Price Hike Boosts Lorillard Profits

Source from:  The Business Journal of the Greater Triad Area 04/28/2009

Lorillard Inc. on Monday reported first-quarter profits of $184 million, or $1.09 per share. That's up from the same period last year, when the Greensboro-based tobacco company reported earnings of $174 million, or $1 per share. Lorillard said its net sales for the first quarter were down slightly, at $917 million, compared to $921 million during the first quarter of 2008. The company said its wholesale shipment volume was also down as wholesalers and retailers prepared for a 62 cents-per-pack federal excise tax, which took effect April 1 and included provisions for taxes on inventory held as of March 31. Lorillard reported it increased its wholesale selling prices by 71 cents per pack as of March 6 to cover the increase in the federal tax and other costs. The company also said it had increased its overall market share to 11.4 percent, up from 10.8 percent during the first quarter last year. It also increased its share of the menthol market, mostly on strength of its Newport brand, from 28.9 percent to 29.4 percent. Enditem