Summary
Philip Morris International Inc. (PM) reported its third-quarter and nine-month results for 2009, reflecting a challenging economic environment and the continued impact of currency fluctuations. For the nine months ended September 30, 2009, net earnings attributable to PMI decreased to $4.82 billion from $5.45 billion in the prior year, with diluted EPS falling to $2.44 from $2.60. This decline was attributed to unfavorable currency impacts, higher interest expenses, and operational challenges in certain regions, partially offset by price increases and strategic acquisitions. The company continued its share repurchase program, demonstrating a commitment to returning capital to shareholders. Despite a decrease in overall cigarette volume, PM demonstrated market share gains in several key markets. The company also raised its full-year diluted EPS forecast, signaling confidence in its operational performance and strategies despite macroeconomic headwinds. Investors should note the ongoing impact of currency volatility and regulatory landscapes, particularly within the European Union and emerging markets.
Financial Highlights
52 data points| Revenue | $16.57B |
| Cost of Revenue | $2.32B |
| Gross Profit | $4.27B |
| Operating Income | $2.85B |
| Net Income | $1.80B |
| EPS (Basic) | $0.93 |
| EPS (Diluted) | $0.93 |
| Shares Outstanding (Basic) | 1.93B |
| Shares Outstanding (Diluted) | 1.93B |
Key Highlights
- 1Net earnings attributable to PMI for the nine months ended September 30, 2009, were $4.82 billion, a decrease from $5.45 billion in the same period of 2008.
- 2Diluted earnings per share (EPS) for the nine months ended September 30, 2009, were $2.44, down from $2.60 in the prior year.
- 3The company raised its full-year 2009 reported diluted EPS forecast to $3.20-$3.25.
- 4Cigarette volume for the nine months decreased by 1.0% year-over-year, with gains in Asia and Latin America & Canada offset by declines in the European Union and EEMA.
- 5Net revenues (excluding excise taxes) for the nine months decreased by 6.5% to $18.3 billion, impacted by unfavorable currency movements and lower volume/mix, partially offset by price increases and acquisitions.
- 6PMI repurchased approximately $4.2 billion of its common stock during the first nine months of 2009.
- 7The company continued to acquire businesses, including Swedish Match South Africa for approximately $262 million in September 2009 and an agreement to acquire Protabaco Ltda. in Colombia for $452 million.