Lorillard Authorizes $500 Million in Share Buybacks

Source from:  Fox Business 08/22/2012

Lorillard Inc. (LO) authorized up to $500 million in share repurchases, as the tobacco company looks to boost shareholder value. The No. 3 U.S. cigarette producer by revenue dominates the market for menthol cigarettes, said the repurchase program has no set expiration date and said the program will be funded with existing cash balances. The company had $946 million in cash and cash equivalents as of June 30. Lorillard completed a $750 million share repurchase plan earlier this year, but didn't buy back shares in the second quarter. The No. 3 U.S. cigarette producer by revenue dominates the market for menthol cigarettes, which are increasingly popular among younger smokers, though overall smoking rates have declined. Lorillard is also making a push into the fast-growing electronic-cigarette market with its $135 million acquisition of Blu Ecigs in April. Last month, Lorillard reported its second-quarter earnings fell 2.4% as declining shipments slowed the company's sales growth more than expected. Shares closed at $127.88 and were unchanged after hours. The stock is up 12% since the start of the year. Enditem