Price Increases Raise Lorillard Earnings

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Price Increases Raise Lorillard Earnings

10/28/2008
GREENSBORO, N.C. -- Newport and Kent brand cigarette manufacturer Lorillard earned $237 million in the three months ended Sept. 30, which beat analysts’ estimates, but was down from $244 million generated the prior year, Forbes reported.

The company’s sales rose 7.8 percent to $1.1 billion, also beating analysts’ estimates of $1 billion, the report stated.

The company beat estimates in the third quarter by raising prices, but higher promotional and manufacturing costs, as well as lawsuits, limited the benefits, Forbes reported.

Lorillard, which separated from its parent Loews in June, saw third-quarter profit fall 2.9 percent from the prior year. Total wholesale shipment volumes in the quarter rose 4.5 percent to 10.09 billion units, the report stated, citing the company.

Lorillard’s Newport brand continued to increase market share during the third quarter, according to the report.