Tobacco has long been one of the United States' most profitable industries. Every day, nearly 1.5 billion cigarettes -- six for every man, woman and child in the United States -- roll off the assembly line at American tobacco companies. Domestic sales exceed $45 billion, and exports of tobacco and cigarettes add another $7 billion. From farms to factories to retail venues, the U.S. tobacco industry employs more than 650,000 people.

And despite ongoing legal problems, the tobacco industry -- if not its public image -- remains healthy. Around the globe, companies and government monopolies sell more than 5 trillion cigarettes a year. Analysts estimate that while industry leader Philip Morris spends $600 million a year on litigation costs, in 1996 it made $6.3 billion worldwide on revenues of $69.2 billion.

A drop in the bucket?

Despite the multi-billion dollar June 20th settlement, tobacco companies are unlikely to suffer a mortal blow. Experts expect settlement costs to be passed on to smokers in the form of higher cigarette prices.

A recent analysis in Fortune Magazine concluded that no matter what the terms of a settlement, a tobacco giant like Philip Morris would remain a winning proposition. Even if its litigation costs more than tripled, shareholders would benefit. And, according to a mutual fund manager interviewed by Fortune, if the settlement rules out futher litigation, Philip Morris would be worth $250 billion more than its current market value. This means the stock price would probably rise even if a settlement costs the company $5 billion a year for the next 20 years.

The Associated Press and Time Magazine contributed to this report.