Jump to full article: Business Wire, 2006-05-16
Intro: Loews' ratings upgrade reflects operating earnings and market share recovery at Lorillard Inc. (Lorillard), Loews tobacco subsidiary, and the reduced litigation risk of the U.S. tobacco industry. Lorillard is the most significant operating earnings and cash flow provider to the company. . . .
The Florida Supreme Court agreed to hear the plaintiffs' appeal and heard oral argument in November 2004. While a decision is expected in the near term (issued on Thursdays), Fitch does not see a high likelihood of near term financial risk in this case. Nonetheless, if the Florida Supreme Court rules in favor of the defendants, plaintiffs could seek review by the U.S. Supreme Court.
Judge Kessler's decision in the DoJ case is expected in the near term following the conclusion of the trial in June 2005 and post-trial motions through October 2005. . . .
Beyond these legal issues, there are a number of continuing negative pressures on the industry including extensive smoking bans which dampen demand, rising excise taxes which continue to raise per pack costs and reduce pricing flexibility, and a competitive operating environment. Overall domestic consumption continues to decline at low single digit levels annually
Jump to full article » |