Philip Morris International Raises Adjusted Profit Forecast
October 20 2020 - 7:57AM
Dow Jones News
By Micah Maidenberg
Philip Morris International Inc. raised its profit forecast for
the year even as the Covid-19 pandemic continued to weigh on
cigarette shipments in key end markets.
The tobacco company focused on markets outside of the U.S. on
Tuesday reported quarterly profit rose to $2.31 billion, or $1.48 a
share, from close to $1.9 billion, or $1.22 a share, the year
earlier.
After adjustments, the company reported earnings of $1.42 a
share, 6 cents more than what analysts were looking for on that
metric.
Third-quarter sales dropped to $7.45 billion from $7.64 billion.
Analysts polled by FactSet predicted $7.28 billion for the latest
period.
Like other companies selling consumer products, Philip Morris
International faced a drop off in demand after the spread of the
coronavirus shut down economies around the world earlier this year
and kept people at home.
Shipment volumes for cigarette and heated-tobacco products fell
14.5% in the second quarter. For the third quarter, those volumes
fell again, but by a lesser rate of 7.6%.
Cigarette shipments in the third quarter were down 9.8%. The
company continued to face challenges in Indonesia and in its
duty-free business, Chief Executive André Calantzopoulos said.
Philip Morris also said it now believes that it will report
adjusted earnings, excluding currency fluctuations, of $5.37 to
$5.42 a share for 2020, representing comparable growth of 5% to 6%
versus last year.
Better-than-expected volumes in the third quarter, especially in
the European Union and in Indonesia, helped to support the stronger
forecast, the company said.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 20, 2020 07:42 ET (11:42 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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