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Posts Tagged ‘Philip Morris’

Philip Morris International – The Best Dividend Growth Company

Monday, January 14th, 2013

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Philip Morris International (PMI) within the last years has executed diverse shareholder useful policies. The giant cigarette manufacturer has been involved in a significant share repurchase program and has been growing its dividend since its spin off from Altria in March 28, 2008. PMI has also raised its revenue at a stable tempo while also taking benefits of historically poor interest rates to decrease its interest expenditure. Nowadays Philip Morris is trading for $88.72 as of November 23, 2012. With its present quarterly dividend of about $0.85, the yield totals to $3.40 per year, or 3.5%

PMI has been increasing its dividend at a mean rate of approximately 15% since its spin off from in 2008. Its 2008 dividend constituted $1.84 in comparison to present day’s dividend of $3.40; this is similar to an 85% boost in the dividend in only 5 years.

The manufacturer has also been employed in a hostile repurchase program since 2008. The company has repurchased approximately $26 billion to date. This is approximately 25% of the whole shares outstanding since it was spun off.

Marlboro producer has been raising its revenue at a steady pace if you leave out the effect of foreign currencies. For the third quarter of 2012 the company announced $1.32 in earnings per share (EPS), lower 2.5% versus the $1.35 claimed in the third quarter 2011. Not including currency, reported EPS came in at about $1.39, up 3.0%. For timeframe before to 2012 EPS increase has averaged over 18% per year except currencies. Year to date (YTD) altered EPS ex currency is higher by 10.9 in comparison to previous year. The company has forecasted middle to long run currency neutral EPS advancement rate of between 10% to 12%. YTD net profits increased up 5.5% except currency compared to previous year. PMI has averaged a 65% dividend payout rate within the last eight quarters. Within the third quarter of the 2012 the payout ratio constituted 60% in comparison to the 55% payout ratio within the third quarter of 2011.

The leading cigarette producer has demonstrated an amazing job supporting its balance sheet since its spin off in 2008. The mean coupon yield for its long lasting debt has decreased 25% from 5.5% in 2008 to a predicted 4.5% in 2012. The regular time to maturity for its long run debt has boosted 3 years from 7.3 years in 2008 to about 10.5 years in 2012. For those who are looking for a profitable dividend growth PMI is the best variant.

More about PMI:

http://www.pmi.com/
http://investors.pmi.com/
http://en.wikipedia.org/wiki/Philip_Morris_International
http://finance.yahoo.com/q?s=PM
http://www.marketwatch.com/investing/stock/pm

Philip Morris Trader of Marlboro Cigarettes

Tuesday, May 8th, 2012

buy kent cigaretteCigarette manufacturer Philip Morris International Inc. declared recently that its chief financial officer, Hermann Waldemer, intends to leave in July. The trader of info/new-style-of-marlboro-cigarettes and other famous smoking brands sold outside the U.S. explained Waldemer will be succeeded by Jacek Olczak, who at present serves as president of the company’s European Union region, on Aug. 1.

Waldemer, 55, has been Philip Morris International’s fiscal head since the 2008 spin-off from Richmond, Va.-based Altria Group Inc. He became the Philip Morris International head in 1987 and had recently been executive vice president and CFO since 2005.

Olczak, 47, who joined Philip Morris International in 1993, has headed the company’s European Union region since 2009. The company said Drago Azinovic, president of Philip Morris Japan, will succeed Olczak in that role.

Philip Morris International, which has offices in in New York and Lausanne, Switzerland, is the world’s second-biggest tobacco company after China National Tobacco Corp.

Shares decreased by 79 cents to $88.34 in afternoon tobacco selling. Its shares set a high for the year at $91.05 a week ago. They fell as low as $60.45 in early October.

Philip Morris Profits Up Thanks to Cigarette High Prices

Friday, February 3rd, 2012

buy camel cigarettesPhilip Morris International Inc., the world’s largest publicly traded tobacco company, reported third-quarter profit that topped analysts’ estimates, helped by higher shipments and increased cigarette prices in Asia.

Net income rose 30 percent to $2.38 billion, or $1.35 a share, from $1.82 billion, or 99 cents, a year earlier, the New York-based maker of Marlboro cigarettes said in a statement. Excluding some items, profit was $1.37 a share, beating the $1.24 average of 14 analysts’ estimates compiled by Bloomberg.

