"We understand that this was not only a terrible mistake, but that it was wrong," said Steven Parrish, a Phillip Morris senior vice president. "To say it's totally inappropriate is an understatement."

The study, which was conducted by the research company Arthur D. Little International, analyzed government data of the Czech Republic. The study indicated that the Czech Republic netted $146 million from the tobacco industry from duties and taxes paid by consumers, importers, and tobacco businesses. The research noted that the government's financial gain outweighed the costs of health care, lost working days, and fires caused by cigarettes.

The study further stated that early deaths from smoking resulted in "indirect positive effects," such as savings on health care, pensions, welfare, and housing for the elderly.

Because of the negative response over the tone of the study, Philip Morris has canceled similar studies in Poland, Slovakia, Hungary and Slovenia.

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