Lorillard Quarterly Profit Diminished by Tax

The impact of the federal excise-tax increase on retail cigarette dealers made for a bumpy first quarter for Lorillard(LO Quote), the maker of Newport cigarettes.

The company posted a 5.7% gain, but fell short of analysts' expectations. Its quarterly earnings rose to $184 million, or $1.09 s share, compared with $174 million, or $1 a share, a year ago. Analysts expected earnings of $1.15 a share.

Sales remained relatively flat at $917, compared with $921 million last year, as higher prices and lower costs offset decreased volumes from the tax increase. ...