Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Philip Morris Profit Tops Estimates After Price Increases

Philip Morris Profit Tops Estimates After Price Increases
Philip Morris International Inc. increased sales in Asia, making up for the impact of strength in the U.S. dollar that hurt sales generated abroad. Photographer: Daniel Acker/Bloomberg

April 19 (Bloomberg) -- Philip Morris International Inc., the world’s largest publicly traded tobacco company, reported first-quarter profit that beat analysts’ estimates, helped by an increase in pricing.

Net income rose 13 percent to $2.16 billion, or $1.25 a share, from $1.92 billion, or $1.06, a year earlier, the New York-based company said today in a statement. Analysts projected $1.19, the average of 16 estimates compiled by Bloomberg.

Chief Executive Officer Louis Camilleri boosted shipments of the company’s 10 biggest cigarette brands, including Marlboro, while price increases added $369 million to sales. The company increased sales in Asia, making up for the impact of strength in the U.S. dollar that hurt sales generated abroad.

“The volume gains were great, with strength across most brands and most regions,” Jack Russo, an analyst at Edward Jones & Co., said today in an e-mail. “The core underlying business remains real strong,” said Russo, who recommends buying the shares.

Philip Morris reduced its full-year earnings forecast because of the stronger U.S. dollar. Profit will be $5.20 to $5.30 share, down from a February projection of $5.25 to $5.35.

Excluding excise taxes, total sales in the first quarter rose 9.7 percent to $7.4 billion, beating the $7.22 billion average of analysts’ estimates.

Philip Morris, which generates all its revenue outside the U.S., fell 1.1 percent to $86.75 at the close in New York. The shares have gained 11 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: Kevin Orland at korland@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.