RICHMOND, Va. — Tobacco maker Lorillard Inc. reports its third-quarter results on Monday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: The oldest continuously operating U.S. tobacco company and maker of Newport menthol cigarettes, based in Greensboro, N.C., said in July that it was selling more cigarettes even after it raised prices and a federal tax increase went into effect April 1.
Cigarette volumes at Lorillard, whose brands also include Kent, True, Maverick, Old Gold and Max, increased 2.1 percent for the second quarter, when the company estimated volumes fell 4.1 percent across the industry.
It is the fourth major tobacco company to report on its earnings this month. Altria Group Inc. — owner of the nation's biggest cigarette maker, Philip Morris USA, which makes Marlboros — said cost-cutting and higher cigar sales helped its third-quarter profit rise 1.7 percent, even though it sold fewer cigarettes. Altria said its overall cigarette volume fell 12 percent for the quarter, and it estimated a 10 percent drop industrywide.
Reynolds American Inc. — the second-biggest cigarette seller in the U.S. and maker of Camel and Pall Mall — recorded 72 percent higher profit than in last year's third quarter, when restructuring costs and the falling value of its trademarks dampened its earnings. It said its estimated 11 percent drop in volume was better than the industry's decline, which it pegged at 12.6 percent.
Lorillard joined Reynolds and several smaller tobacco companies in suing the U. S. Food and Drug Administration over statements it has made under the new authority it won in June to regulate the tobacco industry. A federal judge in Kentucky is considering the case.
BY THE NUMBERS: Analysts surveyed by Thomson Financial on average expect Lorillard to post a profit of $1.52 per share on revenue of $1.32 billion. In the third quarter a year earlier, the company earned $1.38 per share on revenue of $1.12 billion.
ANALYST TAKE: Analysts hope the third quarter sheds light on cigarette volumes for the year as the industry recovers from turbulence surrounding the federal tax increase.
Credit Suisse analyst Thilo Wrede told investors Oct. 13 that despite volume declines he expects Newport to keep gaining market share and he said Lorillard's Maverick brand would post double-digit volume gains.
In a separate note Sept. 21, Wrede said Lorillard is the best U.S. tobacco company.
"Lorillard continues to have the best margins, volume growth outlook and brand equity," Wrede wrote, adding that Maverick is drawing budget-conscious smokers.
WHAT'S AHEAD: The tobacco industry is anticipating more fallout from the FDA's new regulatory authority. Although a ban on flavored cigarettes went into effect last month, the FDA has not clarified how it will treat menthol cigarettes like Lorillard's popular Newport brand. And both Altria and Reynolds American hope to take some of Lorillard's share of the menthol market.
Wall Street will be looking at how further smoking bans, tax increases and regulation could affect cigarette volumes and profitability.
STOCK PERFORMANCE: During the quarter that ended Sept. 30, shares of Lorillard rose about 7.2 percent to $74.30. Over the previous 52 weeks, the stock traded between $52.50 and $79.02.
четверг, 29 октября 2009 г.
Earnings Preview: Lorillard Inc.
RICHMOND, Va. — Tobacco maker Lorillard Inc. reports its third-quarter results on Monday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: The oldest continuously operating U.S. tobacco company and maker of Newport menthol cigarettes, based in Greensboro, N.C., said in July that it was selling more cigarettes even after it raised prices and a federal tax increase went into effect April 1.
Cigarette volumes at Lorillard, whose brands also include Kent, True, Maverick, Old Gold and Max, increased 2.1 percent for the second quarter, when the company estimated volumes fell 4.1 percent across the industry.
It is the fourth major tobacco company to report on its earnings this month. Altria Group Inc. — owner of the nation's biggest cigarette maker, Philip Morris USA, which makes Marlboros — said cost-cutting and higher cigar sales helped its third-quarter profit rise 1.7 percent, even though it sold fewer cigarettes. Altria said its overall cigarette volume fell 12 percent for the quarter, and it estimated a 10 percent drop industrywide.
Reynolds American Inc. — the second-biggest cigarette seller in the U.S. and maker of Camel and Pall Mall — recorded 72 percent higher profit than in last year's third quarter, when restructuring costs and the falling value of its trademarks dampened its earnings. It said its estimated 11 percent drop in volume was better than the industry's decline, which it pegged at 12.6 percent.
Lorillard joined Reynolds and several smaller tobacco companies in suing the U. S. Food and Drug Administration over statements it has made under the new authority it won in June to regulate the tobacco industry. A federal judge in Kentucky is considering the case.
