Robust Tobacco Unit Leads Philip Morris Cos. to a 15% Profit Increase

Philip Morris Cos. said Tuesday that its earnings climbed 15% in the second quarter, led by strong profit gains from its industry-leading tobacco business.

The maker of Marlboro cigarettes said profits rose from its food business, which has brands like Kraft, Oscar Mayer and Maxwell House. But income slipped at its Miller Brewing business.

Overall, Philip Morris earned $1.62 billion, or $1.97 a share, compared with $1.41 billion, or $1.67 a share, a year ago, matching Wall Street estimates.

Tobacco sales rose 8.8% overall and the best-selling brand Marlboro had an 8% volume gain.

In its food business, worldwide income rose 7.6% to $1. billion as revenue edged up 0.6% to $7. billion.

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Eastman Kodak said its second-quarter profit jumped 17% to $440 million, boosted by robust sales of film, cameras and photofinishing services.

Kodak’s profit amounted to $1.30 a share, up from $377 million, or $1.11 cents a share, in the same period last year. The results were better than the $1.22 forecast by Wall Street analysts.

Profit was helped by increased sales of motion picture films, one-time-use cameras, digital products and the new Advantix line of cameras and film designed to make it easier for amateurs to take good pictures, Rochester, N.Y.-based Kodak said.

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The aerospace giant Rockwell International reported a 13% rise in fiscal third-quarter earnings, citing growth in its semiconductor and automation and aerospace businesses.

The Seal Beach-based company, perhaps best known as the former maker of space shuttles and the B-1 bomber, earned $223 million, or $1.02 per share. That compares with $197 million, or 90 cents per share, a year earlier.

The results excluded earnings from Rockwell’s Graphics Systems unit, which the company plan’s to sell to Stonington Partners Inc. for about $600 million. Including the unit, the company would have earned $229 million, or $1.04 per share, a 20% increase over the third quarter of 1995.

The results were in line with Wall Street expectations of $1.01 per share.

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Beverly Hills-based Hilton Hotels said second-quarter earnings rose 27% on strong results from its luxury hotels, including New York’s Waldorf-Astoria and the Chicago Hilton.

Net income rose to $59.2 million, or $1.20 a share, from profit from operations of $46.6 million, or 96 cents, a year earlier. In the 1995 quarter, a $6.3 million gain related to workers compensation resulted in net income of $52.9 million, or $1.09.

The results beat Wall Street’s expectations of $1.14 a share.

At a Glance:

Two large drug companies reported second-quarter earnings growth on rising sales of their well-known pharmaceuticals. Eli Lilly’s earnings climbed to $345.7 million, or 63 cents a share, compared with profit from continuing operations of $310. million, or 54 cents, in the year-earlier quarter. Johnson & Johnson said second-quarter earnings surged 20% to $791 million, or 60 cents a share, compared with $661 million, or 51 cents, in the year-earlier period.

Honeywell said second-quarter earnings rose to $83.3 million, or 66 cents per share, compared with $68.9 million, or 54 cents, in the year-ago period.

Sprint reported a rise in second-quarter earnings of $316.8 million, or 73 cents per share, compared to the year-ago results of $245.7 million, or 70 cents.

Ameritech said its second-quarter profit grew to $567 million, or $1.02 a share, compared with $504 million, or 91 cents, last year.

TRW said second-quarter earnings rose to $130.5 million, or $1.94 per share, versus $123.1 million, or $1.81, in the 1995 quarter.

Merrill Lynch said second-quarter earnings rose to a record $433 million, or $2.19 a share, from $282.8 million, or $1.40, for the year-ago quarter.

Caterpillar said its second-quarter earnings rose to $374 million, or $1.94 a share, compared to $323 million, or $1.62, in the same period last year.

Whirlpool reported unchanged second-quarter earnings of $52 million, or 70 cents a share.

360 Communications said it posted a second-quarter profit of $24.3 million, or 21 cents a share, compared with a loss of $758,000, or 1 cent, a year ago.

Archer-Daniels-Midland said higher grain prices cut fourth-quarter profit by more than a third to $143.6 million, or 28 cents per share, versus $225.6 million, or 42 cents, last year.

Rubbermaid said second-quarter earnings rose to $44.8 million, or 30 cents a share, from $28.8 million, or 18 cents, a year earlier.

Cummins Engine said second-quarter earnings fell to $44 million, or $1.10 a share, from $69 million, or $1.69, in the year-ago period.