The European Cigarette Industry Is Getting Slammed By The Euro Crisis

Conventional wisdom would suggest that smoking is a business that’s immune to economic downturns.  Some might argue that smoking might actually rise during periods of economic distress.

However, the folks at Philip Morris International (PMI) would argue otherwise.  Earlier this week, they said cigarette volumes fell 1.2 percent in Q2 2012. The main reason for this was weakness in the European economy.

PMI sells Philip Morris cigarette brands like Marlboro, Parliament, and Chesterfield outside of the U.S.

Below are two slides from the presentation PMI management gave when they released their earnings announcement.