US tobacco conglomerate Philip Morris warned investors Thursday that its profits would be severely below forecast, attributing this to an upsurge in cigarette smuggling and continued depletion in the number of smokers.

The tobacco giant admitted in a statement issued yesterday evening after the New York Stock Exchange had closed, that profits for the current fiscal would rise by between only 3% to 5% instead of the previously forecast 9%-11%.

PM shares lost $3.65 to settle at $37.82 in after hours trading.

Data sourced from: Times Online (UK); additional content by WARC staff