Lorillard q3 2009 results - keypoints..

October 27, 2009 - Martin Orlowsky, Chairman, President and Chief Executive Officer. Lorillard, the oldest continuously operating U.S. tobacco company, said Monday, October 26th that its third-quarter profit dipped 1 percent, pinched by higher expenses and consumers tightening their spending. Total Lorillard wholesale shipment volume for the third quarter of 2009 was 9.458 billion units Total domestic industry wholesale shipments declined 12.6% (not adjusted for inventory, if adjusted little over 10%) versus Lorillard's 6.1% decline comparing the third quarter of 2009 with the third quarter of 2008. Newport domestic retail market share increased by .28 points over the year ago period to 10.29%.Total domestic industry wholesale shipments decreased an estimated 12.6% for the third quarter of 2009 compared to the third quarter of 2008. Lorillard's domestic wholesale shipments decreased 6.1% for the same period. This decrease in domestic wholesale shipments in the third quarter of 2009 reflects the impact of the $0.62 increase in the federal excise tax on cigarettes from $0.39 to $1.01 per pack on April 1, 2009. Newport's domestic wholesale shipments decreased 9.8%, while Maverick's domestic wholesale shipments increased 51.9% in the third quarter of 2009 compared to the third quarter of 2008.

Based on Lorillard's proprietary retail shipment data, Newport continued to increase its domestic retail market share during the third quarter of 2009 by .28 share points to 10.29% in the third quarter of 2009 from 10.01% in the third quarter of 2008.

Total menthol segment share of the wholesale market during the third quarter of ‘09 was 28.9% an increase of seven tenths of a point over the third quarter of 2008. Newport’s share of the menthol market was 34.6% in the third quarter of ‘09 up slightly over the third quarter of ‘08. Lorillard was up 0.76 of the share point in the third quarter of ‘09 versus ‘08, achieving 11.89% share of the retail cigarette market. Newport’s retail share comparison of the same period was up 0.26 of a share point reaching 10.29% of the total retail market.

Marlboro 54 - The biggest difference in the menthol segment, I believe in the third quarter one would have to attribute to Marlboro 54, because that took full effect in the third quarter. They only had a couple of week or so worth of wholesale shipments in the third quarter with no real discernible impact at retail in the second quarter. So they were some degree of very deep discounting on Marlboro 54, although I will add I don’t think it had a very substantial overall effect negatively on Newport, because I don’t think the scope of that program was such that it would. So I don’t know if I’d say there were any differences, we did increase our spending modestly and I wouldn’t necessarily sort of describe it as earth shattering in nature.

Triumphs SNUS is performing inline with its competitive adventives, which is pretty flat and it’s not showing any real dynamic growth and it’s no different than the category is frankly.

David Taylor, Lorillard Chief Financial Officer - FDA fees minimal line $2.5 million, pretty small.

FDA study of menthol - here’s no menthol study per se. The committee will review existing menthol studies and they have about a year by which they have to report out whatever their conclusion recommendation is. So it really doesn’t allow for a time to conduct long term studies. So we fully expect that the committee will review existing data regarding the menthol question for one. We’re not aware of the committee having been constituted yet.

Lorillard Inc. Q3 2009 Earnings Call Transcript..

Reference: Lorillard, Inc. Reports Third Quarter 2009 Results, PR Newswire, 10/26/2009.