Cigarette-maker Lorillard Inc.'s first-quarter net income climbed 7 percent as it sold more Newport and Maverick cigarettes at higher prices.
Lorillard, the nation's third-biggest tobacco company, reported Tuesday that its net income was $248 million, or $1.71 per share, for the period that ended March 31. That's up from $232 million, or $1.50 per share, a year earlier.
The per-share figure was boosted in part by the company having fewer shares outstanding. Lorillard, based in Greensboro, said its revenue, excluding excise taxes, rose 14 percent to $1.06 billion.
Analysts polled by FactSet expected earnings of $1.57 per share and revenue of $955 million.
Company shares rose $4.48, or 4.5 percent, to $104.08 in morning trading Tuesday.
The company said it's off to a good start for the year but that competitive and regulatory challenges remain.
Lorillard sold 9.5 percent more cigarettes on gains of 8 percent from its flagship brand, Newport, and increases of about 23 percent for its lower-priced brands such as Maverick and Old Gold.
The company estimates that, in contrast, cigarette volume fell 3.4 percent across the industry for the quarter.
Rivals Reynolds American Inc. and Altria Group Inc. both have reported selling fewer cigarettes in the quarter.
Lorillard said its non-menthol Newport cigarettes, introduced in November, contributed significantly to its increase in volume, but it also noted that it spent more promoting the new product.
High unemployment and rising cigarette prices and taxes caused many smokers to trade down to cheaper brands during the recession. Lorillard's Maverick and Old Gold and Reynolds American's Pall Mall have been among the beneficiaries.
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