Summary
Philip Morris International Inc. (PM) reported its financial results for the six months ended June 30, 2009. The company experienced a decrease in Net Revenues and Net Earnings attributable to PMI compared to the same period in the prior year. This was largely driven by unfavorable currency exchange rates, particularly the strengthening U.S. dollar against key international currencies. Despite these headwinds, the company saw an increase in Operating Companies Income due to higher pricing and strategic acquisitions, particularly the Rothmans acquisition in Canada. Key financial metrics indicate a mixed performance. While Net Revenues saw a decline, partly due to excise taxes and currency impacts, operating income benefited from price increases and acquisitions, partially offset by currency headwinds and increased interest expenses. The company maintained its share repurchase program, indicating confidence in its financial position and commitment to returning capital to shareholders. Management has also raised its full-year EPS forecast, signaling optimism for the remainder of 2009.
Financial Highlights
51 data points| Revenue | $15.21B |
| Cost of Revenue | $2.19B |
| Gross Profit | $3.95B |
| Operating Income | $2.43B |
| Net Income | $1.55B |
| EPS (Basic) | $0.79 |
| EPS (Diluted) | $0.79 |
| Shares Outstanding (Basic) | 1.96B |
| Shares Outstanding (Diluted) | 1.96B |
Key Highlights
- 1Net revenues for the six months ended June 30, 2009, decreased by 8.2% to $28.5 billion, primarily due to unfavorable currency movements and lower volume/mix, partially offset by net price increases and acquisitions.
- 2Net earnings attributable to PMI decreased by 10.2% to $3.0 billion for the six months ended June 30, 2009, compared to $3.4 billion in the prior year.
- 3Diluted Earnings Per Share (EPS) declined to $1.52 for the six months ended June 30, 2009, down from $1.59 in the same period of 2008.
- 4The company repurchased 71.4 million shares of common stock for $2.7 billion in the first six months of 2009 as part of its ongoing $13.0 billion share repurchase program.
- 5Operating income for the six months ended June 30, 2009, decreased by 7.5% to $4.7 billion, impacted by unfavorable currency, lower volume/mix, and higher interest expenses.
- 6A significant charge of $135 million (pre-tax) was recorded in the second quarter of 2009 related to the Colombian Investment and Cooperation Agreement.
- 7The company raised its full-year 2009 diluted EPS forecast to a range of $3.10 to $3.20.