Higher Price, Greater Sales Boost Philip Morris Q3 Net Income

October 20 00:00 2011

New York, October 20 (RainbowNewsLine.com) – Philip Morris International Inc., cigarette maker and seller of Marlboro and other cigarette brands overseas reported Thursday a growth of 31 percent in its third-quarter net income over higher sales and prices of its cigarettes. It also lifted the lower end of its full-year earnings forecast.

The company reported a profit of $2.38 billion, or $1.35 per share, for the period ended Sept. 30. up from $1.82 billion, or 99 cents per share, a year ago. The company said it earned $1.37 per share after adjusting for asset impairments and exit costs. Its revenue grew about 26 percent to $8.4 billion, excluding excise taxes. The expected earnings, as per analysts, were $1.24 per share on revenue of $7.54 billion.

The volume of shipment of the number of cigarettes grew 4.5 percent to 239.5 billion, as revealed by Philip Morris International. A large portion of the gains, nearly 13 percent, was from Asia especially from Indonesia, Japan and Korea and Thailand, and the favorable impact of acquiring Fortune Tobacco Co. in the Philippines.

5% growth in shipments was also reported from Eastern Europe, the Middle East and Africa but sales in the European Union fell by 3.5 percent and in Latin America and Canada by 1 percent.