Philip Morris International Inc. Presents at the Morgan Stanley Global Consumer & Retail Conference; Reaffirms 2018 Full-Year...
November 13 2018 - 9:00AM
Business Wire
Regulatory News:
Philip Morris International Inc.’s (“PMI”) (NYSE: PM) Chief
Financial Officer, Martin King, addresses investors today at the
Morgan Stanley Global Consumer & Retail Conference in New
York.
The presentation and Q&A session are being webcast live at
www.pmi.com/2018morganstanley in a listen-only mode, beginning at
approximately 9:20 a.m. Eastern Time. An archived copy of the
webcast will be available on the same site until 5:00 p.m. on
Wednesday, December 12, 2018. The live audio webcast may also be
accessed on iOS or Android devices by downloading PMI’s free
Investor Relations Mobile Application at www.pmi.com/irapp.
2018 Full-Year Guidance and Impact of
U.S. Tax Reform
PMI reaffirms its 2018 full-year reported diluted earnings per
share forecast, provided with its third-quarter earnings results on
October 18, to be in a range of $4.97 to $5.02, at the then
prevailing exchange rates, representing a projected increase of
approximately 28% to 29% versus reported diluted earnings per share
of $3.88 in 2017.
Excluding an unfavorable currency impact, at the then prevailing
exchange rates, of approximately $0.12, the forecast range
represents a projected increase of approximately 8% to 9% versus
adjusted diluted earnings per share of $4.72 in 2017, calculated as
reported diluted EPS of $3.88, plus tax items of $0.84 per share
primarily related to the implementation of the Tax Cuts and Jobs
Act (the “Tax Act”).
As previously communicated, PMI recorded a provisional charge of
$1.6 billion in its 2017 income tax provision related to the Tax
Act. Any adjustments to the provisional charge will be included in
income tax expense, in accordance with Staff Accounting Bulletin
No. 118. Under currently proposed regulations and based on its 2017
U.S. federal income tax return as filed, PMI anticipates a reported
adjustment to the provisional amount to be a charge of
approximately $150 million, which would be recorded in the fourth
quarter of 2018 and reflected in the full-year reported diluted
earnings per share.
This charge will have no net impact on operating cash flows for
the year 2018, nor on PMI’s projected 2018 full-year reported
diluted EPS growth, excluding currency and any adjustment
associated with this charge, of 8% to 9% versus adjusted diluted
earnings per share of $4.72 in 2017. PMI continues to assume a 2018
full-year effective tax rate of approximately 24%.
Further regulations related to the Tax Act are expected to be
issued in 2018, and may affect the final amount to be recorded.
Therefore, this charge is not included in PMI’s 2018 full-year
guidance.
The Tax Act has significant complexity and PMI’s final tax
liability may materially differ from current estimates due to,
among other things, changes in PMI’s assumptions, guidance that may
be issued by the U.S. Treasury Department and the Internal Revenue
Service and related interpretations and clarifications of tax
law.
This forecast excludes the impact of any future acquisitions,
unanticipated asset impairment and exit cost charges, future
changes in currency exchange rates, further developments related to
the Tax Act, and any unusual events. Factors described in the
Forward-Looking and Cautionary Statements section below represent
continuing risks to these projections.
Forward-Looking and Cautionary
Statements
The presentation, related discussion and this press release
contain projections of future results and other forward-looking
statements. Achievement of future results is subject to risks,
uncertainties and inaccurate assumptions. In the event that risks
or uncertainties materialize, or underlying assumptions prove
inaccurate, actual results could vary materially from those
contained in such forward-looking statements. Pursuant to the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995, PMI is identifying important factors that, individually or
in the aggregate, could cause actual results and outcomes to differ
materially from those contained in any forward-looking statements
made by PMI.
PMI's business risks include: excise tax increases and
discriminatory tax structures; increasing marketing and regulatory
restrictions that could reduce our competitiveness, eliminate our
ability to communicate with adult consumers, or ban certain of our
products; health concerns relating to the use of tobacco products
and exposure to environmental tobacco smoke; litigation related to
tobacco use; intense competition; the effects of global and
individual country economic, regulatory and political developments,
natural disasters and conflicts; changes in adult smoker behavior;
lost revenues as a result of counterfeiting, contraband and
cross-border purchases; governmental investigations; unfavorable
currency exchange rates and currency devaluations, and limitations
on the ability to repatriate funds; adverse changes in applicable
corporate tax laws; adverse changes in the cost and quality of
tobacco and other agricultural products and raw materials; and the
integrity of its information systems and effectiveness of its data
privacy policies. PMI's future profitability may also be adversely
affected should it be unsuccessful in its attempts to produce and
commercialize reduced-risk products or if regulation or taxation do
not differentiate between such products and cigarettes; if it is
unable to successfully introduce new products, promote brand
equity, enter new markets or improve its margins through increased
prices and productivity gains; if it is unable to expand its brand
portfolio internally or through acquisitions and the development of
strategic business relationships; or if it is unable to attract and
retain the best global talent. Future results are also subject to
the lower predictability of our reduced-risk product category's
performance.
PMI is further subject to other risks detailed from time to time
in its publicly filed documents, including the Form 10-Q for the
quarter ended September 30, 2018. PMI cautions that the foregoing
list of important factors is not a complete discussion of all
potential risks and uncertainties. PMI does not undertake to update
any forward-looking statement that it may make from time to time,
except in the normal course of its public disclosure
obligations.
###
Philip Morris International: Building a Smoke-Free
Future
Philip Morris International (PMI) is leading a transformation in
the tobacco industry to create a smoke-free future and ultimately
replace cigarettes with smoke-free products to the benefit of
adults who would otherwise continue to smoke, society, the company
and its shareholders. PMI is a leading international tobacco
company engaged in the manufacture and sale of cigarettes,
smoke-free products and associated electronic devices and
accessories, and other nicotine-containing products in markets
outside the U.S. PMI is building a future on a new category of
smoke-free products that, while not risk-free, are a much better
choice than continuing to smoke. Through multidisciplinary
capabilities in product development, state-of-the-art facilities
and scientific substantiation, PMI aims to ensure that its
smoke-free products meet adult consumer preferences and rigorous
regulatory requirements. PMI's smoke-free IQOS product portfolio
includes heated tobacco and nicotine-containing vapor products. As
of September 30, 2018, PMI estimates that approximately 5.9 million
adult smokers around the world have already stopped smoking and
switched to PMI’s heated tobacco product, which is currently
available for sale in 43 markets in key cities or nationwide under
the IQOS brand. For more information, please visit www.pmi.com and www.pmiscience.com.
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Philip Morris InternationalInvestor Relations:New York:
+1 (917) 663 2233Lausanne: +41 (0)58 242 4666orMedia:Lausanne: +41
(0)58 242 4500Email: Iro.Antoniadou@pmi.com
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