Philip Morris Profit Higher

Cigarette maker Philip Morris International Inc. said Thursday its second-quarter net income fell 4 percent, despite higher prices, as the company sold fewer cigarettes. The seller of Marlboro and other cigarette brands overseas said changes in currency values hurt profit in the April-June quarter, and cut its earnings guidance for the year because of the stronger dollar. Net income was $2.32 billion, or $1.36 per share, in the second quarter, down from $2.41 billion, or $1.35 per share, a year ago. The latest quarter's profit beat Wall Street estimates by a penny, according to FactSet. When the U.S. dollar is rising against the world's other currencies, companies that sell goods internationally take a hit when converting revenue in foreign currencies back into the dollar. That effect is particularly strong for Philip Morris International because it does all its business overseas. Excluding excise taxes, revenue fell about 2 percent to $8.1 billion, despite higher prices. Analysts expected revenue of $8 billion. Philip Morris International said the number of cigarettes it shipped fell about 1 percent to 238.3 billion. The company is the world's second-biggest cigarette seller, trailing state-controlled China National Tobacco Corp.