Philip Morris Picks Hendrys to Head International Unit

Philip Morris Cos., the world’s largest cigarette company, said Friday it named Paul Hendrys to head its fast-growing international tobacco unit, replacing Andreas Gembler.

Gembler, 55, is a 30-year veteran at Philip Morris and is retiring for personal reasons, the company said. He had headed the unit since April 1997.

Hendrys, 51, joined Philip Morris in 1980 in Germany, and built it into one of the company’s most profitable markets outside the U.S. His appointment becomes effective Feb. 1.

Neither executive was available for comment.

Gembler oversaw Philip Morris’ entry into Eastern Europe, one of its fastest-growing markets for Marlboro, L&M; and the other company brands. International markets represent the New York-based company’s best opportunities for growth, since smoking rates in the U.S. have fallen for three decades. The $26.3-billion unit is the company’s fastest-growing in profitability and in sales, outpacing its U.S. tobacco, Kraft foods and Miller brewing units.

Hendrys became managing director of Philip Morris’ German unit in 1990 and was later appointed to lead its European Union unit.

Philip Morris Chairman Geoffrey Bible called Gembler “one of the true heroes of our international tobacco growth,” saying he accepted Gembler’s resignation with “great regret.”

Hans Fluri, 46, will succeed Hendrys as president of Philip Morris’ European Union business. Fluri has headed the company’s Eastern European unit.

Shares of Philip Morris rose 19 cents to close at $55.56 on the NYSE.