<div id="subtitle">Lorillard Inc. reports 4Q earnings Monday; analyst eye menthol segment, cigarette volumes</div><div><p>Lorillard Inc., the nation's third-biggest cigarette company, reports its fourth-quarter results before the stock market opens Monday.</p><p>WHAT TO WATCH FOR: Any sign the maker of Newport cigarettes is losing market share loss among menthols or gaining in the discount segment — and any sign that cigarette volumes are rebounding from sharp drops in volume experienced industrywide in 2009 due to a federal tax hike.</p><p>Analysts believe the Greensboro, N.C., company continues to have the industry's best outlook for profit margin, price per pack and volume.</p><p>Despite the Food and Drug Administration's pending study on the public health impact of menthol, the segment continues to grow as the rest of the cigarette market shrinks. A scientific committee being organized by the FDA must study and issue a report on the public health impact of menthol cigarettes.</p><p>The top two U.S. cigarette companies — No. 1 Philip Morris USA, owned by Richmond, Va.'s Altria Group Inc., and No. 2 Reynolds American Inc., based in Winston-Salem, N.C. — are ramping up efforts to grab some of the menthol market away from Lorillard.</p><p>Lorillard is working to grow its Maverick discount brand as the weak economy and high unemployment have caused some consumers to switch to lower-priced brands.</p><p>WHY IT MATTERS: As demand for cigarettes continues to fall, any rebound in volumes could signal consumers are adjusting to April's 62-cents-per-pack federal tax hike, which most cigarette makers accompanied with price hikes.</p><p>WHAT'S EXPECTED: Analysts polled by Thomson Reuters on average expect Lorillard to earn $1.51 per share on revenue of $1.23 billion.</p><p>LAST YEAR'S QUARTER: Lorillard reported profit of $1.53 per share on revenue of $1.09 billion.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68521840&bid=informcom" /></div><div id="copyright"><div>

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