The Gap Between Altria and Philip Morris International

The United States dollar is performing exceptionally well against the Euro and Japanese Yen in particular, and other global currencies in general, as unease about Greece and other maladies throughout the rest of the world has pushed the U.S. dollar to highs not seen since the aftermath of the 9/11 terrorist attacks. A result is that there are huge disparities in the earnings per share figures of certain companies, depending on whether or not they generate a significant percentage of profits overseas.

Take something like Altria, for example. All of its profits are generated in U.S. dollars. That was part of the terms of the Philip Morris International spinoff in 2008. Altria owns a 27.3% stake in SABMiller, and the beer giant generates profits across the globe, although the payment to Altria is largely unaffected by currency fluctuations on this (it would amount to less than $50 million per year … Read the rest of this article!