http://www.tobacco.org/newsfeed/org/lorillard.rss Latest top tobacco news headlines en-us http://us.rd.yahoo.com/finance/external/investors/SIG=131li9v7i/*http://news.investors.com/article/600618/201202091030/philip-morris-lorillard-top-estimates.htm?ven=yahoocp&ven=yahoo http://tobacco.org/news/333600.html Cigarette maker Philip Morris International (PM) beat fourth-quarterexpectations, while smaller rival Lorillard (LO) also recorded strong gains during the quarter and hiked its quarterly dividend. Both companies claimed market share gains. Philip Morris International, which was split off from Philip Morris USA in 2008, said earnings per share climbed 13% to $1.10, a penny above estimates. Revenue rose 9% to $7.7 billion. The tobacco giant also issued an upbeat 2012 profit forecast. It sees full-year EPS of $5.25-$5.35, vs. $4.85 in 2011, the midpoint topping analyst projections by 11 cents. Philip Morris shares jumped 3% to 80.39. Shares have climbed 33% from a closing price of 60.45 on Oct. 7. Investor's Business Daily name@domain.com (JAMES DETAR, INVESTOR'S BUSINESS DAILY) Thu, 09 Feb 2012 05:00:00 GMT http://community.nasdaq.com/News/2012-02/lorillard-exceeds-ups-dividends-analyst-blog.aspx?storyid=119810 http://tobacco.org/news/333593.html Lorillard Inc. ( LO ) delivered better-than-expected fourth-quarter and fiscal year 2011 adjusted earnings of $2.20 and $7.88 per share, beating the Zacks Consensus Estimate of $1.96 and $7.65 per share, respectively. The results also exceeded the prior-year quarterly earnings by 26.4% and prior-year earnings by 16.2%. The adjusted earnings exclude the favorable impact on tobacco settlement expense of $25 million. However, the adjusted results include the benefit of the company's share repurchase program which resulted in lower outstanding shares and thus contributed 22 cents and 63 cents per share to the increase in the earnings of fourth quarter and fiscal year 2011, respectively. NASDAQ Thu, 09 Feb 2012 05:00:00 GMT http://seekingalpha.com/article/354311-lorillard-s-ceo-discusses-q4-2011-results-earnings-call-transcript http://tobacco.org/news/333559.html Murray S. Kessler Thank you, Bob, and good morning, everyone. Quarter and years for that matter don't get much better than this. Lorillard finished an already strong year with an outstanding fourth quarter, contributing to record high levels of net sales, operating income, net income, diluted earnings per share and market share for 2011. It's a tribute to the strength of our brands, people and business model. As I do my review of the quarter and the year, I will be commenting on business results adjusted downward to exclude a sizable benefit we received as a result of the large mark-to-market charge Reynolds American took due to their change in pension accounting, which favorably affected our state settlement cost. David will explain the accounting impact and the reason we have chosen to exclude this benefit in our underlying result. So let's get started with Q4. Lorillard continued to buck industry trends, growing domestic wholesale shipments in the fourth quarter 5.5% versus year ago in the backdrop of an industry that declined 2.7%. . . . We saw a slight reduction in the legal fees and expenses associated with the Engle litigation activity this quarter as compared to last year. These costs correlate with the trial calendars in Florida. Also, the costs incurred last year in support of the company's strategic initiatives and the launch cost in support of last year's introduction of Newport Non-Menthol were not repeated this year. . . . David J. Adelman - Morgan Stanley, Research Division Do you think from a credit-rating agency perspective, the key gating factor to give you more scope within your current ratings is greater clarity on the Engle Progeny situation? David H. Taylor Well, that's just one of many things that the rating agencies take into account. For tobacco companies, litigation has always been a big deal. Regulation has become a much bigger deal. And our focus only on cigarettes is a deal. Our geographic concentrations are things they consider. Our relative size is something they consider. So there's a lot of things they think about. I don't know that the litigation is the primary gating factor in their minds, but it's one big one. Seeking Alpha blog network transcripts@seekingalpha.com (now, you should have received a copy of our fourth quarter) Thu, 09 Feb 2012 05:00:00 GMT http://www.pressdemocrat.com/article/20120209/APF/1202091037 http://tobacco.org/news/333532.html Cigarette maker Lorillard Inc. said Thursday that its net income grew nearly 20 percent in the fourth quarter as it sold more cigarettes at higher prices. The nation's third-biggest tobacco company said it earned $310 million, or $2.32 per share, for the three-month period ended Dec. 31, up from $259 million, or $1.74 per share, a year ago. The per-share figure was boosted