Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Lorillard Q4 Profit Down, But Tops View - Update

RELATED NEWS
Trade LO now with 
2/13/2013 12:33 PM ET

US cigarette maker Lorillard Inc. (LO: Quote), Wednesday reported a slight drop in profit for the fourth quarter, as higher operating costs and weak gross margins offset an increase in sales. Sales for the quarter grew five percent largely due to higher shipments and prices. Earnings for the quarter came in ahead of analysts' estimates.

Lorillard, which sells Newport cigarettes, said cigarette sales improved 2.9 percent to $1.67 billion on higher prices and sales volume. Total wholesale volume, which includes Puerto Rico and US Possessions, increased 0.3 percent , while domestic shipments, which excludes Puerto Rico and US Possessions increased 0.4 percent from last year.

Cigarette segment's gross margin, or gross profit as percentage of sales, dropped to 37.7 percent from 39.4 percent last year. Selling, general and administrative costs increased $5 million to $113 million due mainly to higher compensation and benefit costs and higher legal costs related to the Engle Progeny litigation.

Electronic cigarette division's sales generated sales of $39 million for the quarter. Lorillard's sales for the quarter grew 5.3 percent to $1.70 billion from $1.62 billion last year.

Seven analysts polled by Thomson Reuters had a consensus revenue estimate of $1.16 billion for the quarter.

North Carolina-based Lorillard's fourth-quarter profit dropped to $309 million from $310 million. On a per share basis, earnings rose to $0.80 per share from $0.77 per share last year, due to lower number of shares outstanding.

Adjusted net income for the quarter increased to $304 million or $0.79 per share from $295 million or $0.73 per share last year. Analysts expected earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted earnings increased due to the impact of share repurchases, a lower effective tax rate, the inclusion of operating income of the electronic cigarettes segment.

Lorillard also boosted its dividend by 6.5 percent to $0.55 per share, payable on March 11 to stockholders as of March 1.

LO is currently trading at $42.21, up $2.49 or 6.27%, on the NYSE.

Register
To receive FREE breaking news email alerts for LORILLARD Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Israel on Thursday announced it has suspended the US-mediated peace talks with the Palestinians in response to a unity accord reached between the two rival Palestinian groups, the Hamas and the Fatah. The development comes just a day after the Hamas, a radical Islamist group that controls Gaza, and the Fatah faction that rules the West Bank announced a reconciliation deal. The two groups said they While U.S. President Barack Obama and his Russian counterpart Vladimir Putin have called for a diplomatic solution to the ongoing crisis in Ukraine, the two leaders both made comments Thursday with the potential to inflame rather than tamp down the situation. After initially showing a lack of direction, stocks have moved mostly higher over the course of the trading day on Thursday. The strength that has emerged on the day has largely offset the weakness that was seen in the previous session. The major averages have moved roughly sideways in recent trading, hovering in positive territory.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.