The FINANCIAL — Philip Morris International Inc. on July 16 reported better-than-expected profit and revenue in its second quarter, though cigarette volumes edged down and currency impacts continued to weigh, according to Nasdaq.
The company said it expects to be at the top end of its adjusted per-share earnings guidance of 9% to 11% growth for the year.
Shares of Philip Morris, up 1.5% this year, added 2% to $84.30 a share in premarket trading.
Philip Morris has been struggling with the impacts of a strong dollar and industrywide cigarette volume sluggishness.
The company has expressed optimism about volume for the year but hasn’t given specific guidance.
In the latest quarter, cigarette volume fell 1.3% to 219.8 billion units, as European volume fell 3.5% and Latin America and Canada volume fell 2.1%.
Philip Morris, which sells the leading Marlboro brand internationally, has also been trying to attract younger smokers in Europe and other markets with new packaging.
Marlboro shipments fell 1.1% in the quarter to 72.3 billion units, driven by declines in Italy and the U.K. The Lark brand posted 20.2% growth, while the Philip Morris brand saw shipments grow 13.5%.
Overall, Philip Morris reported a profit of $1.89 billion, or $1.21 a share, up from $1.85 billion, or $1.17 a share, a year earlier.
Revenue excluding excise taxes fell to $6.86 billion from $7.8 billion a year earlier.
Analysts had expected $1.13 a share in earnings and $6.73 billion in revenue, according to Thomson Reuters.
Excluding currency impacts, Philip Morris said revenue would have been up 4.5%.
Separately, Philip Morris said it has dissolved its joint venture with Swedish Match AB. The venture, formed in 2009, focused on selling smokeless tobacco products outside Scandinavia and the U.S.
Philip Morris also said it has expanded its 2013 partnership with Altria Group Inc. to include research and development of new e-vapor products. Altria will commercialize the products in the U.S. and Philip Morris will sell the products abroad.
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