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Philip Morris International

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Philip Morris International
Company typePublic (NYSE: PM)
IndustryTobacco
HeadquartersNew York, New York, USA
Key people
Louis C. Camilleri, Chairman & CEO
ProductsCigarettes
RevenueIncrease$27.208 billion USD (2010)
Increase$11.200 billion USD (2010)
9,048,000,000 United States dollar (2022) Edit this on Wikidata
Total assets41,733,000,000 United States dollar (2022) Edit this on Wikidata
Number of employees
78,300 (2010)
Websitewww.pmi.com

Philip Morris International (PMI) (NYSE: PM) is an international tobacco company, with products sold in over 160 countries. In 2007, it held a 15.6% share of the international cigarette market outside of the USA and reported revenues net of excise taxes of $22.8 billion and operating income of $8.9 billion.

Until a spin-off in March 2008, Philip Morris International was an operating company of Altria Group. It had its first day of trading on NYSE Euronext’s New York and Paris markets following its spin-off from Altria Group, Inc. as per March 31, 2008.[1] In its first quarter of operations as a separately owned and traded entity from Altria, PMI had sales revenue of $15.6 billion and net earnings of $1.86 billion as compared with $13.2 and $1.45 billion respectively for the first quarter in 2007.[2]

With its Operations Center based in Lausanne, Switzerland,[3] it owns 7 of the top 15 tobacco brands in the world [4] and has a mix of international and local products, which are produced in more than 50 factories around the world. PMI employs 75,600 people worldwide.[5]

Its main brands are Marlboro, Longbeach, L&M, Philip Morris, Red & White, Bond Street, Chesterfield, Parliament, Lark, A-Mild, Morven Gold, Muratti, DJI Sam Soe, Rög, Multifilter and Virginia Slims.

Board of Directors[6]

History

Founded in the 19th century, Philip Morris has grown into a worldwide organisation; today Philip Morris International alone employs more than 80,000 people. [citation needed]

1954: Philip Morris (Australia) becomes first affiliate of Philip Morris Companies Inc. outside of the U.S. [citation needed]

1955: Philip Morris Overseas is established as an international division. [citation needed]

1956: Philip Morris owned Marlboro mark from an unknown Swiss company

1957: The first Marlboro cigarettes manufactured outside the U.S. are produced following an agreement with Fabriques de Tabac Réunies in Switzerland. [citation needed]

1963: Fabriques de Tabac Réunies in Switzerland acquired by Philip Morris. [citation needed]

1967: Philip Morris Incorporated establishes Philip Morris Domestic, Philip Morris International (PMI) and Philip Morris Industrial, each responsible for three identifiable operations of its business. [citation needed]

1972: Marlboro becomes the world’s number one selling cigarette. [citation needed]

1972: Volume reaches 113 billion units as international expansion accelerates. [citation needed]

1972: License agreement with Japan Tobacco to begin manufacture of Marlboro in Japan. [citation needed]

1973: International cigarette sales reach 124 billion units, versus 123 billion in the USA. [citation needed]

1977: Licensingtorg, representing the Soviet tobacco Industry, and Philip Morris International sign agreement for local production of Philip Morris International brands. [citation needed]

1980: Philip Morris International opens its largest factory outside the U.S. in Bergen op Zoom in the Netherlands - today this factory is still PMI’s largest factory. [citation needed]

1987: Philip Morris International is incorporated as an operating company of Philip Morris Companies Inc.. [citation needed]

1989: Philip Morris International operating income tops US$1 billion for the first time. [citation needed]

1990: Philip Morris International moves from Park Avenue in NYC to Rye Brook, NY, USA. [citation needed]

1991: Philip Morris International volume tops 400 billion cigarettes. [citation needed]

1992: Philip Morris International acquires a majority holding in state-owned Czech Republic Tabak AS for US$420 million in the largest single investment by a U.S. company in central Europe at the time. [citation needed]

In the early 1990’s Philip Morris International participates in other state factory privatizations including in Kazakhstan, Lithuania and Hungary. [citation needed]

1995: Philip Morris International opens first factory in Asia in Seremban, Malaysia. [citation needed]

