Philip Morris Announces First Quarter international results

[Robert Weissman <rob@essential.org>]

Source: Philip Morris Comapny Press Release, "Philip Morris Announces Firts
Quarter 1998 Results," 21 April 1998

International Tobacco 

"Operating income for the tobacco business of Philip Morris International
(PMI) grew a strong 11.3% to $1.4 billion, driven by higher pricing and
volume, despite an unfavorable currency impact of $111 million, and a
difficult business environment in Asia. 

Volume of 200 billion cigarettes was up a solid 4.7%, driven by aggregate
gains for PMI's portfolio of major international brands -- Marlboro, L&M,
Bond Street, Philip Morris, Parliament, Chesterfield, Merit, Lark and
Virginia Slims. PMI achieved its growth despite weaker business conditions
in Asia, primarily in Korea and Indonesia, and an unfavorable comparison in
Japan, where first-quarter 1997 volume benefited from significant trade
buying in advance of a tax-driven retail price increase. 

PMI recorded strong volume advances in a number of major markets, including
Germany, Italy, France, the Benelux countries, Spain, Poland, the Czech and
Slovak Republics, Eastern Europe, Turkey, Australia, the Philippines, Mexico
and Argentina. PMI gained share in virtually all of its major markets.  

Premium-priced Marlboro, the world's most popular cigarette, continued to
post  strong results, with good volume and share growth in most major
markets. The brand scored double-digit volume gains in Spain, Austria, the
Czech Republic, Eastern Europe, the Middle East, Turkey, the Philippines,
Thailand and Mexico. Solid volume growth was recorded in Germany, Italy,
France, the Benelux countries, Portugal, Greece and Argentina. In Japan,
Marlboro volume and share advanced strongly, and in Brazil, Marlboro volume
and share achieved record levels, benefiting from its price realignment in
the fourth quarter of 1997. 

L&M, Parliament and Chesterfield turned in stellar results, each posting
double-digit volume growth. L&M strengthened its position as the world's
third most popular brand with impressive growth in Spain, Poland and Eastern
Europe. Parliament grew dramatically in both Turkey and Eastern Europe due
to the success of the rounded-corner box format, and Chesterfield grew
strongly in Spain and Eastern Europe. Local brands in Central and Eastern
Europe also performed well. "