Lorillard’s volumes beating the market
Lorillard’s domestic shipment volumes during the 12 months to the end of December, at 39,325,216,000, were down by 0.4 percent on those of 2012.
Including shipments to Puerto Rico and U.S. possessions, shipments were down by 0.5 percent to 39,947,512,000.
Shipments of Newport cigarettes increased by 0.7 percent to 33,352,162,000, and shipments of full-price brands taken together increased by 0.5 percent to 33,668,164,000; with shipments of Kent down by 13.5 percent to 151,524,000 and shipments of True down by 11.9 percent to 164,478,000.
Shipments of price/value brands decreased by 5.8 percent to 5,657,052,000, with shipments of Old Gold down by 11.6 percent to 436,992,000 and shipments of Maverick down by 5.3 percent to 5,220,060,000.
Lorillard’s market share during 2013, at 14.9 percent 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 percent.
Menthol cigarettes last year held a 31.4 percent share of the U.S. market, up by 0.3 of a percentage point from that of the previous year, and Lorillard held a 40.3 percent share of the total U.S. menthol segment, up by 1 percentage point. Newport’s share of the U.S. menthol segment was 37.1 percent, up by 1 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 percent on those of the three months to the end of December 2012, 9,846,815,000. Including Puerto Rico and U.S. possessions, shipments were down by 1.6 percent to 9,850,979,000.
Newport’s shipments during the final quarter were up by 0.4 percent to 8,298,209,000, and total full-price brand shipments were up by 0.2 percent to 8,372,585,000. Total price/value brand shipments were down by 7.9 percent 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 percent on those of the previous 12 months period.
Reported operating income was up by 10.4 percent to $2,074 million, while adjusted operating income was up by 7.8 percent to $2.030 million.
Net income was up by 8.5 percent to $1,192 million, while adjusted net income was up by 5.9 percent to $1,168 million.
Reported diluted earnings per share were up by 13.2 percent to $3.18, while adjusted diluted earnings per share were up by 10.6 percent 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 e-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.
