Strong Performances From Lorillard

Source from:  Tobacco Reporter 07/28/2010

Lorillard's wholesale domestic shipments of cigarettes during the three months to the end of June, at 9,602 million, were down by 0.6 per cent on those of the three months to the end of June last year. Shipments of full price brands were down by 3.7 per cent to 8,334 million while shipments of price/value brands were up by 25.6 per cent to 1,268 million. In the full price segment, shipments of Newport were down by 3.4 per cent to 8,195 million, shipments of Kent were down by 20.0 per cent to about 67 million, shipments of True were down by 18.0 per cent to about 68 million, and shipments of Max were down by 13.4 per cent to about five million. In the price/value sector, shipments of Maverick increased by 26.5 per cent to 1,125 million and those of Old Gold increased by 18.6 per cent to 143 million. Lorillard's shipments to Puerto Rico and US possessions fell by 13.2 per cent to about 183 million. On the domestic market, Lorillard's market share during the three months to the end of June, at 12.8 per cent, was one percentage point up on that of the three months to the end of June 2009. Newport's market share increased by 0.5 of a percentage point to 10.9 per cent. Lorillard's share of the menthol cigarette market increased by 0.9 of a percentage point to 30.0 per cent, and Newport's share of the menthol segment increased by 1.2 percentage points to 36.5 per cent. Meanwhile, Lorillard's domestic shipments during the six months to the end of June, at 18,305 million, were up by 5.3 per cent on those of the six months to the end of June last year. Shipments of full price brands were up by 2.2 per cent to 15,974 million while shipments of price/value brands were up by 32.7 per cent to 2,330 million. In the full price segment, shipments of Newport were up by 2.5 per cent to 15,705 million, shipments of Kent were down by 14.1 per cent to about 130 million, shipments of True were down by 11.8 per cent to about 131 million, and shipments of Max were down by 9.9 per cent to about nine million. In the price/value sector, shipments of Maverick increased by 35.8 per cent to 2,081 million and those of Old Gold increased by 11.4 per cent to about 249 million. Lorillard's shipments to Puerto Rico and US possessions fell by 13.0 per cent to about 343 million. On the domestic market, Lorillard's market share during the six months to the end of June was up by 1.1 percentage points while Newport's share increased by 0.6 of a percentage point. Lorillard's share of the menthol cigarette market increased by 0.9 of a percentage point while Newport's share of the menthol segment increased by 1.2 percentage points. Net sales during the second quarter of 2010, at $1.520 billion, were up from $1.519 billion during the second quarter of 2009, while net sales excluding excise taxes were up from $1.033 billion to $1.038 billion. Net sales excluding excise taxes for the first six months of 2010, at $1.960 billion, were up by $159 million on those of the first six months of last year. Operating income during the second quarter decreased by 2.4 per cent to $445 million, but, during the first six months, increased by 10.1 per cent to $827 million. "We are extremely pleased with our performance for the second quarter of this year when considering the unique circumstances that affected the industry during the second quarter of last year," said Martin Orlowsky, chairman, president and CEO. "On a relative basis, Lorillard outperformed the industry in each of the first two quarters of this year and achieved record retail market shares for the total brand portfolio and specifically, Newport. Newport increased its penetration of the total domestic market as well as the menthol category. "While there continue to be pressures exerted on the industry as a consequence of state excise tax increases, continued smoking restrictions, and the nature of the economy, we will continue to apply the same disciplined strategies to operating and improving our business as we have in the past, and remain focused on our long term strategic objectives." Enditem