Summary
Philip Morris International Inc. (PM) issued this 8-K filing on November 25, 2013, to provide an update on potential currency headwinds expected in 2014. During a presentation at the Morgan Stanley Global Consumer Conference on November 20, 2013, the company indicated that prevailing exchange rates could negatively impact its 2014 earnings. Specifically, PM estimates that currency fluctuations might reduce its diluted earnings per share by approximately 40 cents. This clarification addresses investor concerns regarding the impact of foreign exchange rates on future profitability. The company reiterates its policy of basing earnings forecasts on then-prevailing currency exchange rates due to the unpredictable nature of currency movements. Investors should note that the final 2014 earnings guidance, which will include the currency impact based on then-prevailing rates, is scheduled for release on February 6, 2014.
Key Highlights
- 1Philip Morris International Inc. (PM) alerted investors to potential currency headwinds for 2014.
- 2The company estimates currency could have an unfavorable impact of approximately 40 cents per share on 2014 diluted earnings.
- 3This disclosure was made following a presentation at the Morgan Stanley Global Consumer Conference on November 20, 2013.
- 4PM bases its earnings forecasts on prevailing currency exchange rates due to unpredictability.
- 5The company will provide its official 2014 reported diluted earnings per share guidance on February 6, 2014.
- 6The upcoming guidance will incorporate the currency impact based on exchange rates prevalent at that time.