WASHINGTON (dpa-AFX) - Lorillard, Inc. (LO) said its first-quarter profit was $223 million or $1.70 per share versus $248 million or $1.71 per share a year ago.
Adjusted earnings per share rose to $1.74 from a year ago. The 1.8% increase in adjusted earnings per share for the quarter includes the benefit of the company's share repurchase program which resulted in lower outstanding shares, and contributed $0.16 to the increase in earnings per share.
On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $2.00 per share. Analysts' estimates typically exclude special items.
Net sales reached $1.53 billion, down from $1.54 billion last year. Analysts estimated revenues of $1.20 billion.
The decrease resulted primarily from lower unit sales volume which was negatively impacted by trade inventory pattern fluctuations, partially offset by higher average prices.
Further, Lorillard announced that it has acquired all of the assets of blu ecigs, a U.S. electronic cigarette company, for $135 million in cash. The acquisition provides Lorillard with the leading brand, offering the best consumer experience and unique social networking features, in the rapidly growing e-cigarette category.
blu ecigs will be a separate operating company of Lorillard and it is Lorillard's intention to retain blu ecigs' current management team and its headquarters in Charlotte.
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