Bloomberg News

Philip Morris Forecasts Below-Target Profit Growth Next Year

November 20, 2013

Philip Morris International Inc., (PM:US) the world’s largest publicly traded tobacco company, said its per-share profit would grow more slowly next year than its long-term target as shipments to Europe and Russia shrink.

Per-share profit excluding currency swings will grow 6 percent to 8 percent in 2014, the New York-based maker of Marlboro cigarettes said today in a statement. Its long-term target is for 10 percent to 12 percent growth, it said.

International cigarette volume may drop 2 percent to 3 percent next year, with declines of as much as 8 percent and 11 percent in the EU region and Russia, respectively, it said. The company will provide precise profit guidance in February.

Philip Morris fell 2.6 percent to $89.07 at 1 p.m. in New York, after earlier declining to $88.60, the biggest intraday drop since June. The shares had gained 9.4 percent this year through yesterday compared with a 25 percent gain (PM:US) for the Standard & Poor’s 500 Index.

To contact the reporter on this story: Cotten Timberlake in Washington at ctimberlake@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net


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Companies Mentioned

  • PM
    (Philip Morris International Inc)
    • $87.6 USD
    • 0.15
    • 0.17%
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