by a lower number of shares outstanding. Lorillard, based in Greensboro, N.C., said adjusted earnings that exclude a benefit from expenses related to a tobacco settlement were $2.20 per share, beating analyst expectations of $1.94 per share. Revenue excluding excises taxes rose about 10 percent to $1.12 billion. Analysts polled by FactSet expected revenue of $1.09 billion. Santa Rosa Press Democrat Thu, 09 Feb 2012 05:00:00 GMT http://www.businessweek.com/news/2012-01-26/lorillard-doesn-t-need-merger-to-reward-investors-ceo-says.html http://tobacco.org/news/332650.html Lorillard Inc., the subject of takeover speculation for more than three years, doesn't need to combine with another tobacco producer to reward shareholders, Chief Executive Officer Murray Kessler said. "It would be a high hurdle for somebody to come in" and acquire Lorillard, Kessler, 52, said yesterday in a telephone interview from the company's headquarters in Greensboro, North Carolina. "We can deliver a double-digit shareholder return over the long term. Lorillard can continue to run as an independent company and create tremendous value." The spinoff of Lorillard from Loews Corp. in June 2008 prompted speculation by analysts that the third-largest U.S. tobacco company may draw takeover bids amid shrinking cigarette demand. Lorillard's Newport brand, the top-selling U.S. menthol cigarette, is boosting sales, making it attractive once the U.S. Food and Drug Administration decides how to regulate the minty flavoring, Thomas Russo, a partner at Gardner Russo & Gardner in Lancaster, Pennsylvania, said in an interview yesterday. Business Week/Bloomberg orcburritt@bloomberg.net (Chris Burritt) Thu, 26 Jan 2012 05:00:00 GMT http://tobacco.org/news/332085.html Since my first article "Southern Copper vs. Freeport-McMoRan: Higher Yield Tips The Scales" was well received by a lot of people for its short and precise format, I would like to proceed with these "Stock A vs. Stock B" articles as a series, if I continue to receive good feedback about the format and the series in general. For those of you who did not read the first article of this series, I do not intend to slam any stock. I just present my analysis and would appreciate any constructive feedback and discussion in the comments section. Part 2 of this series involves Philip Morris International (PM) vs. Altria (MO) vs. Lorillard (LO) vs. British American Tobacco (BTI). I've purposefully left out Reynolds American (RAI) from the article to keep the balance: two US only companies (MO and LO) and two International companies (PM and BTI). Also, I've ignored small(er) cap companies like Vector Group (VGR) and Universal Corporation (UVV). I mentioned in my first article that I would not cover the same points in the pros and cons of the companies I am dealing with, but its particularly difficult in this case as it involves 4 stocks. So, one or two points might get repeated but I believe those are really needed to drive the point home. So here we go. Seeking Alpha blog network Mon, 16 Jan 2012 05:00:00 GMT http://www.tobacco-on-trial.com/2011/12/31/order-28-remand-consent-order-between-usa-intervenors-and-lorillard-re-document-disclosure-obligations-dec-27-2011/ http://tobacco.org/news/331279.html Upon consideration of the Joint Motion for Consent Order Between the United States, the Public Health Intervenors (hereafter "Plaintiffs"), and Lorillard Tobacco Company (hereafter "Lorillard") Concerning Document Disclosure Obligations Under Order #1015, and the entire record herein, it is hereby ORDERED that: A. Lorillard will deposit, on or before the dates indicated below, the amounts indicated below with the Registry of the Court: Friday, January 13, 2012 $217,000 Monday, December 31, 2012 $217,000 Tuesday, December 31, 2013 $216,000 Total: $650,000 B. The Registry of the Court will, upon receipt of each of these installments, disburse the funds to the University of California, San Francisco (hereafter "UCSF"). C. Lorillard will make these payments primarily in lieu of its prior obligations under Order #1015 to code the person mentioned, organization mentioned, and brand mentioned fields and as part of a resolution of the scope of Lorillard's coding obligations for documents posted on its public document websites as a result of production in court or administrative actions in the United States concerning smoking and health, marketing, addiction, low-tar or low-nicotine cigarettes, or less hazardous cigarette research both prior to November 15, 2011, and on or after that date. . . . A. This Consent Order is without prejudice to Lorillard's argument that Order #1015 does not apply retrospectively, and no party will cite this Consent Order as a basis for arguing that any other part of Order #1015 applies retrospectively. Tobacco On Trial Sat, 31 Dec 2011 05:00:00 GMT