Tobacco giant Philip Morris International Inc. (PM), Thursday reported an increase in fourth quarter profit, as sales improved despite continued weakness in Europe. Revenues grew in all the regions where Philip Morris supplies, except Europe.
Philip Morris, the owner of Marlboro, Parliament and Virginia Slims cigarette brands, said its fourth-quarter cigarette shipment volume increased 2.9 percent, excluding acquisitions.
Revenue dropped 6.6 percent in the European Union and shipment volume declined 5.7 percent, primarily due to France and southern Europe.
Eastern Europe, Middle East & Africa increased revenue by 8.5 percent and volume grew 7.1 percent helped by Egypt and Turkey. Asia sales rose 6 percent and volume advanced 5.7 percent, led by Indonesia and the Philippines. Latin America and Canada rose 7.3 percent while shipment rose 1.1 percent mainly due to Mexico.
New York-based Philip Morris' fourth-quarter profit improved to $2.10 billion or $1.25 per share from $1.89 billion or $1.08 per share last year.
Adjusted earnings for the quarter rose to $1.24 per share from $1.10 per share last year. Adjusted earnings, excluding currency impact, for the quarter were $1.28 per share. Analysts polled by Thomson Reuters expected earnings of $1.22 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenues for the quarter grew to $19.74 billion from $18.88 billion last year. Revenues, excluding excise taxes, rose 2.8 percent to $7.89 billion. Analysts estimated revenues of $8.03 billion for the quarter.
Looking forward, the company expects full year earnings in the range of $5.68 to $5.78 per share. Analysts currently expect earnings of $5.79 per share for the full year.
PMI is currently trading at $89.06, up $1.37 or 1.56%, on the NYSE.
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