26.06.2014 - Philipp Morris lowered its profit forecast
One of the largest cigarette manufacturers in the world Philipp Morris worsened profit forecast for 2014 due to the unfavorable rising of the exchange rate of Australian dollar. In addition, the company is experiencing difficulties due to weak growth in Europe and struggling with the long-known problems in Asia. As a result, the company said they expect 4,87-4,97 dollars earnings per share against the previous forecast made in May at 5,09-5,19 dollars.
An additional factor that plays into the hands of investors is the payment of 495 million dollars in fines in connection with the closing of production in the Netherlands. Considering these factors, as well as progress in struggle against smoking in the world, we expect worsening of growth prospects of the company's shares in the future, but it's recommended to hold the stock in the long-term investment portfolio in connection with the ongoing strong performance.