BY THE NUMBERS: Analysts surveyed by Thomson Financial on average expect Lorillard to post a profit of $1.52 per share on revenue of $1.32 billion. In the third quarter a year earlier, the company earned $1.38 per share on revenue of $1.12 billion.
ANALYST TAKE: Analysts hope the third quarter sheds light on cigarette volumes for the year as the industry recovers from turbulence surrounding the federal tax increase.
Credit Suisse analyst Thilo Wrede told investors Oct. 13 that despite volume declines he expects Newport to keep gaining market share and he said Lorillard's Maverick brand would post double-digit volume gains.
In a separate note Sept. 21, Wrede said Lorillard is the best U.S. tobacco company.
"Lorillard continues to have the best margins, volume growth outlook and brand equity," Wrede wrote, adding that Maverick is drawing budget-conscious smokers.
WHAT'S AHEAD: The tobacco industry is anticipating more fallout from the FDA's new regulatory authority. Although a ban on flavored cigarettes went into effect last month, the FDA has not clarified how it will treat menthol cigarettes like Lorillard's popular Newport brand. And both Altria and Reynolds American hope to take some of Lorillard's share of the menthol market.
Wall Street will be looking at how further smoking bans, tax increases and regulation could affect cigarette volumes and profitability.
STOCK PERFORMANCE: During the quarter that ended Sept. 30, shares of Lorillard rose about 7.2 percent to $74.30. Over the previous 52 weeks, the stock traded between $52.50 and $79.02.
OVERVIEW: The oldest continuously operating U.S. tobacco company and maker of Newport menthol cigarettes, based in Greensboro, N.C., said in July that it was selling more cigarettes even after it raised prices and a federal tax increase went into effect April 1.
Cigarette volumes at Lorillard, whose brands also include Kent, True, Maverick, Old Gold and Max, increased 2.1 percent for the second quarter, when the company estimated volumes fell 4.1 percent across the industry.
It is the fourth major tobacco company to report on its earnings this month. Altria Group Inc. — owner of the nation's biggest cigarette maker, Philip Morris USA, which makes Marlboros — said cost-cutting and higher cigar sales helped its third-quarter profit rise 1.7 percent, even though it sold fewer cigarettes. Altria said its overall cigarette volume fell 12 percent for the quarter, and it estimated a 10 percent drop industrywide.
Reynolds American Inc. — the second-biggest cigarette seller in the U.S. and maker of Camel and Pall Mall — recorded 72 percent higher profit than in last year's third quarter, when restructuring costs and the falling value of its trademarks dampened its earnings. It said its estimated 11 percent drop in volume was better than the industry's decline, which it pegged at 12.6 percent.
Lorillard joined Reynolds and several smaller tobacco companies in suing the U. S. Food and Drug Administration over statements it has made under the new authority it won in June to regulate the tobacco industry. A federal judge in Kentucky is considering the case.
BY THE NUMBERS: Analysts surveyed by Thomson Financial on average expect Lorillard to post a profit of $1.52 per share on revenue of $1.32 billion. In the third quarter a year earlier, the company earned $1.38 per share on revenue of $1.12 billion.
ANALYST TAKE: Analysts hope the third quarter sheds light on cigarette volumes for the year as the industry recovers from turbulence surrounding the federal tax increase.
Credit Suisse analyst Thilo Wrede told investors Oct. 13 that despite volume declines he expects Newport to keep gaining market share and he said Lorillard's Maverick brand would post double-digit volume gains.
In a separate note Sept. 21, Wrede said Lorillard is the best U.S. tobacco company.
"Lorillard continues to have the best margins, volume growth outlook and brand equity," Wrede wrote, adding that Maverick is drawing budget-conscious smokers.
WHAT'S AHEAD: The tobacco industry is anticipating more fallout from the FDA's new regulatory authority. Although a ban on flavored cigarettes went into effect last month, the FDA has not clarified how it will treat menthol cigarettes like Lorillard's popular Newport brand. And both Altria and Reynolds American hope to take some of Lorillard's share of the menthol market.
Wall Street will be looking at how further smoking bans, tax increases and regulation could affect cigarette volumes and profitability.
STOCK PERFORMANCE: During the quarter that ended Sept. 30, shares of Lorillard rose about 7.2 percent to $74.30. Over the previous 52 weeks, the stock traded between $52.50 and $79.02.
среда, 28 октября 2009 г.
Children hooked on illegal tobacco
Children are getting hooked on smoking through the sale of illegal cigarettes in "tab houses".
