Lorillard’s cigarette shipments down

Lorillard’s domestic-market wholesale cigarette shipments during the three months to the end of June, at 10,262 million, were down by 1.9 percent on those of the second quarter of 2012, at 10,461 million.

Shipments of Newport were down by 1.3 percent to 8,693 million, while shipments of Kent and True, Lorillard’s other full-price brands, were down by 13.3 percent to 40 million and by 12.0 percent to 43 million, respectively.

In total, full-price brand shipments were down by 1.4 percent to 8,777 million.

Shipments of price/value brands were down by 4.8 percent to 1,484 million, with shipments of Old Gold down by 8.9 percent to 117 million and those of Maverick down by 4.4 percent to 1,367 million.

Lorillard’s shipments to Puerto Rico and U.S. possessions were increased by 11.3 percent to 186 million; so domestic and overseas shipments, taken together, were down by 1.7 percent to 10,448 million.

Lorillard’s share of the U.S. domestic market during the second quarter, at 14.9 percent, was increased by 0.6 of a percentage point from that of the second quarter of 2012. Newport’s share was up by 0.6 of a percentage point to 12.6 percent.

The menthol cigarette share of the total U.S. market increased by 0.6 of a percentage point to 31.5 percent, and Lorillard’s share of the menthol segment increased by 0.9 of a percentage point to 40.2 percent.

Newport’s share of the menthol segment rose by 0.8 of a percentage point to 37.0 percent.

Meanwhile, Lorillard’s domestic-market wholesale cigarette shipments during the six months to the end of June, at 19,306 million, were down by 2.2 percent on those of the first half of 2012, at 19,748 million.

The company’s shipments of full-price brands were down by 1.6 percent to 16,517 million, with Newport’s shipments down by 1.5 percent to 16,357 million, Kent’s shipments down by 12.9 percent to 77 million and True’s shipments down by 12.4 percent to 82 million.

Shipments of price/value brands were down by 6.0 percent to 2,789 million, with shipments of Old Gold down by 12.4 percent to 218 million and shipments of Maverick down by 5.4 percent to 2,570 million.

Lorillard’s shipments to Puerto Rico and U.S. possessions were increased by 13.4 percent to 365 million, meaning that, overall, the company’s shipments were down by 2.0 percent to 19,671 million.

Net sales for the three months ended June 30, at $1,804 million, were increased by 4.2 per cent on those of the three months ended June 30, 2012.

Reported operating income was up by 11.6 per cent to $540 million while adjusted operating income was up by 8.2 per cent to $529 million.

Reported net income was increased by 10.2 per cent to $313 million and adjusted net income was up by 7.0 per cent to $307 million.

Reported diluted earnings per share (EPS) were up by 15.3 per cent to $0.83 and adjusted diluted EPS were up by 11.0 per cent to $0.81.

Meanwhile, net sales for the six months ended June 30, at $3,381 million, were increased by 3.8 per cent on those of the six months ended June 30, 2012.

Reported operating income was increased by 25.8 per cent to $1,101 million and adjusted operating income was up by 9.0 per cent to $967 million.

Reported net income was increased by 26.2 per cent to $640 million and adjusted net income was up by 8.3 per cent to $558 million.

Reported diluted earnings per share (EPS) were up by 31.0 per cent to $1.69 and adjusted diluted EPS were up by 12.2 per cent to $1.47.

“I am pleased that, in a challenging external environment, Lorillard delivered another high quality earnings quarter marked by stable cigarette volumes, strong market share gains, tight cost control and continued success of the company’s strategic initiatives, like blu eCigs,” said Murray S. Kessler, chairman, CEO and president.

“As a result, Lorillard has grown adjusted EPS 12 per cent during the first half of the year.

“With continued industry leading fundamentals, our plans to launch Newport Non-Menthol Gold, the continued success of blu eCigs and our recently increased share repurchase authorization, we are confident in our ability to continue our strong operational and financial performance throughout 2013 and into 2014.”