The third-biggest cigarette maker in the US, Lorillard Inc. has seen a decline in its income for the second quarter. This has happened since the company faced lower volumes and was also facing increased expenses because of higher promotional costs.

Net income of the company went down by 8 per cent as the company raised its prices.

Some of the known brands of Lorillard are Newport, Maverick and True cigarettes. In real terms the sales of cigarettes was down by 9.78 billion as compared to the last year.

The company was unable to keep up with the restocking efforts of the retailers and wholesalers after they started to reduce the cuts they had made last year.

Weak economy and the high rate of unemployment had forced the company to reduce its price and when this time around it increased the same, the sales went down.

During the last quarter, the sales of the economy cigarettes had gone up by 26.5 per cent, but for this quarter as well it faced a decline. So was the fate of the Newport brand, which lost market share in the menthol market.