Philip Morris reveals 5.4% profits rise

Philip Morris has reported a 5.4% rise in third quarter profits.

The company revealed underlying net earnings of £1.6bn, or $1.07 a share, compared with £1.6bn, or 99 cents a share, in the year-ago quarter.

Chairman Geoffrey Bible said "Domestic tobacco delivered solid income gains and our international tobacco business achieved volume growth and strong share gains in many key markets.

"Domestic tobacco delivered solid income gains and our international tobacco business achieved volume growth and strong share gains in many key markets."

The company said it remains confident that it will achieve of 9% growth in earnings per share.

At Philip Morris USA, the company's domestic tobacco business, revenues increased 8.1% to £1.1bn driven by higher pricing and an improved range of products.

Shipment volumes declined by 52.5 billion cigarettes or 2.8%.

The fall in shipments was due primarily to the timing of promotions shipped in June 2001 for July retail sales.