On the Call: Philip Morris Int'l CFO Waldemer

Source from:  The Associated Press 07/23/2010

The world's biggest non-governmental cigarette maker, Philip Morris International Inc., has been raising its prices like other tobacco companies around the world to keep profits up as the recession and declining demand cut into cigarette volumes. But tobacco companies must guard against driving smokers to cheaper brands or buying fewer cigarettes. Philip Morris International, which sells Marlboro and other top brands overseas, also has focused on emerging markets to make up for declines in more developed areas like the European Union. In a conference call with analysts on Thursday regarding Philip Morris International's second-quarter earnings, Chief Financial Officer Hermann Waldemer discussed pricing. QUESTION: Are you done with all the necessary price increases needed to reach the goals for the year? RESPONSE: Pricing is always a little bit skewed, or very much skewed, toward the beginning of the year because this is when governments make their budgets. … Our pricing decisions follow those governmental budget decisions … We are fully on track on our pricing plans to achieve the results that are reflected in our (earnings) guidance. Enditem