Lorillard 1st-quarter profit rises as federal excise tax gives lift to revenue

Lorillard 1Q profit up, excise tax helps revenue

GREENSBORO, N.C. — Lorillard, the maker of Newport, Maverick and True cigarettes, says its first-quarter profit climbed 26 percent as domestic wholesale shipments and average prices grew.

The nation’s third-biggest cigarette maker said higher federal excise taxes on smokes helped boost its revenue.

Lorillard said Monday its earnings rose to $232 million, or $1.50 per share, in the three months ended March 31. That’s up from earnings of $184 million, or $1.09 a share, a year ago.

It says revenue climbed to $1.36 billion from $917 million as domestic wholesale shipments of discount brand Maverick grew 48.7 percent. Excluding federal excise taxes, revenue was $923 million partly on higher average prices. Wall Street predicted revenue of $802.7 million.

Last week rivals Reynolds American Inc. and Altria Group Inc. reported declines in cigarette sales.

Lorillard Inc. is based in Greensboro, N.C.