Philip Morris Sticks With Growth Forecast

The food, tobacco and beer giant tops first-quarter estimates by a penny.

Author:: TSC Staff
Publish date:: Apr 17, 2002 12:14 PM EDT

Philip Morris

reported first-quarter earnings that beat estimates by a penny, and the company said its various business lines posted solid results despite the sluggishness of the world's economies.

The company reported earnings, excluding items, of $1.14 a share, topping the consensus forecast by a penny. Philip Morris regularly reports what it calls underlying earnings, which are calculated before various items. In the latest quarter, underlying earnings also treat the

Kraft Foods

(KFT)

initial public offering as though it had occurred on Jan. 1, 2001.

Using generally accepted accounting principles, the company earned $1.09 a share, up from 80 cents in the same quarter a year earlier. Total revenue rose about 3% to $20.5 billion.

Operating income for the company's domestic tobacco business increased 4% to $1.3 billion, while underlying operating income for Philip Morris International, the international tobacco business, rose 0.4% to $1.6 billion.

Kraft's underlying volume increased 2.5%, and operating income rose 7.4% to $1.5 billion. Philip Morris still owns about 84% of Kraft. Miller Brewing's operating income climbed 4.8% to $130 million.

Philip Morris is still expecting underlying earnings to grow 9% to 11% in 2002, the same forecast the company has offered before. The projection is based on earnings of $4.42 in 2001, which adjusts for various items and expenses. The growth expectation implies earnings for this year of $4.82 to $4.91 a share, while analysts polled by First Call are looking for a profit of $4.86.

Shares of Philip Morris, a member of the

Dow Jones Industrial Average, were recently down 37 cents, or 0.7%, to $52.99.