Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Philip Morris International Inc.    PM

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Philip Morris To Cut Virginia Slims Brand Price In South Korea

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/13/2012 | 08:52pm CET

--Tobacco firm to trim price of Virginia Slims Superslims by 14% in South Korea as of April 23

--Philip Morris facing pressure from KT&G, the region's dominant player

--Price cut a setback for Philip Morris, which has shown a great ability to raise prices in various markets

 
   By John Kell 
   Of  
 

Philip Morris International Inc. (>> Philip Morris International Inc.) will cut the price of Virginia Slims Superslims cigarettes in South Korea, backtracking from a price increase enacted in February as the company faces pressure from competitor KT&G Corp. (033780.SE).

The tobacco company confirmed it would cut the price on Virginia Slims Superslims by 14% to 2,500 won ($2.21) per pack from KRW2,900, as of April 23. Prices of all other Philip Morris brands in South Korea will remain unchanged.

The price cut comes roughly two months after Philip Morris raised prices on Marlboro in South Korea by KRW200, to KRW2,700, and on Virginia Slims by KRW100. At the time, Philip Morris management conceded it was facing "ferocious" advertising by the region's dominant tobacco company, KT&G, which currently sells its Esse ultraslim brand at KRW2,500 per pack.

Strong demand in Asia has driven sales and earnings growth for Philip Morris, which makes brands such as Marlboro and L&M and derives all sales from outside the U.S. South Korea is a key market for the company as 2010 industry volume ranked above Italy, Germany and Spain, though below other Asian markets like Japan and the Philippines.

While the price decrease is a setback for Philip Morris, the company has shown a great ability to implement price increases in numerous markets it serves. In February, Philip Morris said about 70% of pricing actions taken in markets including Germany, Russia and Indonesia were included in the company's 2012 guidance.

Philip Morris in recent years has gained market share dramatically in South Korea, commanding 19.8% of the market at the end of 2011, far above 2006's level of 8.6%. While the region's total cigarette market dropped 0.6% last year to 90 billion units, Philip Morris's volume jumped 17% as Marlboro and Parliament gained share.

Shares of Philip Morris, which is due to report first-quarter earnings next week, were up 1.3% to $88.41 in recent trading Friday afternoon. The stock has gained 13% so far in 2012.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

Stocks mentioned in the article : Philip Morris International Inc.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on PHILIP MORRIS INTERNATIONA
06:11p PHILIP MORRIS INTERNATIONAL INC. : Other Events, Financial Statements and Exhibi..
02/16 PHILIP MORRIS INTERNATIONAL : Winston was most popular cigarette brand in Latvia..
02/15 PHILIP MORRIS INTERNATIONAL INC. : to Webcast Presentation at Consumer Analyst G..
02/14DJPHILIP MORRIS INTERNATIONAL : Thailand Slaps Philip Morris With More Tax Evasion..
02/14 PHILIP MORRIS INTERNATIONAL INC. : (PMI) Files Annual Report on Form 10-K
02/14 PHILIP MORRIS INTERNATIONAL : Management's Discussion and Analysis of Financial ..
02/14 PHILIP MORRIS INTERNATIONAL : Raises USD1 Billion in Private Placement of Notes ..
02/13 PHILIP MORRIS INTERNATIONAL : BIR sees P15B cigarette stamp revenue
02/13 EASTERN : EGM to discuss Philip Morris contracts late February
02/09 PHILIP MORRIS INTERNATIONAL : Summit on climate change, agriculture, environment..
More news
Sector news : Tobacco - NEC
02/16 FTSE retreats from one-month peak, mid-cap index snaps winning streak
02/09DJReynolds American Profit and Revenue Climb
02/07DJITC : Indian Government Sells 2% Stake in ITC for $997 Million
02/03DJALTRIA : Investigating Whether Recalled Products Were Tampered With -- 2nd Updat..
02/03DJALTRIA : Investigating Whether Recalled Products Were Tampered With--Update
More sector news : Tobacco - NEC
News from SeekingAlpha
02/20 Analysts Tag Stein Mart Top 'Safe' Sector Leader Dividend Dog For February
02/20 THE DIVIDEND GROWTH PORTFOLIO TO GRO : Is It Time To Stock Up On Cash?
02/20 RETIREMENT : Transitioning To The Distribution Phase - First Year In The Books
02/18 6 Reasons Why I Chose Altria Over Philip Morris International And So Should Y..
02/17 FDA tobacco advisory panel meeting set
Advertisement
Financials ($)
Sales 2017 28 057 M
EBIT 2017 11 517 M
Net income 2017 7 416 M
Debt 2017 24 677 M
Yield 2017 4,10%
P/E ratio 2017 21,68
P/E ratio 2018 19,62
EV / Sales 2017 6,61x
EV / Sales 2018 6,24x
Capitalization 160 817 M
More Financials
Chart PHILIP MORRIS INTERNATIONA
Duration : Period :
Philip Morris Internationa Technical Analysis Chart | PM | US7181721090 | 4-Traders
Full-screen chart
Technical analysis trends PHILIP MORRIS INT...
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 106 $
Spread / Average Target 2,4%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
André Calantzopoulos Chief Executive Officer & Director
Louis C. Camilleri Chairman
Antonio Marques Senior Vice President-Operations
Jacek Olczak Chief Financial Officer
Patrick Brunel Chief Information Officer & Senior Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
PHILIP MORRIS INTERNAT..13.30%160 817
BRITISH AMERICAN TOBAC..7.81%115 724
REYNOLDS AMERICAN, INC..8.37%86 597
IMPERIAL BRANDS PLC5.49%44 633
SWEDISH MATCH AB-4.35%5 962
ESSENTRA PLC4.97%1 585
More Results