Philip Morris Conference Call Highlights
Shares of Philip Morris (NYSE: PM) are barely up one percent following its second-quarter earnings release.
Below are some highlights and key takeaways from the company's conference call.
• As we expected, we achieved strong results in the second quarter, driven by a lower cigarette decline of 2.7% and the solid pricing volumes of $494 million.
• As result, net revenues excluding currency increased by 4.5%, and adjusted OCI was up by 9.5% on the same basis.
• Other adjusted diluted EPS excluding currency grew by 20% to $1.56 per share.
• This was driven by our strong business results and a relatively easily comparison with the same quarter last year.
• For the first half of the year, our adjusted diluted EPS excluding currency increased by 12.4% to $2.91.
• As we announced at our Investor Day in June and are referenced today, our reported diluted EPS guidance for 2014 at prevailing exchange rates is in the range of $4.87 to $4.97 versus $5.26 in 2013.
• We have recently implemented or announced price increases in Germany, Portugal, and Spain.
• Consequently, we're expecting the full-year decline in the EU region to be approximately 5%.
• Absent trade inventory movements, our market share was also have been up in Germany.
• Chesterfield performed particularly well, gaining 1.4 share points in the quarter to reach a regional share of 5.8%.
• This market share has grown very rapidly since we re-position the brand in Italy, and has also benefited from geographic expansion.
• Our guidance continues to include approximately $0.61 per share of unfavorable currency at prevailing exchange rates.
• After-tax charge of $0.24 per share recorded as artist impairment.
• Our 2014 guidance represents a growth rate excluding currency and business restructuring charges of approximately 6% to 8%
• In Japan, cigarette industry volume declined by 14.4%
• Our shipment volume decreased by 16.4%.
• We remain committed to generously rewarding our shareholders through a combination of dividends and share repurchases.
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