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Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO) -- Ignore unavailable to you. Want to Upgrade?

To: mugicha who wrote (4052)	6/28/1999 8:31:00 PM
From: Theo Karantsalis	Respond to of 6439

Philip Morris (MO:NYSE) told analysts at a New York meeting that volume and profits from its international tobacco business will not meet full-year expectations. Second-quarter volume is expected to drop 6% and full-year volume is expected to drop 4%. The company cited the impact of duty-free sales and a weak euro. The company said it sees full-year earnings at $3.30 a share, 2 cents below the 12-analyst First Call forecast but above the year-ago $3.17. From The Street.com

To: mugicha who wrote (4052)	6/28/1999 8:35:00 PM
From: Theo Karantsalis	Read Replies (1) \| Respond to of 6439

Monday June 28, 7:58 pm Eastern Time FOCUS - Philip Morris fights demons, trumpets business (updates with details, closing stock price, adds byline) By Amy Collins NEW YORK, June 28 (Reuters) - Philip Morris Cos. Inc.(NYSE:MO - news), fighting back against what its top executive called an ''unprecedented campaign of demonization'' related to anti-smoking campaigns and tobacco-related lawsuits, on Monday said its 1999 earnings would fall slightly short of current expectations but that its business segments were strong. Philip Morris held its first meeting for analysts and investors in about two years, warning that 1999 calendar year earnings per share would be about $3.30, just below current estimates of $3.32. The company earned $3.17 per share in 1998. The company said it expected a hit this year of $150 million to $170 million because of the declining euro. But Chairman and Chief Executive Geoffrey Bible said once the company completes this transition year for its tobacco businesses, it expects earnings per share growth of 11 to 13 percent for 2000 through 2003. News from the meeting came after the market closed for the day. Philip Morris ended Monday down 19 cents at $41 on the New York Stock Exchange. The company's biggest segments, its domestic and international tobacco operations, are in the midst of a ''transition'' year, Philip Morris said. International tobacco volumes will be down 4 percent for the year and income is expected to fall short of expectations on the lower volume, the impact of duty-free sales and a weak euro, Paul Hendrys, president and chief executive of Philip Morris International Inc., said at the meeting. Meanwhile, Philip Morris said it will continue to focus on its premium domestic brands and will expand test marketing of Accord, a low-smoke cigarette used with an electronic lighter. Mike Szymanczyk, president and chief executive of Philip Morris USA, said after a transitional period he expects to see industry volume declines of 1 to 2 percent and expects Philip Morris to gain a half percent market share annually, with operating income growth of 4 to 6 percent. He did not give a specific time period for the growth. Philip Morris, which also owns Kraft Foods and Miller Brewing, said it expected 2 to 3 percent volume increase in its domestic food business from 1999 to 2001. Operating income should rise between 6 and 7 percent over that same period. For international foods, Kraft expects volume and operating income growth of less than 1 percent during 1999, depressed by the Russian market. Miller Brewing Co., the No. 2 beer maker in America, expects 1 to 3 percent volume growth for 1999. Bible said the company examined the possibility of splitting up the companies' food tobacco and beer operations -- similar to the recent split of R.J. Reynolds Tobacco Holdings Inc. (NYSE:RJR - news) and Nabisco Group Holdings (NYSE:NGH - news) -- but found ''no compelling evidence'' to do so. As for the biggest problem facing the company, tobacco litigation, Bible said he expects to win most if not all pending cases. Murray Bring, the company's general counsel, added, ''We are planing to make significant changes in our strategy'' to counter jury anger following two large West Coast verdicts. He did not elaborate. A federal judge in North Carolina is expected to rule this week on whether Philip Morris used its market dominance to try to monopolize prime retail space in stores across the country. There was no decision Monday, a court clerk said. Philip Morris said it intends to keep raising its dividend at least in line with earnings per share growth and prefers to accelerate its stock repurchases when possible. The company said it likely would look to implement a larger share buyback plan when its three-year, $8 billion share repurchase program is completed. The company said that from 1999 through 2003, its businesses should generate some $55 billion in cumulative operating cash flow, which will be used to ''grow the business, guard the company's credit ratings and enhance value for shareholders.''