(AP) — Lorillard Inc.’s profit fell 4.2 percent in the second quarter from a year ago as sales of its electronic cigarettes dropped. The tobacco company, which is being acquired by competitor Reynolds American Inc., said Wednesday that increased competition and lower prices on rechargeable kits caused sales of its Blu electronic cigarettes to fall 35 percent in the quarter to $37 million from $57 million a year ago. “Despite a challenging quarter on e-cigs domestically, Blu remained the clear industry leader and we remain bullish on the outlook for electronic cigarettes in general,” said CEO Murray Kessler.
Category:E-Cig Articles Archives – PNN ONLINE – Electronic Cigarettes, Vape Pens, Vaporizers & More
“That’s what makes the stocks an interesting investment,” Lavery said. “If you can grow your revenue on shrinking volumes, especially with periodic cost rationalization, you can grow your margins as well. So profits grow and they throw off a lot of cash.
Reynolds, Altria Lead Smokers Toward Tobacco’s New Era – Yahoo Finance
Certain countries restrict sales of electronic cigarettes. The industry currently suffers from suspicion and uncertainty. Are e cigs safe, or is that just a vapor screen to promote sales?
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