http://www.tobacco-on-trial.com/2011/12/22/proposed-order-___-remand-consent-order-between-usa-and-lorillard-re-document-disclosure-obligations-under-order-1015-dec-21-2011/ http://tobacco.org/news/330852.html Upon consideration of the Joint Motion for Consent Order Between the United States, the Public Health Intervenors (hereafter “Plaintiffs”), and Lorillard Tobacco Company (hereafter “Lorillard”) Concerning Document Disclosure Obligations Under Order #1015, and the entire record herein, it is hereby ORDERED that: . . . II. Monetary Terms A. Lorillard will deposit, on or before the dates indicated below, the amounts indicated below with the Registry of the Court: Friday, January 13, 2012 $217,000 Monday, December 31, 2012 $217,000 Tuesday, December 31, 2013 $216,000 Total: $650,000 B. The Registry of the Court will, upon receipt of each of these installments, disburse the funds to the University of California, San Francisco (hereafter “UCSF”). C. Lorillard will make these payments primarily in lieu of its prior obligations under Order #1015 to code the person mentioned, organization mentioned, and brand mentioned fields and as part of a resolution of the scope of Lorillard’s coding obligations for documents posted on its public document websites as a result of production in court or administrative actions in the United States concerning smoking and health, marketing, addiction, low-tar or low-nicotine cigarettes, or less hazardous cigarette research both prior to November 15, 2011, and on or after that date. . . . A. This Consent Order is without prejudice to Lorillard’s argument that Order #1015 does not apply retrospectively, and no party will cite this Consent Order as a basis for arguing that any other part of Order #1015 applies retrospectively. Tobacco On Trial daniel.crane-hirsch@usdoj.gov (Gene Borio) Wed, 21 Dec 2011 05:00:00 GMT http://gawker.com/5864485/only-dumb-kids-can-make-smoking-popular-again http://tobacco.org/news/330347.html But Lorillard, maker of the Newport brand, is sticking to a strategy of selling only cigarettes, and so far it's paying off: Cigarette shipments at the No. 3 U.S. tobacco company are up for the second year in a row, and revenue rose 9.1% to $4.85 billion in the 2011 nine months. Volume, meanwhile, rose 7.4% in the period, while it sank roughly 5% at both Altria and Reynolds. Lorillard's overall share of the U.S. cigarette market is up to 14% from 11% in 2008. So all those nonbelieving tobacco companies that ran off and started selling lip-pouch tobacco at the first sign of trouble are suffering, while Lorillard, which manned up and bravely stood by its Newports through the hard times, is now succeeding. There's a lesson there, America. "Lorillard has benefited because its smokers are younger on average... 45% of smokers 12 to 17 years old used menthol brands." When times get tough, take advantage of kids. They're easy. Gawker Fri, 02 Dec 2011 05:00:00 GMT http://www.kansascity.com/2011/12/08/3309409/shook-hardy-loses-part-of-its.html http://tobacco.org/news/330229.html Part of Shook Hardy & Bacon’s famed tobacco practice is moving to a different law firm. Hughes Hubbard & Reed, a New York-based firm, will open a Kansas City office to assume Shook’s defense work for Lorillard Tobacco. Kansas City-based Shook retains Philip Morris USA, the industry’s dominant tobacco company best known for its Marlboro brand. Industry insiders said the move reflected tobacco companies’ desire to be represented exclusively by their outside law firms rather than have a firm also represent an industry rival. Lorillard and Philip Morris recently have taken different stances on how to respond to tighter regulatory controls by the Food and Drug Administration. Eight Shook lawyers — six partners and two of counsel to the firm — will move to the Hughes firm, effective Jan. 1. Kansas City Star stafford@kcstar.com (DIANE STAFFORD The Kansas City Star ) Thu, 08 Dec 2011 05:00:00 GMT http://molawyersmedia.com/blog/2011/12/08/shooks-tobacco-practice-shaken-up/ http://tobacco.org/news/330126.html As Lorillard pulls its business from Shook, Hardy & Bacon, eight of the firm’s attorneys and about 16 staffers will move down the street to represent the tobacco giant at another firm. New York firm Hughes Hubbard, which has had no Midwest presence, is opening a Kansas City office on Jan. 1, largely to accommodate Lorillard, ... Login required Missouri Lawyers Media Thu, 08 Dec 2011 05:00:00 GMT http://amlawdaily.typepad.com/amlawdaily/2011/12/hughes-hubbard-opens-in-kansas-city.html http://tobacco.org/news/330115.html Hughes Hubbard & Reed is making a move into America's heartland as of January 1 with the addition of a products liability litigation team from Kansas City–based Shook, Hardy & Bacon, the two firms confirmed Wednesday. The surprising expansion for New York–based Hughes Hubbard comes as regulatory changes prompt tobacco companies to insist that their outside law firms cut ties to industry rivals. In adding a Shook group