Trading Standards officials said 30% of young people admitted buying cheap and illicit tobacco - much of which has been smuggled into the country.
The cigarettes are sold from private homes in deprived areas with no age checks, creating a new generation of smokers struggling in the economic climate, it is claimed.
Richard Ferry, from Trading Standards North East, told the BBC: "About 30% of under 18s admit to buying cheap and illicit tobacco.
"It means they start smoking earlier and they can smoke more. The people who sell from tab houses don't care who they sell to."
The sorts of cigarettes being sold include duty-free cigarettes, which should be for personal use only, fake versions of well-known brands and "cheap whites" - cigarettes aimed specifically at the black market.
Tobacco smuggling is thought to cost the UK economy about £3 billion a year in lost tax revenue.
Meanwhile, customs officers have seized n estimated 120 million cigarettes smuggled into the Irish Republic.
It is understood the majority of the Palace and Chelsea brands were destined for the UK market.
Trading Standards officials said 30% of young people admitted buying cheap and illicit tobacco - much of which has been smuggled into the country.
The cigarettes are sold from private homes in deprived areas with no age checks, creating a new generation of smokers struggling in the economic climate, it is claimed.
Richard Ferry, from Trading Standards North East, told the BBC: "About 30% of under 18s admit to buying cheap and illicit tobacco.
"It means they start smoking earlier and they can smoke more. The people who sell from tab houses don't care who they sell to."
The sorts of cigarettes being sold include duty-free cigarettes, which should be for personal use only, fake versions of well-known brands and "cheap whites" - cigarettes aimed specifically at the black market.
Tobacco smuggling is thought to cost the UK economy about £3 billion a year in lost tax revenue.
Meanwhile, customs officers have seized n estimated 120 million cigarettes smuggled into the Irish Republic.
It is understood the majority of the Palace and Chelsea brands were destined for the UK market.
Crushing virtual ciggies can reduce tobacco addiction
Washington, Oct 28 (ANI): A new study has shown that crushing cigarettes in a virtual reality environment reduces tobacco addiction.
In the study, researchers found that smokers who crushed computer-simulated cigarettes as part of a psychosocial treatment program in a virtual reality environment had significantly reduced nicotine dependence and higher rates of tobacco abstinence than smokers participating in the same program who grasped a computer-simulated ball.
Benoit Girard, MD, Vincent Turcotte, and Bruno Girard, MBA, from the GRAP Occupational Psychology Clinic (Quebec, Canada), and Stéphane Bouchard, PhD, from the University of Quebec in Gatineau, randomly assigned 91 smokers enrolled in a 12-week anti-smoking support program to one of two treatment groups.
In a computer-generated virtual reality environment, one group simulated crushing virtual cigarettes, while the other group grasped virtual balls during 4 weekly sessions.
The findings demonstrate a statistically significant reduction in nicotine addiction among the smokers in the cigarette-crushing group versus those in the ball-grasping group.
Also, at week 12 of the program, the smoking abstinence rate was significantly higher for the cigarette-crushing group (15 percent) compared to the ball-grasping group (2 percent).
Other notable findings include the following: smokers who crushed virtual cigarettes tended to stay in the treatment program longer than the ball-grasping group. At the 6-month follow-up, 39 percent of the cigarette crushers reported not smoking during the previous week, compared to 20 percent of the ball graspers.
The study has been described in the current issue of CyberPsychology and Behaviour, a peer-reviewed journal published by Mary Ann Liebert, Inc. (ANI)
In the study, researchers found that smokers who crushed computer-simulated cigarettes as part of a psychosocial treatment program in a virtual reality environment had significantly reduced nicotine dependence and higher rates of tobacco abstinence than smokers participating in the same program who grasped a computer-simulated ball.
Benoit Girard, MD, Vincent Turcotte, and Bruno Girard, MBA, from the GRAP Occupational Psychology Clinic (Quebec, Canada), and Stéphane Bouchard, PhD, from the University of Quebec in Gatineau, randomly assigned 91 smokers enrolled in a 12-week anti-smoking support program to one of two treatment groups.
In a computer-generated virtual reality environment, one group simulated crushing virtual cigarettes, while the other group grasped virtual balls during 4 weekly sessions.
The findings demonstrate a statistically significant reduction in nicotine addiction among the smokers in the cigarette-crushing group versus those in the ball-grasping group.
Also, at week 12 of the program, the smoking abstinence rate was significantly higher for the cigarette-crushing group (15 percent) compared to the ball-grasping group (2 percent).