Chief Executive Officer Louis Camilleri raised prices in Japan, Australia and Indonesia, where demand pushed total shipments higher by 4.4 percent. Excluding excise taxes, total sales at Philip Morris, which generates all of its revenue outside the U.S., advanced 26 percent to $8.36 billion.

“Aided by Asia and the emerging markets, shipments were good, and they’re not having any problem getting price increases,” Jack Russo, an analyst at Edward Jones & Co. in St. Louis, said today in an interview. He rates the shares as “buy.” “They blew by the consensus pretty easily.”

The company raised the low end of its 2011 profit forecast by 5 cents to $4.75 a share, and left unchanged the high end of $4.80. Analysts projected $4.74, the average of 16 estimates.

Philip Morris rose 3.3 percent to $68.19 at 4 p.m. in New York. The shares have climbed 17 percent this year.

Most Profitable

Lorillard Inc., the third-largest U.S. cigarette maker, is scheduled to release its results on Oct. 24, followed by Reynolds American Inc., the second-biggest, on Oct. 25 and Altria Group Inc., the largest, on Oct. 27.

Philip Morris is the second most profitable company in the Standard & Poor’s 500 Index, after Linear Technology Corp., according to earnings rankings compiled by Bloomberg through Oct. 18. The analysis gave equal weight to five variables, including profit margin and return on invested capital. Lorillard, based in Greensboro, North Carolina, ranked 10th.

Marlboro Sinus PM Cigs, Philip Morris

Tuesday, January 17th, 2012

tax free marlboro sinus cigarettesAt a press conference Tuesday, tobacco giant Philip Morris introduced its new medicinal cigarette, Marlboro Sinus PM, a smokable nighttime cough suppressant and analgesic designed to ease cold symptoms. “Marlboro Sinus PM uses the power of acrid tobacco smoke to restore and rejuvenate,” Philip Morris president William Gifford said.

“Just inhale two cigarettes right before bedtime and the medicated tar goes to work by coating your mucus and packing it down deep inside your lungs. You’ll wake up feeling rested, refreshed, and ready for a smoke.” In addition to the Sinus PM cigarettes, Philip Morris will later this month introduce its new line of Non-Drowsy Daytime Formula 100s and Copenhagen Smokeless Birth Control Dipping Tobacco.

Tobacco Industry Misled on Cigarette Additives

Thursday, December 22nd, 2011

cigarettes additives onlineResearchers said Wednesday the tobacco industry of misled smokers over the safety of additives in cigarettes after they reanalyzed the data from a decade old study by scientists working for the American cigarette manufacturer Philip Morris.

The original study by the cigarette maker showed that there was “no evidence of substantial toxicity” associated with the additives studied.

The tobacco industry have deceived the public about additives in cigarettes, found a new study. More regulation could be placed on the tobacco industry. Cigarette butts fill an ashtray outside a construction site in Central, a business district in Hong Kong.

However, researchers at the Centre for Tobacco Control Research at the University of California said, after conducting their own analysis that the original studies “cannot be taken at face value” and were designed to intentionally hide the dangers of the additives.

The researchers compared their assessment to the results from the original “Project Mix” tobacco sponsored study and found that 15 different poisonous chemicals increased by an average of 20 percent.

Furthermore, researchers said that for “unexplained reasons” Philip Morris had purposely de-emphasized 19 of the 51 chemicals tested in their results which included nine of the 15 chemicals that were significantly increased.
Stanton Glantz, the lead author for the new research, said that the results were unsurprising and said there was a long history of big tobacco manipulating scientific results to benefit themselves.

Glantz said tobacco firms had spent many years preparing for the increasing likelihood tougher regulation for their products, including the regulation of additives.

Researchers explained that additives were sometimes used to make smoke feel less irritating, to make cigarettes more addictive and to add better taste.

The study went over about 60 million pages of documents from the tobacco industry that had been turned over during litigation.

“While the procedures to collect the data themselves appear sound, the way that the data were analyzed and interpreted is not,” researchers wrote.

In 2009, the Food and Drug Administration had prohibited flavor additives in cigarettes, with an exception on menthol.
Gantz said that the FDA and other law makers should now use the industry’s own data to eliminate the cigarettes-news/menthol-cigarettes-feel-freshness additives.

Action Against Light Cigarettes

Thursday, October 27th, 2011

light cigarettes actionA class-action lawsuit seeking at least $696 million in damages ended Tuesday in a mistrial, after a St. Louis Circuit Court jury could not agree on whether tobacco giant Philip Morris deceived customers with its marketing of light cigarettes.

