Tobacco.org

Philip Morris, Reynolds Beat Profit Estimates on Higher Prices  

Philip Morris International Inc., the world’s largest publicly traded tobacco company, and Reynolds American Inc. reported third-quarter profit that beat analysts’ estimates as higher prices offset shipment declines.

Philip Morris, based in New York, said earnings dropped to 93 cents a share, topping the 91-cent average of 13 analysts’ estimates compiled by Bloomberg. Reynolds, the second-largest U.S. tobacco company, reported earnings, excluding some items, of $1.24 a share, compared with $1.17 expected by 11 analysts.

Both companies increased their 2009 earnings forecasts. Philip Morris, which gets all of its revenue outside the U.S., used pricing to counter a 2.9 percent drop in cigarette shipments and revenue declines tied to foreign exchange rates. Reynolds, the Winston-Salem, North Carolina-based maker of Camel cigarettes, boosted prices earlier this year before the U.S. government increased taxes by 62 cents a pack April 1.

Jump to full article »