Philip Morris International Inc. Quarterly Report for Q3 Ended Sep 30, 2008

Summary

Philip Morris International Inc. (PM) reported strong performance for the nine months and third quarter ended September 30, 2008, driven by favorable currency movements and net price increases across its global segments. Net revenues for the nine months rose to $49.7 billion, a 19.8% increase year-over-year, while net earnings reached $5.6 billion. The company also saw significant growth in operating income, up 21.5% for the nine-month period, demonstrating effective cost management and pricing strategies. The company completed the significant acquisition of Rothmans Inc. in Canada during the quarter, further expanding its international footprint. Additionally, PMI continued its aggressive share repurchase program, highlighting a commitment to returning value to shareholders. While facing a challenging regulatory and tax environment globally, PMI's diversified geographic presence and strong brand portfolio appear to be enabling resilient performance.

Key Highlights

• 1Net revenues increased by 19.8% to $49.7 billion for the nine months ended September 30, 2008, compared to the prior year.
• 2Net earnings for the nine-month period grew to $5.6 billion, a 21.2% increase year-over-year.
• 3Operating income saw a significant rise of 21.5% to $8.3 billion for the first nine months of 2008.
• 4The company completed the acquisition of Rothmans Inc. in Canada during the third quarter, adding to its international market presence.
• 5PMI continued its share repurchase program, repurchasing 44.8 million shares for $2.4 billion in the third quarter, and 86.2 million shares for $4.5 billion year-to-date.
• 6The company reaffirmed its full-year 2008 diluted EPS forecast, projecting growth of 19% to 21%.
• 7Significant revenue growth was observed across all segments, with notable contributions from favorable currency movements and net price increases.

Frequently Asked Questions