Philip Morris International's shipment volume during the second quarter of 2011, at 241.2 billion, was increased by 0.1 per cent on that of the second quarter of last year.
The increase was due entirely to its Asia-region performance where volume was up by 7.5 per cent to 84.0 billion.
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Volume was down by 3.3 per cent to 75.3 billion in its Eastern Europe, Middle East & Africa (EEMA) region, down by 3.1 per cent to 57.2 billion in its EU region, and down by 4.8 per cent to 24.6 billion in its Latin America & Canada (LA&C) region.
Marlboro's volume was increased by 0.2 per cent to 78.1 billion, with volume up by 5.9 per cent in Asia, notably in Indonesia, Japan (where Japan Tobacco's operations were disrupted following the March 11 earthquake and tsunami), South Korea and Vietnam, and up by 0.9 per cent in the EEMA, notably in Algeria. Volume was down by 3.3 per cent in the EU, reflecting mainly lower total markets and share, primarily in Portugal and Spain, and down by 2.8 per cent in the LA&C region, notably in Mexico where there was a major tax increase.
L&M's volume was up by 3.1 per cent to 23.9 billion, driven by growth of 5.4 per cent in the EU and by 3.6 per cent in the EEMA, while Parliament's volume increased by 4.9 per cent to 10.3 billion and Lark's volume grew by 10.2 per cent to 10.1 billion, due primarily to growth in Japan.
Bond Street's volume was down by 2.3 per cent to 12.0 billion, due mainly to declines in Turkey and Ukraine, partly offset by growth in Russia and Kazakhstan, while Chesterfield's volume was down by 4.9 per cent to 9.8 billion, with declines, primarily in Spain and Ukraine, partly offset by growth that was realized mainly in Portugal.
The volume of PMI's other tobacco products (OTP), in cigarette equivalents, excluding volume from acquisitions, grew by 7.9 per cent, with notable increases in Belgium, France and Germany.
Overall, the company's total cigarette and OTP volume was increased by 0.2 per cent, excluding acquisitions.
PMI reported that its share performance was stable or registered growth in a number of key markets, including Algeria, Austria, Belgium, Canada, Egypt, France, Germany, Hong Kong, Indonesia, Japan, Korea, Mexico, the Netherlands, the Philippines, Singapore, Thailand and Turkey.
Meanwhile, PMI's volume during the six months to the end of June, at 449.1 billion, was increased by 0.8 per cent on that of the first half of last year.
The increase was due entirely to its Asia-region performance where volume was up by 10.4 per cent to 156.1 billion.
Volume was down by 2.2 per cent to 139.0 billion in its EEMA region, down by 5.1 per cent to 105.7 billion in its EU region, and down by 5.2 per cent to 48.3 billion in its Latin America & Canada region.
PMI's reported diluted earnings per share during the second quarter of 2011, at $1.35, were up by 26.2 per cent on those of the second quarter of last year, or by 14.0 per cent excluding the effects of currency. Adjusted diluted earnings per share of $1.34 were up by 34.0 per cent or by 21.0 per cent excluding the effects of currency.
Reported operating companies' income was up by 27.1 per cent to $3.8 billion, or by 16.5 per cent excluding the effects of currency. Adjusted operating companies' income was up by 27.2 per cent to $3.8 billion, or by 16.5 per cent excluding the effects of currency.
Operating income was up by 27.7 per cent to $3.7 billion.
Commenting on the results, chairman and CEO, Louis C. Camilleri, said PMI's strong second-quarter results were testament to the company's "continued growth momentum, particularly in Asia, strong pricing in numerous key markets and our excellent executional capability, as exemplified by our performance in Japan.
"Our progress is such that we are again raising our EPS guidance for 2011, reflecting our confidence in the future," he added.
Bonnie Herzog, managing director of Beverage, Tobacco & Consumer Research at.
Wells Fargo Securities said that PMI's underlying, organic and currency neutral growth was impressive in the second quarter with top-line up 10.1 per cent, operating margins up 250 basis points to 44.6 per cent, operating income growth of 16.5 per cent, and EPS growth of 21 per cent.
"We think PM is strongly positioned to capture further share gains, grow profits at a healthy rate and generate low double-digit EPS growth on a sustainable basis," she added. Enditem
