PM Philip Morris International Inc

By Dave Sebastian

Philip Morris International Inc. raised its earnings outlook for the year as it sees better performance driven by IQOS, a hand-held device that heats but doesn't burn tobacco, particularly in the European Union and Japan.

The tobacco company on Tuesday said it expects 2021 earnings of $5.93 a share to $6.03 a share, representing an increase of about 15% to 17% over 2020. It previously guided for earnings of $5.90 a share to $6 a share.

The company said it sees 2021 adjusted earnings of $5.95 a share to $6.05 a share, or $5.75 a share to $5.85 a share excluding currency.

The outlook reflects a currency benefit of about 20 cents a share and asset impairment and exit costs of 2 cents a share, the company said.

For the second quarter, the company said it sees earnings of $1.50 a share to $1.55 a share, including a currency benefit of about 4 cents a share. It expects its key markets to have largely emerged from pandemic-related restrictions in the second half of the year, the company said.

The forecast assumes a gradual improvement in operating environment, with potential volatility related to the Covid-19 pandemic and a lack of near-term recovery in the company's duty-free business given the uncertain outlook for travel, Philip Morris said.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

April 20, 2021 07:41 ET (11:41 GMT)

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