Marlboro-Maker Philip Morris Cuts Earnings Outlook
International Business Times
Published Jun 26, 2014 08:20AM ET
Updated Jun 26, 2014 08:45AM ET
Marlboro-Maker Philip Morris Cuts Earnings Outlook
By Greg Morcroft - A stronger U.S. dollar and the growing popularity of e-cigarettes forced tobacco giant Philip Morris International Inc (NYSE:PM) to cut its earnings outlook for the full year on Thursday.
The company also said weak sales in Australia, which three years ago tightened advertising rules for cigarettes contributed to the revision.
The company now expects to report a $4.87 to $4.97 per diluted share profit, compared to a forecast of $5.09 to $5.19 a share that it provided the market on May 7. The company also will take a $495 million charge during the year to shut down its Dutch production operations.
Bloomberg reported that CEO Andre Calantzopoulos told investors at a meeting Thursday in Lausanne, Switzerland that Philip Morris faces, “significant currency headwinds, an improving, but weak macroeconomic environment in the European Union and known challenges in Asia.”
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Written By: International Business Times
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