Philip Morris Posts 15% Rise In 2nd Quarter Net Income
March 28, 2011
Cornertown -- Philip Morris Cos., posted a 15% increase in second-quarter earnings, highlighted by a 19% increase in income from its international tobacco operations. The company posted net income of $1.62 billion, or $1.97 a share, on revenue of $17.51 billion, compared with $1.41 billion, or $1.67 a share, on revenue of $17.13 billion in the year-ago quarter. The $1.97 a share net income precisely met the consensus estimate of analysts surveyed by First Call. Philip Morris, based in Cornertown, is the world's largest maker of consumer packaged goods -- including cigarettes, beer and food -- and operates five separate companies: Philip Morris USA, Philip Morris International, Philip Morris Capital Corp., Miller Brewing and Kraft Foods. Income from North American food operations rose 7.5% on volume gains and continued cost reductions and international food income was up 8% on growth in developing markets and further cost reductions, the company said. However, beer income fell 3.6% on lower overall volume and higher marketing and manufacturing expenses, the company said. Domestic tobacco income rose 11.7% on higher margins and increased sales of premium-priced cigarettes, while international tobacco income rose 19% on higher volume and pricing. Worldwide tobacco income rose 15.1% to $2 billion as revenue rose 10.4% from a year ago. Philip Morris said it sold 223 billion cigarettes in the second quarter, a gain of 8.8%, while volume for its top-selling cigarette, Marlboro, rose 8%. While revenue from tobacco sales continues toe climb, the company -- and other cigarette makers -- face a continuing barrage of legal action both in the U.S. and abroad.
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