Philip Morris International Inc., the world’s largest publicly traded tobacco company, raised its full-year earnings forecast on less adverse currency shifts and as declines in cigarette consumption may ease.
Earnings will reach $4.40 to $4.50 per share, based on current exchange rates, which represents a 10 per cent to 12 per cent gain excluding the currency impact, the New York-based company said Tuesday in a statement. The forecast doesn’t include any share repurchases. The company previously forecast $4.25 to $4.35 per share.
The company reported first-quarter earnings per share of 98 cents, missing the analyst consensus for $1.11. Sales excluding excise taxes fell 8.1 per cent to about $6.08 billion. Analysts estimated $6.28 billion, on average.
The company, which only sells its products outside of the US, faces headwinds as the dollar’s gains over the past two years reduce the value of sales generated abroad. However, the dollar has slid against major currencies this year, and Chief Executive Officer Andre Calantzopoulos has said he expects better sales growth in the second half of the year.
Tobacco companies have long faced declining demand as consumers increasingly turn away from cigarettes due to health concerns. Governments around the world are working to accelerate that trend with plain-packaging initiatives.
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