After jurors heard four weeks of testimony, they deliberated more than four days before indicating Tuesday morning that some of them were unwilling to continue. They were split 8-4 on the side of the plaintiff, one vote short of the nine needed for a civil case verdict.

Plaintiffs’ attorney Stephen Swedlow said he was disappointed, and would ask for a new trial.

Philip Morris attorneys George Lombardi and Beth Wilkinson said the deadlocked jury meant the lawyers seeking damages could not prove their case. “This is fundamentally not a plaintiffs’ verdict,” said Lombardi.

The lawsuit, filed 11 years ago, claimed that light cigarette packages promised lower tar and nicotine, but were made from the same tobacco as regular cigarettes. Smokers might compensate for the lower nicotine by inhaling longer and more deeply, so the light cigarettes are just as dangerous are regular ones, the plaintiffs’ attorneys claimed.

Philip Morris attorneys argued that the cigarettes are different, that they contain less tobacco than Marlboro Reds, more ventilation and a longer filter. Inhalation compensation has been known for years, and all smokers smoke differently, the cigarette-maker’s lawyers said.

Actual damage estimates ranged from $696 million to $911 million, which averages to just over a dollar per pack of the cigarettes at issue sold in Missouri from early 1995 until the end of 2002, the period covered by the suit.

Juror Jim Chase, 56, sided with Philip Morris. He thought the most convincing evidence came from a study that showed tar and nicotine levels went up in smokers who switched from light to regular cigarettes. “That has to tell me that they were lights to some extent,” he told a reporter.

Leonard Hill, 50, favored the plaintiffs. “Too many documents showed Philip Morris knew what was going on,” he said.

The class’ representative plaintiff, Deborah Larsen, 60, said she was disappointed but saw this as a chance to try again. “It might give us an opportunity to look at things and present them a little differently,” she said. “But it also gives Phillip Morris that chance, too.”

This was the second big-stakes tobacco trial in Judge Michael David’s court his year. In April, big tobacco companies prevailed in a sweep of verdicts against hospitals seeking to recoup the costs of treating smokers’ diseases. That case took two and a half months to present.

Philip Morris Marlboro Lights Case

Tuesday, October 25th, 2011

cheap marlboro lights cigarettesCan eight jurors convince one more to side with a class of plaintiffs suing cigarette-maker Philip Morris? That question is on the minds of plaintiff and defense lawyers alike as they wait for word from the jury that Monday morning said it was deadlocked.

Jurors began deliberating late in the afternoon of Oct. 17 following closing arguments in the trial that took place in Judge Michael David’s courtroom in the St. Louis County Circuit Court.

The lawsuit alleges violations of the Missouri Merchandising Practices Act. By marketing the cigarettes as having lowered tar and nicotine, Philip Morris reassured the class that smoking Marlboro Gold cigarettes was healthier — or not as unhealthy — as smoking regular cigarettes, the plaintiffs alleged.

In a class action suit in St. Louis Circuit Court, smokers allege that Philip Morris knew that its “light” cigarettes were no lower in tar and nicotine. Bloomberg News file photo

On Monday, the courtroom turned into a waiting room as lawyers wandered in and out and the jury sent down notes to the judge.

What each side wanted seemed to change with each request the jury submitted.

On Monday morning, when all the parties knew was that the jury was deadlocked 8 to 4, plaintiffs lawyer Mark Bronson was before the judge arguing for a mistrial. At that point, the Neuman, Bronson & Wallis lawyer told David that “any further instruction would in effect be coercive.” Bronson said that includes a response asking the jury whether further deliberation would be helpful.

Shortly after the jury notified the judge that it was deadlocked, it sent another note asking to see an exhibit the note described as an interoffice communication about light cigarettes being a gimmick. The judge responded only to the first note, over the plaintiffs’ objection, asking about the utility of further deliberations.

After lunch, the jury sent down another note, stating that it wanted to see the exhibit before it could answer the judge’s question. The jury also asked whether, if it found for the plaintiff, would it be bound by any damage amount.

This time defense lawyer Beth Wilkinson argued for a mistrial.

“I don’t know how you could respond to [question] number one when we know how they’re leaning,” she said.
The judged denied this motion too, and told the jurors he was “not permitted to comply” with the exhibit request. In response to the question about being bound to a certain amount, the judge told the jurors they had to be guided by the instructions as given.

The jury continued to deliberate late Monday afternoon.