Philip Morris International's (NYSE:PM) is lowering its full-year guidance after cigarette shipments slipped in the third quarter.
The tobacco product manufacturer expects to earn US$5.35 to US$5.40 a share in fiscal 2013, revised from the previous US$5.43 to US$5.53 a share estimate, and compared to the Street's mean US$5.43 a share target. In 2012, the company reported a US$5.17 a share profit.
Excluding an unfavorable currency impact and a restructuring charge, Philip Morris expects 2013 adjusted earnings to rise 10% from the US$5.22 a share reported in 2012.
Shares fell 1.3% to US$87.33 on Thursday morning.
Weakness in the European Union's economy and increases in excise taxes in several countries contributed to a 5.7% drop in global deliveries to 223.1 billion units, but revenue still grew 5.3% to US$20.6 billion, compared to US$19.6 billion in the prior-year's third quarter.
Earnings rose 5.1% to US$2.3 billion or US$1.44 cents a share, compared to US$2.2 billion or US$1.32 cents a share in the same prior-year period, against the mean analyst estimate of US$1.43 a share.
During the quarter, Philip Morris spent US$1.5 billion to repurchase 16.7 million shares. Since the company announced the buyback program in May 2008, it has bought 539 million shares at a cost of US$32.4 billion.
