Virginia | 1-33708 | 13-3435103 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
120 Park Avenue, New York, New York | 10017-5592 | |||
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01. | Regulation FD Disclosure. |
Item 9.01. | Financial Statement and Exhibits. |
PHILIP MORRIS INTERNATIONAL INC. | ||
By: | /s/ JERRY WHITSON | |
Name: | Jerry Whitson | |
Title: | Deputy General Counsel and Corporate Secretary |
Exhibit No. | Description | |
99.1 | Philip Morris International Inc. Press Release, dated September 29, 2016 (furnished pursuant to Item 7.01) |
PRESS RELEASE | ||||
Investor Relations: | Media: | |||
New York: +1 (917) 663 2233 | Lausanne: +41 (0)58 242 4500 | |||
Lausanne: +41 (0)58 242 4666 |
• | PMI revises for currency only, and narrows, its 2016 full-year reported diluted EPS forecast to a range of $4.53 to $4.58, at prevailing exchange rates, versus $4.42 in 2015. Excluding an unfavorable currency impact, at prevailing exchange rates, of approximately $0.35 for the full-year 2016, the diluted EPS range represents a projected increase of approximately 10.5% to 11.5% versus adjusted diluted EPS of $4.42 in 2015. |
• | This forecast does not include any share repurchases in 2016. |
• | The adjusted diluted EPS of $4.42 in 2015 is calculated as reported diluted EPS of $4.42, plus a $0.03 per share charge related to asset impairment and exit costs, less a $0.03 per share benefit related to discrete tax items. |
• | This forecast excludes the impact of any future acquisitions, unanticipated asset impairment and exit cost charges, future changes in currency exchange rates, and any unusual events. Factors described in the Forward-Looking and Cautionary Statements section at the end of this release represent continuing risks to these projections. |
• | For the full-year 2016, PMI forecasts a total cigarette industry volume decline of 2.0%-2.5%, excluding China and the U.S.; and |
• | For the full-year 2016, PMI anticipates its cigarette shipment volume, excluding China and the U.S., to decline in line with its August year-to-date decline of 3.9%. |
• | PMI expects its currency-neutral adjusted diluted EPS in the third quarter of 2016 to be flat to slightly up versus the third quarter of 2015; |
• | PMI continues to anticipate significant currency-neutral adjusted diluted EPS growth in the fourth quarter of 2016; |
• | PMI continues to anticipate a full-year 2016 pricing variance of around 6% of 2015 net revenues; |
• | Until 2018, PMI continues to target net revenues and adjusted OCI growth, excluding currency and acquisitions, of 4%-6% and 6%-8%, respectively, and, in the absence of share repurchases, annual currency-neutral EPS growth modestly above its target OCI results; |
• | For the full-year 2016, PMI expects its total cost base, including RRPs, to increase by approximately 1%, excluding currency; |
• | Going forward, PMI expects its total cost base, including incremental costs related to the continued roll-out of RRPs, to increase by approximately 1%-3%, excluding currency; |
• | For the full-year 2016, PMI expects to exceed its annual adjusted OCI growth target of 6%-8%, excluding currency; |
• | PMI envisages being able to revisit its currency-neutral net revenue and adjusted OCI growth targets once, as anticipated, RRPs become accretive to its bottom line in 2018; |
• | PMI targets Regional annual average adjusted OCI growth, excluding currency and RRPs, over the mid to long-term of: |
◦ | Mid single-digit in the EU; |
◦ | Low double-digits in EEMA; |
◦ | High single-digit in Asia; and |
◦ | High single-digit in Latin America & Canada; |
• | To accelerate its RRP capacity, PMI increases its full-year 2016 anticipated capital expenditures by an $100 million to $1.2 billion and anticipates cigarette-related capital expenditures to be at levels generally offset by depreciation; |
• | Reflecting further incremental investment behind RRP capacity, PMI anticipates capital expenditures of approximately $1.5 billion in 2017; and |
• | PMI expects its free cash flow in 2016 to be modestly above the $6.9 billion level of 2015, calculated as net cash provided by operating activities of $7.9 billion less capital expenditures of $1.0 billion. |
• | PMI continues to expect RRPs to approach break-even OCI in 2017 and to start contributing positively to OCI in 2018; |
• | PMI reconfirms its target of 30 to 50 billion units in incremental volume from RRPs, net of switching of its existing adult consumers, which would generate additional OCI of $0.7 billion to $1.2 billion by 2020; and indicates its increasing confidence in reaching the upper end of this range; |
• | PMI announces that it is expanding its planned annual RRP production capacity to 50 billion units, up 20 billion units from its initial planned capacity of 30 billion units, by the end of 2017; |
• | PMI anticipates having approximately 7 billion units of heated tobacco stick capacity available for commercialization in 2016 and reaching installed annual capacity of approximately 15 billion units by the end of the year; |
• | PMI announces that the estimated national market share of HeatSticks in Japan reached 3.3% August quarter-to-date; |
• | PMI confirms its plans to introduce iQOS into key cities in 20 markets by the end of 2016, and announces its expectation to be present in key cities in 30-35 markets by the end of 2017; |
• | PMI remains on track to file with the U.S. FDA its Modified Risk Tobacco Product Application by the end of 2016 and plans to file a Premarket Tobacco Application in early 2017; |
• | PMI is preparing to conduct a city test of its Platform 2 RRP in early 2017 and remains on track to conduct a city test of its Platform 3 RRP in the second half of 2017; |
• | PMI announces the release of its first “next-generation” Platform 4 RRP, which leverages new proprietary vaporization technology (“MESH”), and its plan to conduct a city test in the United Kingdom at the end of 2016; and |
• | PMI introduces its new RRP product brand architecture, leveraging the leadership of iQOS to encompass all four RRP product platforms. |
5
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