Philip Morris International Inc. (NYSE:PM) released the results from its most recently completed quarter, posting adjusted earnings of $1.41 per share on net revenue of $7.8 billion. Analysts had been expecting earnings of $1.24 per share on $7.52 billion in revenue.

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Reported earnings were $1.17 per share, compared to $1.30 in the same quarter a year ago. That includes a negative impact of 15 cents per share due to currency exchange.

Breaking down Philip Morris’ earnings

The cigarette maker reported that declining shipment volumes in most of its regions drove its decline in profits this year. Philip Morris reported a 2.7% decline in volume to 222.8 billion units during the second quarter. The only major region in which the company’s volumes did not decline was the European Union. The company saw the biggest percentage declines in Asia.

For the six months so far this year, reported earnings were $2.35 per share, a 23 cent decline year over year. Excluding a 31 cent per share negative currency impact, earnings per share would be up by 8 cents. Adjusted earnings per share for the first six months are $2.60. Excluding the currency impact, adjusted earnings would be up by 32 cents per share.

So far this year, the cigarette maker shipped 418.8 billion units, a 3.5% decline. Reported net revenues, excluding excise taxes, were $14.7 billion, a 5.1% decline. Excluding negative impacts, net revenues rose 1.5%.

Philip Morris reaffirms guidance

The cigarette maker said it still expects earnings per share for this year to be between $4.87 and $4.97 per share. Philip Morris expects adjusted earnings per share to increase by between 6% and 8%.

“For the second half of this year, we anticipate more challenging quarterly comparisons, particularly in the fourth quarter — which, in 2013, saw currency-neutral adjusted diluted earnings per share grow by 19.4% — due to known business challenges, particularly in Asia, the timing of investments behind the commercialization of our Reduced-Risk Products and the roll-out of Marlboro Red 2.0, as well as costs related to our manufacturing footprint optimization initiatives,” Philip Morris CEO Andre Calantzopoulos said in a statement.

Philip Morris also repurchased 11.6 million shares for $1 billion during the second quarter. During the first six months, the company bought back 27 million shares for $2.25 billion.