Lorillard Ups Volumes And Takes Record Market Share

Source from:  Tobacco Reporter 02/09/2011

Lorillard's domestic market wholesale cigarette shipments during the 12 months to the end of December, at 37,433 million, were up by 5.3 per cent on those of the 12 months to the end of December 2009, 35,560 million. This was at a time, the company has reported, when the industry's shipments fell by 3.8 per cent overall. Lorillard's shipments of full-price brands were increased by 2.2 per cent from 31,628 million to 32,318 million, with Newport shipments up by 2.5 per cent to 31,804 million, Kent shipments down by 15.2 per cent to 250 million, True shipments down by 13.4 per cent to 253 million and Max shipments down by 40.3 per cent to 11 million. Shipments of price/value brands were increased by 30.1 per cent from 3,932 million to 5,114 million, with shipments of Old Gold up by 18.8 per cent to 529 million and shipments of Maverick up by 31.5 per cent to 4,585 million. During the 12 months to the end of December, Lorillard's share of the domestic market, at 12.9 per cent, was up by 1.1 percentage points, with Newport's share up 0.7 of a percentage point to 11.0 per cent. At the same time the share of the total market accounted for by menthol products increased by 0.7 of a percentage point to 30.0 per cent, while Newport's share of the total menthol segment increased by 1.0 percentage point to 36.1 per cent. Meanwhile, Lorillard's non-domestic shipments (to Puerto Rico and US possessions) during the 12 months to the end of December, at 674 million, were down by 7.0 per cent from those of the 12 months to the end of December 2009. Lorillard yesterday announced its full-year and fourth quarter results. "Lorillard continued to fire on all cylinders during the fourth quarter leading to record annual results in net sales, net earnings, earnings per share and retail market share," said Murray S. Kessler, chairman, president and CEO. "Based on our current strategic review process, which is well under way, I remain confident in the company's future and its ability to deliver a double digit shareholder return over the long-term." The company's domestic shipments during the three months to the end of December, at 9,298 million, were 4.6 per cent up on those of the three months to the end of December 2009, 8,886 million. Shipments of full-price brands were increased by 1.8 per cent to 7,966 million, with Newport shipments up by 2.2 per cent to 7,851 million, Kent shipments down by 17.6 per cent to 57 million and True shipments down by 17.2 per cent to 58 million. Shipments of price/value brands were increased by 25.4 per cent to 1,332 million, with Old Gold shipments up by 27.1 per cent to 135 million and shipments of Maverick up by 25.2 per cent to 1,197 million. Non domestic shipments were down by 1.3 per cent from 160 million to 158 million. During the 12 months to the end of December, Lorillard's net sales increased by 13.4 per cent, or $699 million, to a record $5.932 billion, though $287 million of that increase was the result of the April 2009 increase in federal excise taxes on cigarettes. Net sales excluding excise taxes increased by 10.0 per cent or $367 million to $4,053 million. Gross profit, at $2.123 billion, or 52.4 per cent of net sales excluding excise taxes, was up from $1.906 billion or 51.7 per cent of net sales excluding excise taxes. Net income, at $1.029 billion, or $6.78 per share (basic and diluted), was up from $948 million, or $5.76 per share (basic and diluted). During the fourth quarter, net sales, at $1.486 billion, were increased by 7.8 per cent or $108 million on those of the fourth quarter of 2009. Gross profit during the fourth quarter, at $538 million, or 36.2 per cent of net sales, was up from $481 million, or 34.9 per cent of net sales, during the fourth quarter of 2009. Net income, at $259 million, or $1.74 per share (basic and diluted), was up from $242 million, or $1.52 per share (basic and diluted). Enditem