter. This decrease is primarily because of the spinoff of Kraft (NYSE:KFT) and other restructuring charges. When adjusted for these non-recurring items, the company's diluted EPS actually increased by 9.5% versus its prior-year Q2. Shares of Altria had slid 1.4% by the time the market closed on Wednesday.

When delving into the company's second-quarter release, there were some negative trends domestically, but overall, the company appears well-positioned for the long run. The most troubling news for investors was that U.S. cigarette shipment volume was 3.3% lower than the year-ago quarter. Altria is also estimating a full-year decline of 3% to 4% in total cigarette industry volume.

Shareholders can take solace in the operating results of Altria's international tobacco business, as well as new growth initiatives. Altria's international tobacco operating income increased by 4.7% year over year, primarily because of higher prices. A key highlight was that shipment volume to Asia increased by 15.9% over the year-ago quarter, helped by acquisition activity in Pakistan. The company again noted that it's still considering a split-off of Philip Morris International to increase its valuation.

Two growth initiatives that should prove beneficial are Altria's investment in Mexico and the company possibly going into the spit-free tobacco market. On Wednesday, Altria said it would spend about $1.1 billion to increase its stake in its Mexican tobacco business joint venture to 80% from 50%. And next month, Altria plans to test-market Marlboro Snus in Texas in an effort to break into the growing smokeless tobacco market. Reynolds American (NYSE:RAI) has already reaped hefty gains in this market since its acquisition of Conwood in 2006.

The U.S. cigarette market may be contracting, but once again, Altria has demonstrated its ability to focus on areas of revenue growth abroad and seek out new potential revenue streams. The fact that shares of British American Tobacco (NYSE:BTI), Imperial Tobacco Group (NYSE:ITY), and other tobacco makers continue to trade near all-time highs should lead one to realize that there is plenty of tobacco to be sold. It's only a question of where it will be sold and in which form.

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Fool contributor Billy Fisher owns shares of Altria and Reynolds American. The Fool's disclosure policy is smoke-free.