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Philip Morris profits up
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April 20, 1999: 10:26 a.m. ET
Cigarette maker's earnings of 80 cents a share in line with forecasts
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NEW YORK (CNNfn) - Philip Morris Cos. Tuesday reported slightly higher first-quarter profits in line with forecasts as strength in its food and overseas cigarette operations offset weakness in the domestic tobacco business.
The world's biggest cigarette maker, whose brands include Marlboro and Virginia Slims, said earnings excluding one-time items rose to $1.96 billion, or 80 cents a diluted share, in the quarter, from $1.93 billion, or 79 cents a share, a year earlier. The results matched forecasts for profits of 80 cents a share, according to First Call, which tracks estimates on Wall Street.
The results exclude pretax charges of $287 million in the latest quarter and $901 million a year earlier for severance and settling lawsuits. Including those charges, net earnings rose 29 percent to $1.79 billion, or 73 cents a diluted share, from $1.38 billion, or 57 cents a share, in the 1998 quarter.
Sales rose 6 percent to $19.5 billion from $18.4 billion. In addition to cigarettes, New York-based Philip Morris makes Kraft cheese, Oscar Mayer hot dogs and other food products, as well as Miller beer.
Philip Morris stock, one of the 30 in the Dow Jones industrial average, rose 7/8 to 34.
Philip Morris said operating earnings in its domestic tobacco business fell 7 percent to $1 billion, hurt by a 9.6 percent decline in cigarette shipments and higher promotions.
International tobacco earnings rose 1 percent to $1.4 billion while operating earnings in the food segment rose 5 percent to $842 million.
Miller beer's profits before taxes, interest and other items grew 6 percent to $136 million, the company said.
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Philip Morris
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