Other notable findings include the following: smokers who crushed virtual cigarettes tended to stay in the treatment program longer than the ball-grasping group. At the 6-month follow-up, 39 percent of the cigarette crushers reported not smoking during the previous week, compared to 20 percent of the ball graspers.
The study has been described in the current issue of CyberPsychology and Behaviour, a peer-reviewed journal published by Mary Ann Liebert, Inc. (ANI)
пятница, 23 октября 2009 г.
Tobacco Law delayed again
Caymanian smokers can rest easy. The anti tobacco law is going to miss yet another deadline.
Required regulations will not be ready to meet the 30 October deadline to fully implement the Tobacco Law, making it the second delay since the law was passed one year ago.
Government missed a deadline of 31 May, which was set by the previous government, to coincide with World No Tobacco Day.
Just 11 days prior to the 31 May deadline a new Government was voted in and Mark Scotland took the helm as Health Minister.
Despite the fact that there was a 60day consultation period, a Chamber of Commerce luncheon and other forums seeking input on the Tobacco Law, Mr. Scotland said the regulations just aren’t ready.
“I have seen the draft of the regulations and it is all marked up with corrections or revisions,” said Mr. Scotland. “So it is a small delay, probably the end of November or December.”
Director of the Cancer Society Christine Sanders said another delay in implementing the Tobacco law is not good for Cayman.
“The delay means that more people will be put at risk for developing cancer as a result of second hand smoke exposure,” said Ms Sanders.
The only part of the Tobacco law that has been implemented is a ban on selling tobacco to minors, which came into effect on 1 May, coinciding with the start of Child Month in the Cayman Islands.
Even without legislation in place, many restaurants and bars have implemented non–smoking policies indoors with some establishments going completely smoke–free.
“That is the trend,” said Ms Sanders.
Once the regulations are in effect, the law will ban smoking in bars, restaurants and places of collective use.
But smoking outdoors will still be permitted at least 10 feet away from the entrance to buildings.
Cigar bars are exempted but they will be required to install smoke extractors or ventilators within 12 months of the regulations being implemented.
The delay in introducing the Tobacco Law comes when countries around the world and throughout the Caribbean have introduced smoking bans.
Bermuda began enforcing a smoking ban in October 2006. Puerto Rico went further in March 2007 extending the ban on smoking in confined places including private cars with children younger than 13 inside. The British Virgin Islands followed suit in mid–2007 with a ban on smoking in all confined places.
Cuba has banned smoking in most work places, cigarette machines have been removed and it has been illegal to sell tobacco products close to schools since February 2005.
Required regulations will not be ready to meet the 30 October deadline to fully implement the Tobacco Law, making it the second delay since the law was passed one year ago.
Government missed a deadline of 31 May, which was set by the previous government, to coincide with World No Tobacco Day.
Just 11 days prior to the 31 May deadline a new Government was voted in and Mark Scotland took the helm as Health Minister.
Despite the fact that there was a 60day consultation period, a Chamber of Commerce luncheon and other forums seeking input on the Tobacco Law, Mr. Scotland said the regulations just aren’t ready.
“I have seen the draft of the regulations and it is all marked up with corrections or revisions,” said Mr. Scotland. “So it is a small delay, probably the end of November or December.”
Director of the Cancer Society Christine Sanders said another delay in implementing the Tobacco law is not good for Cayman.
“The delay means that more people will be put at risk for developing cancer as a result of second hand smoke exposure,” said Ms Sanders.
The only part of the Tobacco law that has been implemented is a ban on selling tobacco to minors, which came into effect on 1 May, coinciding with the start of Child Month in the Cayman Islands.
Even without legislation in place, many restaurants and bars have implemented non–smoking policies indoors with some establishments going completely smoke–free.
“That is the trend,” said Ms Sanders.
Once the regulations are in effect, the law will ban smoking in bars, restaurants and places of collective use.
But smoking outdoors will still be permitted at least 10 feet away from the entrance to buildings.
Cigar bars are exempted but they will be required to install smoke extractors or ventilators within 12 months of the regulations being implemented.
The delay in introducing the Tobacco Law comes when countries around the world and throughout the Caribbean have introduced smoking bans.
Bermuda began enforcing a smoking ban in October 2006. Puerto Rico went further in March 2007 extending the ban on smoking in confined places including private cars with children younger than 13 inside. The British Virgin Islands followed suit in mid–2007 with a ban on smoking in all confined places.
