NEW YORK, N.Y. – Philip Morris International’s second-quarter profit declined 13 per cent, stung by foreign exchange rates for the U.S. dollar.
But its adjusted profit and revenue topped Wall Street’s view. Its shares edged up in morning trading Thursday.
The seller of Marlboro cigarettes and other brands outside the U.S. earned $1.85 billion, or $1.17 per share, for the period ended June 30. A year earlier it earned $2.12 billion, or $1.30 per share.
Removing certain items, earnings were $1.41 per share. Analyst surveyed by FactSet expected $1.24 per share.
Revenue excluding excise taxes was $7.8 billion, down 1.5 per cent from $7.92 billion a year earlier. Wall Street predicted $7.52 billion.
Shares of Philip Morris International rose 78 cents to $85.48 in morning trading. Its shares have fallen almost 3 per cent so far this year.
Because it does all its business overseas, the company has to navigate changes in currency values. A stronger dollar cuts into revenue generated overseas when it’s translated back into dollars.
Cigarette shipment volume fell 2.7 per cent to 222.8 billion cigarettes. Total shipments of Marlboro cigarettes edged up 1 per cent, mostly due to Eastern Europe, the Middle East, Africa and Asia.
Philip Morris International maintained its full-year forecast for earnings in a range of $4.87 to $4.97 per share. Analysts foresee earnings of $5.15 per share.
Philip Morris International Inc. is based in New York and Switzerland. Richmond, Virginia-based Altria Group Inc., the owner of Philip Morris USA, spun off Philip Morris International as a separate company in 2008.