Lorillard, Inc. (LO), the third largest U.S. tobacco company and owner of blu eCigs, slips Thursday after missing with Q1 earnings, but issuing revenue that topped the Street view.
Q1 EPS increased 4.5% over last year to $0.69, below the consensus estimate in the Capital IQ survey for $0.72. Sales of $1.59 billion are up from $1.58 billion a year earlier and topping the Street view for $1.2 billion.
Lorillard also responded to proposed regulations published today by the U.S. Food and Drug Administration (FDA) regarding the electronic cigarette industry:
Lorillard applauds the Agency’s initial efforts to establish a reasonable regulatory framework for the electronic cigarette category. Lorillard has long-supported reasonable science-based regulation of electronic cigarettes such as establishing minimum age-of-purchase requirements, setting product quality and safety standards, and listing of ingredients and other relevant consumer information. In fact, while waiting for FDA guidance, blu eCigs has implemented meaningful measures to limit access of individuals under age 18 to blu eCigs’ advertising and promotional activities and to prevent minors from purchasing blu eCigs’ products.
“It appears that the FDA is taking a science-based approach, and that the proposed rule itself defines a constructive process that recognizes that e-cigarettes are different than combustible cigarettes. Despite what I am sure will be a robust give-and-take process over the comings months, we remain committed to our belief that electronic cigarettes represent a major opportunity to align the interests of business and public health. We look forward to working collaboratively with the FDA through the notice-and-comment rulemaking process to devise a reasonable, scientifically-based regulatory framework covering e-cigarettes,” said CEO Murray S. Kessler.
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