News Column

Philip Morris International 2Q profit falls, stung by unfavourable currency exchange rates

July 17, 2014

The Associated Press



NEW YORK, N.Y. - Philip Morris International's second-quarter profit declined 13 per cent, stung by foreign exchange rates for the U.S. dollar.

But its adjusted profit and revenue topped Wall Street's view. Its shares edged up in premarket trading Thursday.

The seller of Marlboro cigarettes and other brands outside the U.S. earned $1.85 billion, or $1.17 per share, for the period ended June 30. A year earlier it earned $2.12 billion, or $1.30 per share.

Removing certain items, earnings were $1.41 per share. Analyst expected $1.24 per share.

Revenue excluding excise taxes was $7.8 billion, down 1.5 per cent from $7.92 billion a year earlier. Wall Street predicted $7.52 billion.

Because it does all its business overseas, the company has to navigate changes in currency values. A stronger dollar cuts into revenue generated overseas when it's translated back into dollars.

Philip Morris International Inc. is based in New York and Switzerland.


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Source: Canadian Press DataFile


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