Lorillard, Inc. Reports Fourth Quarter and Annual 2008 Results..

February 9, 2009 - 4th quarter 2008: Total Lorillard wholesale shipment volume for the fourth quarter of 2008 of 9.428 billion units increased 8.2% compared with the fourth quarter of 2007. Newport's domestic wholesale shipments increased 6.4% in the fourth quarter of 2008 compared to the fourth quarter of 2007. Based on Lorillard's proprietary retail shipment data, Newport continued to increase its retail market share during the fourth quarter of 2008 by 0.32 share points from 9.54% in the fourth quarter of 2007 to 9.86% in the fourth quarter of 2008.

Fiscal 2008 Results (year ended December 31, 2008): Net sales were $4.204 billion in 2008, compared to $3.969 billion in 2007. The 5.9% increase in net sales reflects higher average unit prices and higher net unit sales volume and was partially offset by higher sales promotion costs accounted for as a reduction in net sales. During 2008, Lorillard's domestic wholesale unit shipments increased by 3.2% versus an estimated industry decline of 3.3%. Gross profit was $1.776 billion in 2008, compared to $1.662 billion in 2007. The increase in gross profit reflects an increase in net sales, partially offset by higher manufacturing costs and higher costs related to the State Settlement Agreements. Total wholesale shipment volume increased 3.0% over 2007. Newport retail market share increased by 0.37 points over 2007 to 9.92%.
Judy Hong, a Goldman Sachs Group Inc. analyst in New York: Newport, the top-selling U.S. menthol cigarette, increased its share of smokers after Winston-Salem, N.C.-based Reynolds American Inc. reduced marketing of Kool, a rival brand. Demand for Newport spurred an 8.2% increase in Lorillard shipments to 9.43 billion cigarettes.

Lorillard Inc. Q4 2008 Earnings Call Transcript..

Lorillard Tobacco Company has agreed to donate $1 million to the International Civil Rights Center and Museum to commemorate the unique role that Greensboro played in advancing the civil rights movement. The Center will be located in the original F.W. Woolworth building on downtown Greensboro's Elm Street and will honor the sit-in of February 1, 1960 that took place there, and other civil rights accomplishments. The donation is part of an additional $10 million in funding for the site that was announced during the Center's 49th annual awards gala on Saturday night. (Lorillard Tobacco Company Donates $1 Million to International Civil Rights Center and Museum, SOURCE Lorillard, Inc, 2/2/2009)

Reference: Lorillard, Inc. Reports Fourth Quarter and Annual 2008 Results, PRNewswire-FirstCall, 2/9/2009; Newport News Lorillard profit up on demand for menthol brand, CSP Daily News, 2/10/2009.