Philip Morris International's cigarette shipment volume during the 12 months to the end of December, at 899,856 million, was increased by 4.1 per cent on that of the 12 months to the end of December 2009. Excluding the effects of acquisitions, however, shipments were down by 2.5 per cent.
Shipments in PMI's Asia region were up by 24.8 per cent to 282,290 million, primarily driven by growth in Indonesia that reflected a higher total market, market share growth in South Korea, and the favorable impact of the company's business combination with Fortune Tobacco Corp in the Philippines, which amounted to 57.4 billion cigarettes. These factors were partially offset in Japan where the market fell after the October 1, 2010, tax increase and unfavorable trade inventory movements, partly offset by higher market share.
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Shipments in PMI's "Latin American & Canada" (LAC) region were up by 1.5 per cent to 105,290 million, shipments in its "Eastern Europe, Middle East & Africa" (EEMA) region were down by 3.2 per cent to 289,312 million, and EU shipments were down by 5.2 per cent to 222,964 million.
Total Marlboro cigarette shipments of 297.4 billion were down by 1.5 per cent, due primarily to a decrease in the EU of 5.8 per cent, which mainly reflected lower market shares in Germany and Greece, and a lower total market in Spain; a decrease in the EEMA region of 1.5 per cent; an increase in the Asia region of 3.0 per cent; and growth in the LAC region of 2.1 per cent.
Shipments of L&M, at 88.6 billion, were down by 2.4 per cent, shipments of Chesterfield, at 36.4 billion, declined by 3.3 per cent, shipments of Parliament, at 35.2 billion, were down by 5.7 per cent, shipments of Lark, at 28.7 billion, decreased by 6.0 per cent, but shipments of Bond Street, at 44.1 billion, increased by 5.7 per cent.
Total shipment volume of other tobacco products (OTP), in cigarette equivalent units, grew by 35.1 per cent, benefiting from the acquisition of Swedish Match South Africa. Excluding acquisitions, shipment volume of OTP was down by 4.3 per cent.
The total shipment volume for cigarettes and OTP was up by 4.8 per cent, or down by 2.5 per cent excluding acquisitions.
PMI's reported diluted earnings per share during the 12 months to the end of December, at $3.92, was up by 21.0 per cent, or by 17.3 per cent excluding the effects of currency changes, from those of the 12 months to the end of December 2009. Adjusted diluted earnings per share, at $3.87, were up by 17.6 per cent, or by 14.0 per cent excluding the effects of currency.
Reported net revenues, excluding excise taxes, were up by 8.7 per cent to $27.2 billion, or by 5.9 per cent excluding the effects of currency.
Reported operating companies' income was up by 11.6 per cent to $11.5 billion, or by 8.3 per cent excluding the effects of currency. Adjusted operating companies' income was up by 10.3 per cent to $11.5 billion, or by 7.0 per cent excluding the effects of currency.
Operating income was up by 11.6 per cent to $11.2 billion.
During the three months to the end of December, PMI's cigarette shipments, at 224,950 million, were increased by 3.1 per cent on those of the three months to the end of December 2009.
Shipments were up by 24.1 per cent to 70,702 million in its Asia region and by 2.4 per cent to 28,854 million in its LAC region.
Shipments in its EEMA region were down by 6.0 per cent to 72,047 million and shipments in its EU region were down by 5.4 per cent to 53,347 million.
During the fourth quarter of 2010, reported diluted earnings per share, at $0.96, were up by 20.0 per cent, or by 18.8 per cent excluding the effects of currency, on those of the fourth quarter of 2009. Adjusted diluted earnings per share, at $0.97, were up by 19.8 per cent, or by 18.5 per cent, excluding currency.
Reported net revenues, excluding excise taxes, were up by 4.8 per cent to $7.0 billion, or by 5.4 per cent excluding currency.
Reported operating companies' income was up by 12.3 per cent to $2.8 billion, or by 11.6 per cent excluding currency. Adjusted operating companies' income was up by 12.2 per cent to $2.8 billion, or by 11.5 per cent excluding currency.
Operating income was up by 12.4 per cent to $2.7 billion.
"With much of the developed world still grappling with high unemployment levels, heavy debt burdens and high budget deficits, we nevertheless posted a solid financial performance in the fourth-quarter and for the full year," said Louis C. Camilleri, chairman and CEO, presenting PMI's 2010 full-year and fourth-quarter results, and providing its forecast for this year.
"We surpassed our earnings per share and cash flow targets by a comfortable margin and, importantly, we grew our global market share for the third year in succession, driven by the improved performance of our flagship brand, Marlboro.
"Our strong and growing cash flow in 2010 underpinned our ability to generously reward our shareholders through higher dividends and ongoing share repurchase programs, generating a very robust total shareholder return for the full year of 27.2 per cent.
"Our confidence in our strong business momentum is such that we are now pleased to announce our 2011 full-year adjusted earnings guidance, excluding currency, to be up by approximately 10 per cent to 12.5 per cent, compared to $3.87 in 2010." Enditem
