Philip Morris Profit Tops Analysts’ Estimates on Sales in Russia
Philip Morris International Inc. (PM), the world’s largest publicly traded tobacco company, reported second-quarter profit that beat analysts’ estimates, spurred by demand for cigarettes in Eastern Europe.
Net income in the period ended June 30 fell 3.8 percent to $2.32 billion from $2.41 billion a year earlier, the New York- based maker of Marlboro cigarettes said today in a statement. On a per share basis, profit rose to $1.36 because the number of outstanding shares decreased. Analysts projected $1.35, the average of 16 estimates compiled by Bloomberg.
Chief Executive Officer Louis Camilleri has introduced new varieties of top-selling Marlboro cigarettes to boost demand in Russia. Shipments in Eastern Europe, Middle East and Africa rose 5.1 percent in the second quarter while total cigarette shipments excluding acquisitions slipped 1.2 percent.
“This was a touch better than our expectations thanks to a great quarter” in the Eastern European region, Rogerio Fujimori, a Credit Suisse AG analyst, wrote today in a note. He rates the shares as neutral, the equivalent of a hold recommendation.
Philip Morris rose 0.2 percent to $89.55 at 4:15 p.m. in New York. The shares have climbed 14 percent this year.
To contact the reporter on this story: Chris Burritt in Greensboro at cburritt@bloomberg.net
To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net
Philip Morris Profit Tops Analysts’ Estimates on Sales in Russia
Daniel Acker/Bloomberg
Shipments in Eastern Europe, Middle East and Africa rose 5.1 percent in the second quarter.
Shipments in Eastern Europe, Middle East and Africa rose 5.1 percent in the second quarter. Photographer: Daniel Acker/Bloomberg
June 26 (Bloomberg) -- Thilo Wrede, an analyst at Jefferies & Co., talks about the development of smokeless alternatives to cigarettes by Altria Group Inc.'s Philip Morris International unit. He talks with Adam Johnson and Trish Regan on Bloomberg Television's "Street Smart." Christopher Verrone, head of technical analysis at Strategas Research Partners, also speaks. (Source: Bloomberg)
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