Philip Morris International Inc., the world’s largest publicly traded tobacco company, posted second-quarter profit that missed analysts’ estimates as the strong dollar hurt sales outside of the U.S.
Earnings were $1.15 a share, excluding some items, the New York-based company said in a statement Tuesday. That fell short of the analyst consensus of $1.20. Sales excluding excise taxes fell to $6.65 billion, missing analysts’ $6.77 billion average projection.
Philip Morris, which only sells its products outside of the U.S., was hurt by a stronger U.S. dollar that reduced the value of revenue generated abroad. Currency-exchange rate fluctuations trimmed sales by $303 million in the quarter, the company said. Philip Morris and other tobacco companies also have faced declining sales volumes of their core product due to health concerns.
The shares dropped 0.6 percent to $103 on Monday in New York. The stock has gained 17 percent this year.
Still, the company raised its forecast for profit this year. Earnings this year will be $4.45 to $4.55, up from a previous projection of $4.40 to $4.50, the company said.
Chief Executive Officer Andre Calantzopoulos has said he expects better sales growth in the second half of the year. The dollar also has weakened against some other major currencies since the start of the year.
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