Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Lorillard Q4 Profit Down, But Tops View - Update

RELATED NEWS
Trade LO now with 

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
Swiss drug maker Roche Holding said a late-stage trial of its breast cancer drug Kadcyla did not provide superior results compared with an existing therapy. FCA US, until recently known as Chrysler, said Friday it is recalling 257,000 Dodge Ram pickups. The auto maker says the rear axle pinion nut on certain model year 2005 Dodge Ram 1500 trucks may loosen due to an undersized spline on the pinion gear. If the pinion nut loosens, the rear axle may... This medical device company has a very impressive track record of growing business over the past decade. increasing sales from $490.2 million in 2004 to $1.72 billion this year. The Silicone Hydrogel daily disposable lens portfolio constitutes a major avenue for growth.
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.