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The Markets
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The Markets
by Proactive
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The Markets
by Proactive
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Manufacturing & engineering

Philip Morris International drifts lower as strong dollar hits sales

Shares in cigarette and tobacco maker fell 3.4% in morning New York trading

Shares in Marlboro maker Philip Morris International (NYSE:PM) wafted lower on Tuesday after a strong dollar and lower sales hit second quarter revenue.

The stock fell US$3.52, or 3.4%, to US$99.5 after PMI, which also makes Parliament, L&M and Chesterfield cigarettes, posted earnings per share of US$1.15, below market estimates of US$1.20.

Sales also fell short of forecasts, at US$6.65bn rather than the US$6.77bn predicted by analysts.

Philip Morris faced currency troubles as the strong dollar made its tobacco more expensive overseas.

Sales also took a hit as health concerns reduce demand for cigarettes generally, particularly in western markets.

The company said it anticipated better second-half sales as the dollar weakens.

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