Revises 2014 Full-Year
Reported Diluted EPS Forecast for Estimated Restructuring Costs in
the Netherlands;
Announces Acquisition
of U.K.-Based E-Vapor Company;
Reviews Business
Outlook and Strategies
Regulatory News:
Philip Morris International Inc.’s (NYSE / Euronext Paris: PM)
senior management will offer its perspective on the company’s
business outlook and long-term growth strategies at a two-day
investor meeting starting today at approximately 9:00 a.m. (Swiss
time) at its Operations Center in Lausanne, Switzerland.
“2014 is proving to be a complex and truly atypical year for
PMI,” said André Calantzopoulos, Chief Executive Officer.
“In addition to our exciting plans for the global roll-out of
our Marlboro Architecture 2.0 and our new commercial approach, we
are on the verge of leading a paradigm shift with the accelerated
commercialization of our Reduced-Risk Products.”
“We continue to face significant currency headwinds, an
improving but weak macro-economic environment in the EU and known
challenges in Asia, partly offset by a robust performance in a
number of markets and the contribution of our business development
initiatives. Furthermore, we have recently witnessed significant
price discounting at the low end of the market in Australia which,
were it to persist, could lead us to be at the lower end of our
2014 guidance for full-year currency-neutral adjusted diluted EPS
growth of 6%-8%.”
2014 Full-Year Forecast
The company revises its 2014 full-year reported diluted earnings
per share (“EPS”) forecast to be in a range of $4.87 to $4.97,
versus $5.26 in 2013, compared to a range of $5.09 to $5.19 as
previously announced on May 7, 2014.
On an adjusted basis, diluted EPS are projected to increase in
the range of 6% to 8% versus adjusted diluted EPS of $5.40 in 2013,
reflecting:
- a $0.01 per share charge recorded as
asset impairment and exit costs in the first quarter of 2014
relating to the decision to cease cigarette production in Australia
by the end of 2014;
- a pre-tax charge, related to the
contemplated decision to discontinue cigarette production in the
Netherlands in 2014, of approximately $495 million, or $0.24 per
share, the majority of which is expected to be recorded in the
second quarter of 2014; and
- an unfavorable currency impact, at
prevailing exchange rates, of approximately $0.61 for the full-year
2014.
The adjusted diluted EPS of $5.40 in 2013 is calculated as
reported diluted EPS of $5.26, plus a $0.02 per share charge
related to discrete tax items and a $0.12 per share charge related
to asset impairment and exit costs.
This forecast includes a productivity and cost savings target of
$300 million and a share repurchase target of $4.0 billion. This
forecast excludes the impact of any future acquisitions,
unanticipated asset impairment and exit cost charges, future
changes in currency exchange rates and any unusual events.
The factors described in the Forward-Looking and Cautionary
Statements section of this release represent continuing risks to
these projections.
Global Footprint
Optimization
On April 4, 2014, the company announced the initiation by its
affiliate, Philip Morris Holland B.V. (“PMH”), of consultations
with employee representatives on a proposal to discontinue
cigarette production at its factory located in Bergen op Zoom, the
Netherlands. PMH has reached an agreement with the Trade Unions and
their members on a social plan and, subject to the fulfillment of
certain other conditions, PMH plans to cease cigarette production
by September 1, 2014.
As a result, PMI expects to incur a pre-tax charge of
approximately $495 million, or $0.24 per share, the majority of
which is expected to be recorded in the second quarter of 2014,
reflecting approximately $356 million related to employee
separation costs and approximately $139 million related to asset
impairment costs. Of the $495 million, approximately $418 million
will be paid in cash, of which $181 million will be paid in
2014.
E-Vapor Acquisition
The company announced its acquisition of 100% of Nicocigs
Limited (“Nicocigs”), a leading U.K.-based e-vapor company whose
principal brand is Nicolites. The transaction is not subject to
regulatory approval and is not material to PMI’s 2014 consolidated
financial position, results of operations or cash flow.
“This acquisition is complementary to our previously announced
agreement for the license and distribution of Altria Group, Inc.’s
e-vapor products. In addition, it provides PMI with immediate
access to, and a significant presence in, the growing e-vapor
category in the U.K. market, as well as a strong retail presence,
which further complements the current restructuring of our
distribution arrangements in the U.K.," said Drago Azinovic, PMI’s
President, European Union Region.
Nicocigs was founded in 2008 and is headquartered in Birmingham,
U.K. The company employs a field force of approximately 40 sales
representatives and distributes to more than 20,000 points of sale
within the UK. Nicocigs’ 2014 April year-to-date retail share, as
measured by Nielsen, was 27.3%.
The U.K.’s e-vapor category has an estimated retail value of
approximately $350 million.
Investor Day Highlights
Presentations, outlining the company’s strategies for growth,
will be made by: André Calantzopoulos, Chief Executive Officer;
Bertrand Bonvin, Senior Vice President, Research & Development;
Manuel Peitsch, Vice President, Biological Systems Research;
Frederic de Wilde, Senior Vice President, Marketing & Sales;
Drago Azinovic, President, European Union Region; Matteo
Pellegrini, President Asia Region; Martin King, President, Latin
America & Canada Region; Miroslaw Zielinski, President, Eastern
Europe, Middle East & Africa Region and PMI Duty Free; Antonio
Marques, Senior Vice President, Operations; and Jacek Olczak, Chief
Financial Officer.
