Lorillard’s cigarette shipments down in 2012 but up in final quarter
Lorillard’s domestic shipment volumes during the 12 months to the end of December 2012, at 39,490,890,000, were down by 1.4 per cent on those of the previous 12 months.
Including shipments to Puerto Rico and US Possessions, shipments were down by 1.4 per cent to 40,152,192,000.
Shipments of Newport cigarettes fell by 1.8 per cent to 33,125,424,000, and shipments of premium brands taken together decreased by 2.0 per cent to 33,487,272,000, with shipments of Kent down by 13.9 per cent to 175,116,000 and shipments of True down by 13.3 per cent to 186,732,000.
Shipments of price/value brands increased by 2.2 per cent to 6,003,618,000, with shipments of Old Gold down by 10.7 per cent to 494,166,000 and shipments of Maverick up by 3.5 per cent to 5,509,452,000.
Lorillard’s market share during 2012, at 14.4 per cent was up by 0.3 of a percentage point on that of 2011, with Newport’s share up by 0.2 of a percentage point to 12.1 per cent.
Menthol cigarettes last year held a 31.1 per cent share of the US market, up by 0.6 of a percentage point from that of the previous year, and Lorillard held a 39.3 per cent share of the total US menthol segment, up by 0.2 of a percentage point. Newport’s share of the US menthol segment was 36.1 per cent, down by 0.1 of a percentage point.
Meanwhile, during the three months to the end of December, Lorillard’s domestic cigarette shipments, at 9,846,815,000, were up by 0.4 per cent on those of the three months to the end of December 2011. Including Puerto Rico and US possessions, shipments were up by 0.3 per cent to 10,012,223,000.
Newport’s shipments during the final quarter were up by 0.9 per cent to 8,263,979,000, and total full price brand shipments were up by 0.7 per cent to 8,353,055,000. Total price/value brand shipments were down by 1.4 per cent to 1,493,760,000.
Lorillard’s net sales during the 12 months to the end of December, at $6,623 million, were up by 2.4 per cent on those of the previous 12 months period.
Reported operating income was down by 0.7 per cent to $1,878 million while adjusted operating income was up by 0.9 per cent to $1,883 million.
Net income was down by 1.5 per cent to $1,099 million while adjusted net income was up by 0.2 per cent to $1,103 million.
Reported diluted earnings per share were up by 5.6 per cent to $2.81 while adjusted diluted earnings per share were up by 7.2 per cent to $2.82.
“Lorillard delivered strong financial and market share results in both the fourth quarter and full year of 2012 despite a heightened competitive environment,” said chairman, president and CEO, Murray S. Kessler, in announcing the results yesterday.
“We are very pleased to have delivered a double-digit shareholder return as measured by EPS growth and the dividend yield during 2012, and to have grown market share for the tenth consecutive year.
“We are confident in our ability to continue this strong financial performance in 2013, as reflected by our recent 3-for-1 stock split and today’s announcement of a 6.5 per cent dividend increase.”
