Lorillard's Shipments Down

Source from:  Tobacco Reporter 07/27/2012

Lorillard's domestic-market wholesale cigarette shipments during the three months to the end of June, at 10,461 million, were down by 1.3 per cent on those of the second quarter of 2011, 10,598 million. Shipments of Newport were down by 2.0 per cent to 8,806 million, while shipments of Kent and True, Lorillard's other full price brands, were down by 14.9 per cent to 47 million and by 13.7 per cent to 49 million respectively. In total, full price brand shipments were down by 2.1 per cent to 8,903 million. Shipments of price/value brands were increased by 3.7 per cent to 1,558 million, with shipments of Old Gold down by 8.3 per cent to 128 million but those of Maverick up by 4.9 per cent to 1,430 million. Lorillard's shipments to Puerto Rico and US Possessions were increased by 6.7 per cent to 167 million; so domestic and overseas shipments, taken together, were down by 1.2 per cent to 10,628 million Lorillard's share of the US domestic market during the second quarter, at 14.3 per cent, was increased by 0.1 of a percentage point from that of the second quarter of 2011. Newport's share was unchanged at12.0 per cent. The menthol cigarette share of the total US market increased by 0.6 of a percentage point to 30.9 per cent while Lorillard's share of the menthol segment dropped by 0.1 of a percentage point to 39.3 per cent. Newport's share of the menthol segment fell by 0.3 of a percentage point to 36.2 per cent. Meanwhile, Lorillard's domestic-market wholesale cigarette shipments during the six months to the end of June, at 19,748 million, were down by 1.9 per cent on those of the first half of 2011, 20,121 million. The company's shipments of full price brands were down by 3.1 per cent to 16,781 million, with Newport's shipments down by 2.9 per cent to 16,599 million, Kent's shipments down by 15.4 per cent to 89 million and True's shipments down by 14.5 per cent to 94 million. Shipments of price/value brands were increased by 5.6 per cent to 2,966 million, with shipments of Old Gold down by 8.6 per cent to 249 million but shipments of Maverick increased by 7.1 per cent to 2,717 million. Lorillard's shipments to Puerto Rico and US possessions were down by 5.6 per cent to 321 million, meaning that, overall, the company's shipments were down by 1.9 per cent to 20,070 million. Net sales for the three months ended June 30, at $1,731 million, were increased by 2.3 per cent on those of the three months ended June 30, 2011. Reported operating income was down by 0.6 per cent to $484 million while adjusted operating income was up by 0.4 per cent to $489 million. Reported net income was down by 2.4 per cent to $284 million and adjusted net income was down by 1.4 per cent to $287 million. Reported diluted earnings per share (EPS) were up by 5.8 per cent to $2.17 and adjusted diluted EPS were up by 6.8 per cent to $2.19. Meanwhile, net sales for the six months ended June 30, at $3,257 million, were increased by 0.9 per cent on those of the six months ended June 30, 2011. Reported operating income was down by 3.6 per cent to $875 million and adjusted operating income was down by 2.3 per cent to $887 million. Reported net income was down by 5.9 per cent to $507 million and adjusted net income was down by 4.4 per cent to $515 million. Reported diluted earnings per share (EPS) were up by 3.2 per cent to $3.87 and adjusted diluted EPS were up by 4.8 per cent to $3.93. "In a quarter that saw significant competitive activity, Lorillard grew sales and market share without sacrificing gross margin," said Murray S. Kessler, chairman, CEO and president. "With strong second half plans in place and a more favorable inventory position, the company reaffirms its 2012 goal of a double digit total shareholder return as measured by EPS growth and the dividend yield." Enditem