Kraft Foods’ recently issued first-quarter earnings report showed a 27 percent increase in earnings, aided by receipt of a tax benefit.

Philip Morris tobacco group also showed strong income growth both in the United States and internationally, including a 13.1 increase in the income of Philip Morris International.

This despite the fact that they are embroiled as a defendant in a civil racketeering case brought against the tobacco industry by the U.S. government.

However, a ruling in federal appeals court in February favored the tobacco industry, convincing experts that despite an appeal to the ruling filed by the government a settlement in the suit will be reached.

All this combined to allow Altria Group, which owns Philip Morris as well as 85 percent of Kraft Foods, to issue a quarterly earnings report on Wednesday that showed an 18.3 percent increase in Altria’s first quarter profits.

Altria is also a defendant in the government’s action against the tobacco industry.