that totals between 20 and 25 lawyers, analysts, and staffers, Hughes Hubbard will also take over all of Shook's work for Lorillard Tobacco in a transition expected to span several months, according to Shook chair John Murphy. Shook, meanwhile, will continue to represent longtime client Philip Morris USA, Murphy says. . . . Until the 1990s, the industry presented more of a united front, says Sugarman. That unity began to crumble with the landmark $200 billion Tobacco Master Settlement Agreement in 1998, in part because the settlement stipulated that several industry groups disband, he says. That tobacco industry rivals are following divergent paths is no different than what has happened in other other industries, according to Murphy, who adds that Hughes Hubbard was the only firm in the running to take over Shook's Lorillard team. Murphy says the losses won't have much effect on Shook, that the entire process has been "a seamless transition," and that "the defense of industry will continue seamlessly." AmericanLawyer.com theamlawdaily@alm.com ( Posted by Sara Randazzo) Wed, 07 Dec 2011 05:00:00 GMT http://bostonglobe.com/metro/2011/12/03/fees-awarded-smoking-case/iyIuChrhAPpwRS2B0fRADP/story.html http://tobacco.org/news/329829.html A man was awarded millions of dollars in attorneys' fees and costs pursuant to a verdict in a 2010 case that found the Lorillard Tobacco Co. liable in the smoking-related death of his mother. The order by Superior Court Judge Elizabeth M. Fahey was made public on Thursday. Willie Evans is the son of Marie R. Evans, who died of lung cancer in June 2002 Boston Globe Sat, 03 Dec 2011 05:00:00 GMT http://online.wsj.com/article/SB10001424052970204517204577046730800881956.html?ru=yahoo&mod=yahoo_hs http://tobacco.org/news/329803.html Fewer Americans smoke cigarettes these days, but Lorillard Inc. is betting it can buck the trend. Last year, as part of a decades-long decline, the percentage of U.S. adults who smoke dropped below 20%. Altria Group Inc. and Reynolds American Inc., the two largest U.S. tobacco companies by sales, have begun diversifying into smokeless tobacco products, which are less harmful than cigarettes, according to studies. Meanwhile, the federal government continues to tighten cigarette regulation, and it's considering a crackdown on menthol brands, which account for 90% of Lorillard's sales. But Lorillard, maker of the Newport brand, is sticking to a strategy of selling only cigarettes, and so far it's paying off: Cigarette shipments at the No. 3 U.S. tobacco company are up for the second year in a row, and revenue rose 9.1% to $4.85 billion in the 2011 nine months. Volume, meanwhile, rose 7.4% in the period, while it sank roughly 5% at both Altria and Reynolds. Lorillard's overall share of the U.S. cigarette market is up to 14% from 11% in 2008. The performance has shown up in Lorillard's stock price, which is up 37% this year. Lorillard's strategy is being spearheaded by Murray Kessler, who became Lorillard's chief executive in September 2010 after heading UST Inc., a smokeless tobacco company acquired by Altria in 2009. Mr. Kessler doesn't smoke cigarettes, preferring snuff, a habit he picked up at his previous job. But one of his first decisions at Lorillard was to kill a proposed smokeless tobacco product. In an interview at Lorillard's Greensboro, N.C., headquarters, where ashtrays filled with cigarette butts are still common, the 52-year-old Mr. Kessler said it could be decades before smokeless products, which are growing but are less than a tenth of U.S. tobacco sales, surpass cigarettes. The Wall Street Journal Interactive Edition Fri, 02 Dec 2011 05:00:00 GMT http://boston.citybizlist.com/7/2011/12/1/Superior-Court-Awards-Plaintiff%E2%80%99s-Attorneys%E2%80%99-Fees-And-Costs-Against-Cigarette-Manufacturer.aspx http://tobacco.org/news/329763.html The Massachusetts Superior Court awarded attorneys' fees and costs in the watershed tobacco case Evans v. Lorillard, which rendered a judgment in the amount of $116 million plus 90% interest for the estate of Marie Evans, a woman who died of lung cancer in 2002. In this precedent-setting case, the Honorable Elizabeth M. Fahey, Justice of the Superior Court awarded the plaintiff $2,597,377.67 in attorneys' fees and costs pursuant to the Massachusetts Consumer Protection Act. While the court had never awarded more than $400 per hour for attorneys' fees, the judge made an exception in this case "given the skill exhibited by the plaintiff's attorneys - who outmaneuvered Lorillard's attorneys despite being outnumbered - and the remarkable result they achieved." Judge Fahey determined that such an award was reasonable as Davis Malm Attorney Michael Weisman took a risk in taking the case "despite knowing that prior tobacco litigation had been almost completely unsuccessful in garnering actual monetary damages for plaintiffs." Citybizlist Thu, 01 Dec 2011 05:00:00 GMT