Lorillard 1st-quarter profit rises; Newport maker sees rising cigarette shipments

Lorillard 1Q profit rises as cigarette sales rise

GREENSBORO, N.C. — The maker of Newport, Maverick and True cigarettes saw its first-quarter profit climb 26 percent Monday as domestic product shipments and prices rose.

Lorillard Inc. also said higher federal excise taxes on smokes boosted revenue. Its stock rose 85 cents to $80.42 in premarket trading.

The nation’s third-biggest cigarette maker’s earnings rose to $232 million, or $1.50 per share, in the three months ended March 31. That’s up from $184 million, or $1.09 a share, a year ago.

The earnings beat the $1.22 per-share profit estimate of analysts surveyed by Thomson Reuters. Those estimates generally exclude one-time items.

Revenue improved to $1.36 billion from $917 million as domestic wholesale shipments of discount brand Maverick grew 48.7 percent.

Excluding $287 million related to the April 1, 2009, federal cigarette tax increase, revenue was $923 million on higher average prices, reduced promotions and increased net unit sales volume. Wall Street predicted $802.7 million.

Domestic wholesale shipments increased 12.7 percent during the quarter, with Newport domestic wholesale shipments up 9.8 percent.

Lorillard, based in Greensboro, N.C., said its total shipments grew 12.1 percent.

“We have achieved these results despite challenging market conditions,” Chairman, President and CEO Martin Orlowsky said in a statement.

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