2000: Philip Morris International calls for regulation of the tobacco industry at the World Health Organization’s public hearings on the Framework Convention for Tobacco Control in Geneva, Switzerland. [citation needed]

2001: Philip Morris International Operations Center transfers from Rye Brook, NY, USA, to Lausanne, Switzerland. [citation needed]

2002: Philip Morris International operating income reaches US$5.7 billion, a more than hundredfold increase on 1970. [citation needed]

2003: Philip Morris International opens factory in the Philippines, PMI’s largest investment in Asia at the time. [citation needed]

2003: Philip Morris International’s product sales represent almost 14% of the global cigarette market outside of the USA [citation needed]

2003: Philip Morris International acquires majority stake in Papastratos Cigarette Manufacturing S.A., the largest cigarette manufacturer and distributor in Greece. [citation needed]

2003: Philip Morris International acquires 74.22% of DIN Fabrika Duvana A.D. Niš in Serbia, as of December 2007 this holding was more than 80%. [citation needed]

2004: Philip Morris International re-enters the market in South Africa from which it withdrew in 1986 because of the apartheid regime. [citation needed]

2005: In May Philip Morris International acquires Coltabaco, the largest tobacco company in Colombia, for a cost of $300 million. [citation needed]

2005: In the same month Philip Morris International acquires 98% of the shares of PT HM Sampoerna Tbk, the largest Indonesian tobacco company, for $ 4.8 billion. [citation needed]

2005: Philip Morris International takes back license for Marlboro in Japan from JTI [citation needed]

2005: In December Philip Morris International announces an agreement with the China National Tobacco Company (CNTC) for the licensed production of Marlboro China and the establishment of an international equity joint venture outside of China. [citation needed]

2006: In the fourth quarter of 2006, Philip Morris International purchased from British American Tobacco the Muratti and Ambassador trademarks in certain markets, as well as the rights to L&M and Chesterfield in Hong Kong, in exchange for the rights to Benson & Hedges in certain African markets and a payment of $115 million. [citation needed]

2006: In November 2006, Philip Morris International exchanged its 47.5% interest in E. León Jimenes, C. por. A., or ELJ, which included a 40% indirect interest in ELJ’s beer subsidiary, for 100% ownership of ELJ’s cigarette subsidiary, Industria de Tabaco León Jimenes, S.A., or ITLJ, and $427 million of cash. As a result of the transaction, Philip Morris International now owns 100% of the cigarette business and no longer hold an interest in ELJ’s beer business. [citation needed]

2006: Year-end volume stands at 831.4 billion, operating income at US$8.4 billion and global market share at 15.4% [citation needed]

2007: Philip Morris International acquires an additional 50.2% stake in Lakson Tobacco Company, Pakistan, bringing its total holding to approximately 98%. [citation needed]

2007: In November Philip Morris International acquired an additional 30% stake in the Mexican tobacco business from Grupo Carso, S.A.B. de C.V., or Grupo Carso, which increased its ownership interest to 80%, for $1.1 billion. After this transaction was completed, Grupo Carso retained a 20% stake in the business. Philip Morris International also entered into an agreement with Grupo Carso which provides the basis to potentially acquire, or for Grupo Carso to potentially sell to PMI, Grupo Carso’s remaining 20% in the future. [citation needed]

2007: Year-end volume stands at 850 billion, operating income at US$8.9 billion and global market share at 15.6% [citation needed]

2008: Philip Morris International spins off from Altria, becoming the world's leading international tobacco company and the third most profitable international consumer goods company[citation needed]

2008: PMI purchased the fine cut trademark Interval and certain other trademarks in the other tobacco products category from Imperial Tobacco Group PLC for $407 million. [citation needed]

2008: In October, PMI acquired all outstanding shares of Rothmans Inc, located in Canada, for CAD $2.0 billion ($1.9 billion), taking full ownership of Rothmans, Benson & Hedges

2009: Swedish Match and Philip Morris International announced global joint venture to commercialize smokefree tobacco products [citation needed]

2009: PMI acquired Swedish Match South Africa for $222 Million. SMSA is the market leader in the South African pipe tobacco and snuff categories [citation needed]

2009: PMI announced agreement to purchase Colombia's Protabaco for $452 Million [citation needed]

2010: PMI announced that Philip Morris Philippines Manufacturing Inc. (PMPMI), an affiliate of PMI, and Fortune Tobacco Corporation (FTC), have signed an agreement to unite their respective business activities by transferring selected assets and liabilities of PMPMI and FTC to a new company to be called PMFTC, with each party holding an equal economic interest.

