Philip Morris International investors recently faced particular difficulties due to difficult situation on global tobacco industry. Entering the recent quarter, investors got anxious when Philip Morris reduced its profit forecast for the full year. Company told that the major causes for it are currency upswings and cigarette volumes drop which resulted in factory closures.
In July the company’s report helped to overcome these fears. However, today the maker of Marlboro cigarettes faces a great challenge, because these days conditions for tobacco companies are changing worldwide, but Philip Morris is quite optimistic about its future. Experts say that the company will harly repeat the success it had in the mid of 20th century.
Philip Morris reported an income of $7.8 billion, that was reduced by 1.5% in comparison with same period in 2013. Investors expected that the decline will be greater, and say that strong U.S. dollar ensured this small decline. In spite of currency effects, Philip Morris managed to increase cigarettes sales by 4.5%, and namely this helped to overcome a volume decline. Not the last role here played cigarettes price increase.
On earnings, Philip Morris also faced a significant decline, with profit margin of $1.85 billion and this represents a 13% decline from 2013. Earnings per share dropped by 10% to $1.17. On an adjusted basis, the tobacco company managed to increase per-share income by 8.5%. Experts expected $1.24 per share but the company reported $1.41 per share.