Philip Morris Profits Increase
Tobacco giant Philip Morris Cos. Inc. Tuesday reported a 2.9 percent increase in second quarter earnings before charges, to $2.05 billion, meeting Wall Street expectations despite declines in both domestic and worldwide tobacco operations.
Second quarter 1999 results exclude $45 million in pre-tax charges for severance costs in the domestic tobacco operations. Second quarter 1998 results exclude $232 million in charges for early retirement and severance costs and $199 million in charges for tobacco lawsuit settlements.
North American tobacco volume, a measure of cigarette consumption, fell 9.6 percent in the second quarter, although the company's top-selling Marlboro brand gained market share. International tobacco consumption fell 6.1 percent on poor economic conditions in Eastern Europe, Philip Morris said.