The seller of Marlboro and other brands overseas said it
earned $1.82 billion, or 99 cents per share, for the period that ended Sept.
30. That's up from $1.79 billion, or 93 cents per share, in the same period
last year.
Excluding one-time items, the company says it earned $1 per
share. Analysts expected $1.01 per share.
Revenue excluding excise taxes edged up less than 1 percent
to $6.6 billion. Analysts expected $6.98 billion.
Philip Morris International shares rose 11 cents to $57.59
in early trading Thursday.
The company also raised its full-year earnings guidance
Thursday to a range of $3.90 to $3.95 per share, on favorable currency exchange
rates, improved business performance and a lower tax rate.
When the dollar is rising, companies that sell goods
internationally and must convert revenue from foreign currencies usually take a
hit in the dollar value of that revenue. That effect is particularly strong for
Philip Morris International, because it does all its business overseas. The
effect is reversed when the dollar's value is declining, as it has recently.
“Our underlying businesses performed strongly in the third
quarter... with good share momentum across all regions,” Chief Financial
Officer Hermann Waldemer said in a conference call with investors, adding that
Marlboro is performing well and “pricing power remains strong.” Philip Morris
International, with offices in New York and in Lausanne, Switzerland, said
cigarette shipments grew 4.5 percent from last year's third quarter to 229.2
billion sticks. Especially key were large gains in Asia, including Indonesia,
Korea and Pakistan, and the favorable impact of acquiring Fortune Tobacco Co.
in the Philippines.
Shipments fell 4.6 percent in the European Union, where tax
hikes hurt as well. Volumes fell about 3 percent in Eastern Europe, the Middle
East and Africa and about 2 percent in Latin America and Canada.
Total shipments of its premium Marlboro brand fell 1.2
percent to 75.9 billion cigarettes in the quarter, while market share increased
or remained stable across the regions in which the company operates.
Smokers face tax hikes, bans, health concerns and social
stigma worldwide, but the impacts on cigarette demand are less stark outside
the United States. Philip Morris International has compensated for volume
declines by raising its prices, increasing its market share and cutting costs.
Philip Morris International is the world's second-biggest
cigarette company after the state-controlled China National Tobacco Corp.
Altria Group Inc. in Richmond, Virginia, owner of Philip Morris USA, spun off
Philip Morris International in 2008. Altria is the largest US cigarette seller.
