Philip Morris Tops Estimates, Retains 2001 Growth Targets

Philip Morris (MO Quote) surpassed analysts' first-quarter expectations by a penny, and the tobacco, food and beer giant said it remained comfortable with underlying earnings per share growth of 9% to 11% for 2001.

For the quarter ended March 31, the company, which is based in New York, posted underlying income of $2.11 billion, or 95 cents a diluted share. Analysts expected the company to earn 94 cents, according to Thomson Financial/First Call. The company, a member of the Dow Jones Industrial Average, earned $2.07 billion, or 89 cents a share, in the year-ago period.

Operating revenue for the quarter rose 10.8% to $22.36 billion from $20.19 billion.

"Philip Morris started the year with good momentum and our results are in line with our expectations,'' the company said in a press release. "For the first quarter, our domestic tobacco business delivered solid gains in income and good share performance, despite a decline in volume. Our international tobacco business delivered increases in both volume and income, and gained share in most of its important markets. New products and the acquisition of Nabisco drove the growth of both our North American and international food businesses, generating gains in volume and income. While volume and income were down in our beer business, we are addressing the challenges.''