Philip Morris International, Inc. (NYSE:PM) Q1 2017 Earnings Conference Call - Final Transcript
Apr 20, 2017 • 09:00 am ET
have approximately 75 billion units in total capacity available for commercializations in 2018.
In support of these plans, we recently announced our decision to convert our cigarette factory in Greece to heated tobacco unit production. Consequently, we are increasing our planned capital expenditures in 2017 to $1.6 billion from the $1.5 billion previously communicated. We continue to target operating cash flow of $8.5 billion this year.
In conclusion, our first quarter results generally came in as expected, though cigarette volume was lower than anticipated. Our key assumptions for the full year remain intact, namely currency-neutral net revenue growth above 6%, supported by favorable pricing as well as higher heated tobacco unit and iQOS device sales. To build upon the exceptional performance of iQOS, we are making significant investments behind both commercialization and the expansion of heated tobacco unit capacity.
Importantly, we currently estimate that approximately 1.8 million adult consumers have already quit smoking cigarettes and switched to iQOS. Finally, the full year outlook for our business remains strong. Our 2017 EPS guidance reflects a growth rate of approximately 9% to 12%, excluding currency and the favorable tax item, compared to adjusted diluted EPS of $4.48 in 2016.
Thank you, and I will be happy now to answer your questions.