PHILIP MORRIS (PM)
Cigarette Maker Turns In Flat Quarter
Philip Morris International Inc. (PM) reported no earnings growth in the latest quarter as shipment volume declined in its geographic segments except Europe, where shipments increased slightly.
Philip Morris (PM), which sells the leading Marlboro brand and others internationally, had seen its cigarette volume grow amid an improving European economy. However, in May, the European Union's highest court rejected a challenge by Philip Morris(PM) and other tobacco companies against a tough new antismoking law.
For the period ended in September, cigarette volume fell 5.4% to 207.1 billion units. Shipment volume declined by 8% in Latin America and Canada, slid 9% in Asia, and fell 5.4% in the Eastern Europe, Middle East and Africa unit. Volume edged up 0.4% in the European Union, where the company gets about one-third of its revenue.
Over all, Philip Morris(PM) reported a profit of $1.94 billion, or $1.25 a share, flat compared with a year ago. Analysts had forecast $1.23 a share in earnings, according to Thomson Reuters. Revenue excluding excise taxes edged up 0.8% to $6.98 billion, as analysts anticipated $6.97 billion.
--Joshua Jamerson