Cuba has banned smoking in most work places, cigarette machines have been removed and it has been illegal to sell tobacco products close to schools since February 2005.
четверг, 22 октября 2009 г.
Parolee charged in South Loop attack over cigarettes, again
A recent prison parolee -- convicted last year of beating up a couple who refused to give him a cigarette -- was charged again Wednesday after allegedly threatening a woman in the South Loop who refused to give him a smoke.
Derrick King, 47, is charged with a misdemeanor count of assault and was being held on a warrant for violation of probation, according to police News Affairs.King approached a 49-year-old woman about 3:20 a.m. near a store in the 500 block of West Roosevelt Road and asked her for a cigarette, police said. When she declined, King said, “Remember the couple who got beat up real bad for not giving a cigarette, that was me!” He then allegedly charged towards the woman, police said.
The woman was able to flag down Central District police officers who were patrolling the area and King was taken into custody, police said.
King was convicted last year of strong-armed robbery for an Aug. 25, 2008, attack of a couple in their 30s near a South Loop store. He and a woman, Joyce Burgess, confronted the pair and Burgess asked for a cigarette. The female victim, Jen Hall, said "go get a job," a police source said.
A fight ensued and King grabbed Hall, throwing her to the ground, beating her in the head and knocking out most of her upper teeth, according to police.
King, 47, formerly of the Pacific Garden Mission at 1458 S. Canal, and Burgess, 38, were charged with strong-armed robbery in the Aug. 25, 2008, attack, according to police, who said they stole a Blackberry. King was also charged with aggravated battery.
King, who was sentenced to three years in prison, was paroled on Tuesday, according to an Illinois Dept. of Corrections database.
Derrick King, 47, is charged with a misdemeanor count of assault and was being held on a warrant for violation of probation, according to police News Affairs.King approached a 49-year-old woman about 3:20 a.m. near a store in the 500 block of West Roosevelt Road and asked her for a cigarette, police said. When she declined, King said, “Remember the couple who got beat up real bad for not giving a cigarette, that was me!” He then allegedly charged towards the woman, police said.
The woman was able to flag down Central District police officers who were patrolling the area and King was taken into custody, police said.
King was convicted last year of strong-armed robbery for an Aug. 25, 2008, attack of a couple in their 30s near a South Loop store. He and a woman, Joyce Burgess, confronted the pair and Burgess asked for a cigarette. The female victim, Jen Hall, said "go get a job," a police source said.
A fight ensued and King grabbed Hall, throwing her to the ground, beating her in the head and knocking out most of her upper teeth, according to police.
King, 47, formerly of the Pacific Garden Mission at 1458 S. Canal, and Burgess, 38, were charged with strong-armed robbery in the Aug. 25, 2008, attack, according to police, who said they stole a Blackberry. King was also charged with aggravated battery.
King, who was sentenced to three years in prison, was paroled on Tuesday, according to an Illinois Dept. of Corrections database.
пятница, 16 октября 2009 г.
Authorities release image of suspect in Cambridge City robbery
The Wayne County Sheriff’s Department released a photo this morning of a man wearing a blue surgical mask who robbed a gas station at gunpoint Sunday morning near Cambridge City.
“The suspect approached the counter and acted like he was going to buy a Mountain Dew and two packs of Marlboro cigarettes,” Chief Deputy Jeff Cappa said in a release issued this morning.
After the clerk scanned the items into the register, the suspect pulled a small handgun and demanded money from the register. The clerk complied with the demands, and the suspect fled the store with an undisclosed amount of money, Cappa said.
The robbery took place at 2:20 a.m. Sunday at Gas America, 1589 Indiana 1 N.
The suspect is described as about 5 feet, 9 inches tall with a medium build. He wore a gray hooded jacket, black gloves, blue jeans and white shoes.
The sheriff’s department immediately secured the scene and processed evidence, including video surveillance.
“The suspect approached the counter and acted like he was going to buy a Mountain Dew and two packs of Marlboro cigarettes,” Chief Deputy Jeff Cappa said in a release issued this morning.
After the clerk scanned the items into the register, the suspect pulled a small handgun and demanded money from the register. The clerk complied with the demands, and the suspect fled the store with an undisclosed amount of money, Cappa said.
The robbery took place at 2:20 a.m. Sunday at Gas America, 1589 Indiana 1 N.
The suspect is described as about 5 feet, 9 inches tall with a medium build. He wore a gray hooded jacket, black gloves, blue jeans and white shoes.
The sheriff’s department immediately secured the scene and processed evidence, including video surveillance.
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