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Philip Morris 2Q mixed
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July 21, 1998: 10:08 a.m. ET
Operating profits match forecasts; charges, strong dollar hurt bottom line
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NEW YORK (CNNfn) - Philip Morris Companies Inc. reported second-quarter profits Tuesday that met Wall Street forecasts on an operating basis but fell short after one-time charges.
The tobacco and food giant posted operating earnings of $2 billion, or 82 cents a share -- in line with First Call analyst estimates -- on revenue of $18.98 billion.
A year earlier, earnings totaled $1.84 billion, or 75 cents a share, on revenue of $18.41 billion.
The second-quarter results, however, don't include a $232 million charge for Philip Morris' voluntary early retirement and separation programs, or a $96 million charge for advances for plaintiffs' attorney fees and the 1998 impact of the "most favored nation" provision of a prior tobacco litigation settlement with Mississippi.
Including those charges, net income totaled $1.8 billion, or 74 cents a share.
Those results were down from last year's second-quarter earnings, including charges, of $1.84 billion, or 75 cents a share.
The company said a strong U.S. dollar had a $91 million adverse impact on its earnings.
Domestic tobacco income rose 4.5 percent to $1.2 billion due to higher pricing, while international tobacco income gained 11 percent to $1.3 billion on higher pricing and volume growth, despite the financial crisis in Asia.
For the first half of 1998, Philip Morris earned $3.2 billion, or $1.30 a diluted share, down from $3.6 billion, or $1.48 a share, a year ago.
Philip Morris (MO) shares gained 1/4 to 40-3/8 in early Tuesday trading. 
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