NEW YORK - Philip Morris International Inc. posted a 28 percent gain in second-quarter profit "after raising cigarette prices in countries such as Australia and Mexico," reports Bloomberg.

"Net income advanced to $1.98 billion, or $1.07 a share, the New York-based company said today in a statement. Excluding some items, earnings were $1, compared with the 97-cent average of estimates compiled by Bloomberg. The company also raised its full-year profit forecast," notes the news source.

The price increases have helped Philip Morris make up for falling shipments in struggling economies of the European Union, such as Greece and Spain, as well as higher taxes.

"Higher prices more than offset the negative effect of volume," Thomas Russo, a partner at Gardner Russo & Gardner, told Bloomberg.

Philip Morris?? cigarette shipments totaled 241 billion cigarettes, while shipments dropped 6.2 percent in the European Union but rose 35 percent in Asia.

"Our broad geographic footprint continues to serve us well, enabling us to deal with weakness arising in markets where economic recovery remains subdued," Philip Morris CEO Louis Camilleri said in the statement.

Meanwhile, the news source writes that Reynolds American Inc. also raised its full-year profit forecast, noting that excluding some items, "earnings will be at least $4.90 a share, compared with a previous minimum of $4.80."