Charitable giving

The company says it gives $25 million per year through its own in-house charitable giving department to charitable causes worldwide including domestic violence, emergency housing, education, combating extreme poverty, teaching sustainable agriculture techniques in Africa and so on. [7]

Controversies and public health disputes

In June 2011, Phillip Morris International announced it was using ISDS provisions in the Australia-Hong Kong Biliateral Investment treaty (BIT) to demand compensation for Australia's plain cigarette packaging anti-smoking legislation, despite the fact the legislation is non-discriminatory and addresses a significant public health problem.[8] A Reuters report published in the Sydney Morning Herald cited legal opinion that the case would fail "...as intellectual property rights agreements give governments the right to pass laws to protect public health." The company has also lobbied against Uruguay's strong anti-smoking laws. [9] Philip Morris International has announced an overhaul of its human rights protections of tobacco workers in Kazakhstan and 30 other countries after critical reports.[10]

Government of Pakistan issued notice to Philip Morris

The Director General of Health Services Academy, Government of Pakistan and in charge of Tobacco Control Cell, Dr Asad Hafeez has issued notice to Philip Morris Pakistan for illegally advertising cigarette in some section of print media so that anti-tobacco ordinance could be implemented. According to President’s ordinance titled “ The Prohibition of Smoking in Enclosed Places and Protection of Non-Smokers Health Ordinance, 2002”, no person or company shall advertise tobacco and tobacco products in any media, in any place and any public service vehicle government. But Philips Morris Pakistan has violated government rules, regulations and guidelines and published huge advertisements in some sections of national media.[11]

Government of Pakistan caught Philip Morris for tax evasion

Leading business newspaper of Pakistan "Business Recorder" reported that a leading manufacturer of cigarette of Pakistan evaded millions of rupees taxes. According to officials of Federal Board of Revenue, Government of Pakistan, Philip Morris Pakistan (Former Lakson Tobacco Company) has evaded taxes by short payment of federal excise duty, sales tax and for massive tax evasion in their imported brand Marlboro to the tune of millions on the import of cigarettes. Government of Pakistan also fined Philip Morris Pakistan for this illegality.[12][13]

References

  1. ^ http://www.nyse.com/events/1206440262533.html
  2. ^ PMI 1Q2008 Earnings Release via Wikinvest
  3. ^ "Where to find us." Philip Morris International. Retrieved on 19 October 2009.
  4. ^ "PMI Factsheet" (PDF). PMI. Retrieved 19 December 2011.
  5. ^ http://www.philipmorrisinternational.com/PMINTL/pages/eng/ourbus/Our_employees.asp
  6. ^ Philip Morris International Board of Directors
  7. ^ "Our Charitable Giving Program". PMI. Retrieved 19 December 2011.
  8. ^ Klya Tienhaara and Thomas Faunce Gillard Must Repel Big Tobacco's Latest Attack. Canberra Times 28 June 2011 http://www.canberratimes.com.au/news/opinion/editorial/general/gillard-must-repel-big-tobaccos-latest-attack/2209168.aspx
  9. ^ Rory Carroll. Urguay Bows to pressure over anti-smoking legislation. Guardian 27 July 2010 http://www.guardian.co.uk/world/2010/jul/27/uruguay-tobacco-smoking-philip-morris
  10. ^ Human Rights Watch May 22 2011 http://www.hrw.org/en/news/2011/05/09/kazakhstan-philip-morris-international-overhauls-labor-protections
  11. ^ http://www.onlinenews.com.pk/details.php?id=186184
  12. ^ http://www.brecorder.com/agriculture-a-allied/single/624/183/1254532/?date=2011-11-24
  13. ^ http://www.onepakistan.com/finance/news/taxation/1947-fbr-issues-notices-to-a-tobacco-company-for-tax-evasion.html

External links

http://www.brecorder.com/general-news/single/599/172/1253177/

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