Philip Morris Int'l 3Q profit falls 8 percent

Philip Morris International's third-quarter profit dropped 8 per cent as cigarette sales fell in the overseas markets that it serves and it was hurt by foreign exchange rates for the US dollar.
The seller of Marlboro and other cigarette brands outside the United States earned USD 2.15 billion, or USD 1.38 per share, in the quarter, down from USD 2.34 billion, or USD 1.44 per share, a year ago.
On an adjusted basis, it earned USD 1.39 per share, beating Wall Street estimates by 6 cents, according to Zacks Investment Research.
Excluding excise taxes, revenue fell about 1 per cent to USD 7.86 billion. Analysts expected revenue of USD 7.74 billion.

Cigarette shipments fell less than 1 percent to 222.3 billion cigarettes. Total Marlboro volumes fell 3.5 per cent to 72.6 billion cigarettes. Shipments fell 2 per cent in Latin America and Canada and 1.3 per cent in Asia.
Shipments were up less than 1 per cent in the company's region that encompasses Eastern Europe, the Middle East and Africa, as well as in the European Union.

Still, the company said its retail market share increased in a number of key regions, including Argentina, France, Germany, Italy, Russia, Spain and Switzerland.
Smokers face tax increases, bans, health concerns and social stigma worldwide, but the effect of those on cigarette demand generally is less stark outside the United States. Philip Morris International has compensated for volume declines by raising prices and cutting costs.

Because it does all its business overseas, the company also has to navigate changes in currency values. A stronger dollar cuts into revenue generated overseas when it's translated back into dollars.
The company today cut its full-year earnings forecast to a range of USD 4.76 and USD 4.81 per share.
Philip Morris International Inc, based in New York and Switzerland, is the world's second-biggest cigarette seller behind state-controlled China National Tobacco Corporation.