Tobacco, Nabisco, Help Philip Morris Increase Earnings

Jan. 13, 2005
By BridgeNews Higher earnings from its tobacco businesses and the addition of Nabisco to its Kraft Foods arm helped Philip Morris Cos. Inc. report first-quarter earnings that were slightly better than analysts expected. The New York-based company, ...
ByBridgeNews Higher earnings from its tobacco businesses and the addition of Nabisco to its Kraft Foods arm helped Philip Morris Cos. Inc. report first-quarter earnings that were slightly better than analysts expected. The New York-based company, behind such diverse products as Marlboro cigarettes, Kraft Macaroni & Cheese, and Miller High Life beer, reported underlying net earnings of $2.1 billion, up 2.2% from a year earlier. The profit amounted to 95 cents per share, up 6.7% from a year earlier and 1 cent higher than the average forecast from analysts. Operating revenues rose 11.6% to $22.4 billion. The net profit was $2.096 billion, up from $2.009 billion a year earlier. The company said it remains confident that full-year earnings per share will grow by 9% to 11%. An increase of that size would give Philip Morris earnings per share of between $4.09 and $4.16 for 2001. Analysts expect earnings of $4.07 per share. The domestic tobacco business reported underlying operating income of $1.2 billion, up 7.7% from a year earlier even though shipment volumes fell 2.3%. International tobacco reported an underlying operating profit of $1.6 billion, up 4.6% from a year ago. Shipment volume increased 2.6%. The North American food business had underlying operating income of $1.2 billion, up 25.1% from a year ago, primarily because of the acquisition of Nabisco.

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