US: Lorillard''s Volumes Beating the Market

Source from:  Tobacco Reporter  02/14/2014

Lorillard's domestic shipment volumes during the 12 months to the end of December, at 39,325,216,000, were down by 0.4 per cent on those of 2012.

Including shipments to Puerto Rico and US Possessions, shipments were down by 0.5 per cent to 39,947,512,000.

Shipments of Newport cigarettes increased by 0.7 per cent to 33,352,162,000, and shipments of full price brands taken together increased by 0.5 per cent to 33,668,164,000; with shipments of Kent down by 13.5 per cent to 151,524,000 and shipments of True down by 11.9 per cent to 164,478,000.

Shipments of price/value brands decreased by 5.8 per cent to 5,657,052,000, with shipments of Old Gold down by 11.6 per cent to 436, 992,000 and shipments of Maverick down by 5.3 per cent to 5,220,060,000.

Lorillard's market share during 2013, at 14.9 per cent was up by 0.5 of a percentage point on that of 2012, with Newport's share up by 0.6 of a percentage point to 12.6 per cent.

Menthol cigarettes last year held a 31.4 per cent share of the US market, up by 0.3 of a percentage point from that of the previous year, and Lorillard held a 40.3 per cent share of the total US menthol segment, up by 1.0 percentage point. Newport's share of the US menthol segment was 37.1 per cent, up by 1.0 percentage point.

Meanwhile, during the three months to the end of December, Lorillard's domestic cigarette shipments, at 9,748,031,000, were down by 1.0 per cent on those of the three months to the end of December 2012, 9,846,815,000. Including Puerto Rico and US possessions, shipments were down by 1.6 per cent to 9,850,979,000.

Newport's shipments during the final quarter were up by 0.4 per cent to 8,298,209,000, and total full price brand shipments were up by 0.2 per cent to 8,372,585,000. Total price/value brand shipments were down by 7.9 per cent to 1,375,446,000.

Lorillard's net sales during the 12 months to the end of December, at $6,950 million, were up by 4.9 per cent on those of the previous 12 months period.

Reported operating income was up by 10.4 per cent to $2,074 million while adjusted operating income was up by 7.8 per cent to $2.030 million.

Net income was up by 8.5 per cent to $1,192 million while adjusted net income was up by 5.9 per cent to $1,168 million.

Reported diluted earnings per share were up by 13.2 per cent to $3.18 while adjusted diluted earnings per share were up by 10.6 per cent to $3.12.

Lorillard had delivered industry-leading, double-digit, earnings-per-share growth and its 11th consecutive year of market share growth in 2013, while making investments in electronic cigarettes and new cigarette products, and making process changes to smooth wholesale inventory fluctuations in the fourth quarter, said Murray S. Kessler, chairman, president and CEO.

"These investments, combined with the remarkable strength and loyalty of the core Newport brand, give us confidence in our ability to deliver on our stated goal of a double digit total shareholder return as measured by EPS growth and the dividend yield once again in 2014 and for many years to come," he said. Enditem