Philip Morris, the food and tobacco giant, said on Wednesday that fourth quarter profits rose 7.5 per cent and anticipated that earnings would grow in the following year.

Earnings were 87 cents a share compared with last year's 77 cents. Net income was $1.95bn compared with last year's $1.81bn. The results were one cent below analysts' expectations of 88 cents for the fourth quarter.

The company said that earnings per share for 2001 would be in a range of between 9-11 per cent. The Financial Times reported that Philip Morris was trading down $1, at $43.91, by early afternoon in New York.