Summary
Philip Morris International Inc. (PM) reported strong financial results for the nine months and third quarter ended September 30, 2010. The company saw a significant increase in net revenues and net earnings attributable to PMI, driven by a combination of higher pricing, favorable currency movements, and strategic acquisitions. Specifically, the nine-month period showed a 10.7% increase in net revenues to $49.9 billion and a 14.3% increase in net earnings attributable to PMI to $5.5 billion, resulting in diluted EPS of $2.96, a 21.3% increase year-over-year. The company's operational performance was bolstered by growth across its segments, particularly in Asia due to the Philippines business combination and in Eastern Europe, Middle East & Africa driven by higher pricing. PM also highlighted its continued share repurchase program, returning significant capital to shareholders. While facing ongoing challenges related to excise taxes, regulatory pressures, and litigation, the company raised its full-year 2010 diluted EPS forecast, indicating confidence in its operational execution and market positioning.
Financial Highlights
53 data points| Revenue | $16.94B |
| Cost of Revenue | $2.29B |
| Gross Profit | $4.32B |
| Operating Income | $2.84B |
| Net Income | $1.82B |
| EPS (Basic) | $0.99 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 1.83B |
| Shares Outstanding (Diluted) | 1.83B |
Key Highlights
- 1Net revenues increased by 10.7% to $49.9 billion for the nine months ended September 30, 2010, compared to the prior year period.
- 2Net earnings attributable to PMI rose by 14.3% to $5.5 billion for the nine months ended September 30, 2010, with diluted EPS increasing by 21.3% to $2.96.
- 3The company experienced strong volume growth, particularly in Asia, boosted by the Philippines business combination, and in Eastern Europe, Middle East & Africa.
- 4PMI repurchased approximately 78.5 million shares of common stock for $3.9 billion during the first nine months of 2010.
- 5The company raised its full-year 2010 diluted EPS forecast to a range of $3.90 to $3.95.
- 6Favorable currency movements contributed significantly to revenue and earnings growth, particularly from currencies like the Australian dollar, Canadian dollar, and Russian ruble.
- 7The European Union segment faced challenges with declining volume and market share in key markets like Germany and Greece, despite overall price increases.