Philip Morris (PM) on Thursday lowered its full-year earnings forecast for the second time, citing unfavorable currency exchange rates and weaker volume trends in the European Union.
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The New York-based cigarette manufacturer revised its fiscal 2012 earnings view to $5.10 to $5.20 a share. Excluding an expected unfavorable currency impact of about 25 cents, earnings are forecast to grow by 10% to 12% from $4.88 a year ago, Philip Morris said.
Analysts are looking for a profit of $5.23 a share, according to a Thomson Reuters poll.
The Marlboro cigarette maker’s chief executive, Louis Camilleri, speaking at an investor conference in Switzerland on Thursday, according to Dow Jones Newswires, said Philip Morris sees soft second-quarter performance in the EU, reflecting significant erosion in industry volume in southern Europe, particularly in Spain and Italy.
Yet, Camilleri said he is optimistic the company’s full-year organic volume performance will be in line with mid- to long-term annual organic volume growth target of 1% and that its growth will remain strong in Asia, Eastern Europe, the Middle East and Africa.
Shares of Philip Morris fell about 1.3% in Thursday’s session to $87.33.