Volume Highlights:
- In 2014, the company forecasts a
decline in total cigarette industry volume, excluding China and the
USA, in a range of 2%-3%;
- As of 2015, the company is cautiously
optimistic that such total cigarette industry volume decreases will
be closer to the previous historical average of 1%-2%;
- The company forecasts a moderate
decline of the total industry in the EU Region in 2014 to a range
of 5.0%-6.0% and, assuming continued macro-economic improvement and
a continued deceleration in the growth of the overall e-vapor
category, to approximately 5.0%-6.0% in 2015 and to 4.0%-5.0%
thereafter; and
- As of 2015 and for the near term, the
company expects its annual volume to remain flat to down by
1.0%.
Net Revenues, Operating Companies Income (“OCI”) and Earnings
Per Share (“EPS”) Highlights:
- As of 2015 and for the near term, the
company aims to return to currency-neutral, net revenue and
adjusted OCI growth within its annual average 4%-6% and 6%-8% mid-
to long-term target ranges, respectively;
- As of 2015 and for the near term, the
company targets ex-currency adjusted diluted EPS growth in the
range of 8%-10%, reflecting share repurchases in the range of $2
billion to $3 billion per year; and
- Within the next three to four years,
the company anticipates that its Reduced-Risk Products will become
accretive to its bottom line and then will represent an upside to
all the metrics of its growth algorithm, including volume.
Reduced-Risk Products Portfolio Highlights:
- The company described the brand
platform that it has chosen to commercialize the electronic system
of its Platform 1 product;
- The company intends to commence a pilot
city test of its Platform 1 product in Italy and in Japan in the
fourth-quarter of 2014 and to expand nationally in 2015;
- In 2016, the company anticipates
launching a proprietary e-cigarette that it believes will provide
adult smoker satisfaction and a nicotine delivery profile
comparable to combustible cigarettes; and
- Due to incremental expenses in support
of its clinical trials and commercialization initiatives, the
company assumes its Reduced-Risk Products portfolio will have a
negative OCI impact in 2014, 2015 and 2016, which is included in
the company’s near-term growth algorithm. However, the OCI
contribution of Reduced-Risk Products should become neutral or
positive thereafter.
Operational, Marketing and Other Financial Highlights:
- The company targets Regional annual
average adjusted OCI growth, ex-currency, over the mid to long-term
of:
- Low single-digit in the EU;
- Low double-digits in EEMA;
- High single-digit in Asia; and
- High single-digit in Latin America
& Canada
- In the mid-term, reflecting the
strength of its brand portfolio, the company anticipates continued
pricing in line with its historical average increase of
approximately $1.8 billion per year;
- The company provided an update on its
growth strategy for the Marlboro brand under the Marlboro
Architecture 2.0 project and the progress of the company’s
commercial approach global initiative;
- During the period 2015-2017, the
company aims to limit the growth of its annual cost of goods sold
to a range of 1%-3%, excluding Reduced-Risk Products, volume/mix
and currency; and
- The company reaffirms its annual
dividend target payout ratio of 65%.
The presentations and Q&A sessions will be webcast live both
days at www.pmi.com/2014InvestorDay in a listen-only mode beginning
today, at approximately 9:00 a.m., and concluding at approximately
6:00 p.m. The webcast will resume tomorrow, June 27, 2014, at
approximately 10:00 a.m. and conclude at approximately 12:45 p.m.
Times are local Swiss. A copy of remarks and slides, along with an
archive of the webcast, will be made available at
www.pmi.com/2014InvestorDay.
This release may contain projections of future results and other
forward-looking statements that involve a number of risks and
uncertainties and are made pursuant to the Safe Harbor Provisions
of the Private Securities Litigation Reform Act of 1995. PMI is
further subject to other risks detailed from time to time in its
publicly filed documents, including the Form 10-Q for the quarter
ended March 31, 2014. PMI cautions that it does not undertake to
update any forward-looking statements that it may make, except in
the normal course of its public disclosure obligations.
Reduced-Risk Products
Reduced-Risk Products ("RRPs") is the term the company uses to
refer to products in various stages of development for which it is
conducting extensive scientific studies to determine whether it can
support claims of reduced exposure to harmful and potentially
harmful constituents in smoke (also referred to as “HPHCs”), and
ultimately claims of reduced disease risk when compared to smoking
combustible cigarettes. Before making any such claims, the
company will need not only rigorous data to substantiate reduced
risk but may also require government review and approval, as is the
case in the USA today.
About Philip Morris International Inc.
Philip Morris International Inc. (PMI) is the leading
international tobacco company, with seven of the world's top 15
international brands, including Marlboro, the number one cigarette
brand worldwide. PMI's products are sold in more than 180 markets.
In 2013, the company held an estimated 15.7% share of the total
international cigarette market outside of the U.S., or 28.2%
excluding the People's Republic of China and the U.S. For more
information, see www.pmi.com.
Investor Relations:New York: +1-917-663-2233Lausanne: +41 (0)58
242 4666orMedia:Lausanne: +41 (0)58 242 4500
P M I (NYSE:PMI)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
P M I (NYSE:PMI)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024