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· Business (Tobacco)
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· FDA
· Lorillard
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Jump to full article: AP, 2009-10-23
Author: MICHAEL FELBERBAUM, The Associated Press
Intro: 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. . . .
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.
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