Cigarette Maker Posts 1Q Profit

Cigarette maker Lorillard, Inc. posted a first-quarter net income profit of seven percent Tuesday, The Associated Press reports. The increase came from higher prices on the cigarette maker’s Newport and Maverick brands. Lorillard sold nearly 10 percent more cigarettes on gains of eight percent from Newport and increases of nearly 23 percent for brands such as Maverick and Old Gold.

Lorillard, the nation’s third-largest tobacco company, reported a net income of $248 million, or roughly $1.71 per share, for the period that ended March 31. Lorillard’s income was up $16 from the $232 million reported last year. The Greensboro, N.C. tobacco giant said its revenue excluded excise taxes, which rose 14 percent. According to Lorillard, non-menthol Newport cigarettes introduced in November attributed to the increase in volume, although the company ending up spending more just promoting the new product. In a conference call with investors, CEO Murray Kessler said the Newport brand is just very strong and continues to organically grow."