|
Philip Morris 2Q in line
|
 |
July 18, 2000: 12:03 p.m. ET
Strong fundamentals help tobacco and food company meet expectations
|
NEW YORK (CNNfn) - Second-quarter net earnings of embattled Philip Morris Cos. Inc. rose nearly 5.5 percent from a year earlier, the company reported Tuesday.
The tobacco and food products maker earned $2.2 billion, or 95 cents per share, in line with a survey of analysts by earnings tracker First Call. In the year-earlier quarter, the company reported earnings from operations of $2.1 billion, or 85 cents a diluted share.
 Domestic tobacco and international food revenue boosted the company's top line. Revenue rose 5.4 percent to $20.8 billion from $19.8 billion.
"Our robust second-quarter results reflect the continued strength of our business fundamentals," Chairman and CEO Geoffrey C. Bible said. "We believe that we're an excellent position to meet the company's growth targets for the full year."
The company's beer business, Miller Brewing, had the highest growth of any segment, rising 8.4 percent to $193 million on the strength of higher pricing and contract brewing.
Philip Morris and other major cigarette makers were hit with a $144.9 billion jury verdict in a smokers' class action suit in Florida late Friday. Philip Morris would be responsible for about half of that amount, although it has vowed an appeal.
Salomon Smith Barney analyst Martin Feldman said the award will not have a big impact on Philip Morris' fundamentals and the market will concentrate on the appeals. (484K WAV or 484K AIFF)
In June, the company purchased Nabisco Holdings Corp. (NA: Research, Estimates) for $14.9 billion. Nabisco will be combined with Philip Morris' Kraft Foods division, and less than 20 percent of the new company will debut on Wall Street as an initial public offering.
Shares of Philip Morris (MO: Research, Estimates) rose 5/16 to 23-5/16 in morning trading on the New York Stock Exchange. 
|
|
|
|
|
 |
|
