Philip Morris International Inc. (PMI), incorporated in 1987, is engaged in the manufacture and sale of cigarettes and other tobacco products through its subsidiaries and affiliates. Its products are sold in approximately 160 countries. PMI’s portfolio comprises both international and local brands. Its portfolio comprises both international and local brands, which include Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris and Red & White. PMI divides its markets into four geographic regions: The European Union (EU); The Eastern Europe, Middle East and Africa (EEMA); The Asia Region, and The Latin America and Canada Region. In February 2009, the Company purchased the Petteroes tobacco business, which includes fine-cut trademarks primarily sold in Norway and Sweden. In September 2009, PMI acquired Swedish Match South Africa (Proprietary) Limited.
Separation from Altria Group, Inc.
Prior to March 28, 2008, PMI was a wholly−owned subsidiary of Altria Group, Inc. (“Altria”). On January 30, 2008, the Altria Board of Directors announced Altria’s plans to spin off all of its interest in PMI to Altria’s stockholders in a tax−free transaction pursuant to Section 355 of the U.S. Internal Revenue Code. The distribution of all of our shares owned by Altria (the “Spin−off”), was made on March 28, 2008 (the “Distribution Date”), to stockholders of record as of the close of business on March 19, 2008 (the “Record Date”). Altria distributed one share of our common stock for each share of Altria common stock outstanding on the Record Date.
Acquisitions and Other Business Arrangements
As of December 31, 2009, PMI operated and owned 58 manufacturing facilities, operated two leased manufacturing facilities, one in Korea and one in Mexico, and maintained 30 contract manufacturing relationships with third parties. In addition, it works with 37 third-party operators in Indonesia who manufacture its hand-rolled cigarettes. During the year ended December 31, 2009, 24 of its facilities each manufactured over 10 billion cigarettes of which six facilities each produced over 30 billion units.
PMI’s international brands contributing approximately 74% of its shipment volume in 2009. The Company owns a number of local brands, such as A Mild, Dji Sam Soe and A Hijau in Indonesia, Diana in Italy, Optima and Apollo-Soyuz in Russia, Morven Gold in Pakistan, Boston in Colombia, Belmont, Canadian Classics and Number 7 in Canada, Best and Classic in Serbia, f6 in Germany, Delicados in Mexico, Assos in Greece and Petra in the Czech Republic and Slovakia.
In the year 2009, PMI’s Gross profit decreased by 2.22% to $16.0 billion, compared to 16.16% increase in 2008, while net earnings decreased by 8.36% to 6.5 billion, compared to 13.24% increase in 2008. This decrease was primarily due to higher interest expense, net, and lower operating income (attributable to unfavorable currency, partially offset by higher results from operations). Diluted and basic EPS of $3.24 and $3.25, respectively, decreased by 2.1%. Excluding unfavorable currency impact of $0.53, PMI reports that diluted EPS increased 13.9%.
Consolidated Statements of Earnings
|(in millions of dollars, except per share |Years | |Change | |data) |2009 | |2008 | | | |Philip Morris (PM) |Imperial Tobacco |Altria Group (MO) |Reynolds American | | | |(ITYBY) | |(RAI) | |Net Revenue |62,080 |26,517 |23,556 |8,419 |
Industry Comparison (Reuters)
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