Philip Morris Cuts FY14 EPS Guidance - Quick Facts

(RTTNews) - Philip Morris International Inc. (PM) announced that the company now expects its 2014 full-year reported earnings per share to be in a range of $4.87 to $4.97, compared to a range of $5.09 to $5.19 as previously announced on May 7, 2014. In the prior year, the company reported an earnings per share of $5.26.

On an adjusted basis, earnings per share are projected to increase in the range of 6% to 8% from adjusted earnings per share of $5.40 in 2013.

Analysts polled by Thomson Reuters expect the company to report profit per share of $5.25 in fiscal 2014. Analysts' estimates typically exclude special items.

On April 4, 2014, the company announced the initiation by its affiliate, Philip Morris Holland B.V., 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. the company 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.

The company also noted that its forecast includes a productivity and cost savings target of $300 million and a share repurchase target of $4.0 billion.

"2014 is proving to be a complex and truly atypical year for PMI. 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%," said André Calantzopoulos, CEO of Philip Morris.

The company also announced its acquisition of 100% of Nicocigs Limited, a U.K.-based e-vapor company whose principal brand is Nicolites.