Cigarette manufacturer Lorillard Inc. declared that its net profit increased 7 % in the fourth quarter as it sold more cigarettes at raised prices, exceeding Wall Street expectations and continuing to oppose to the trend of dropping cigarette volumes.

The manufacturer of Maverick, Newport and True cigarettes stated that it gained $259 million, or $1.74 per share, in comparison to $242 million, or $1.52 per share, a year earlier. The per share result was backed by a lower number of shares outstanding.

The world’s third-largest tobacco manufacturer stated that gaining excluding excise levies raised more than 9% to $1.02 billion. Analysts expected Lorillard to gain $1.68 per share on profit of $920.4 million. Its shares increased 1.99, or 2.65 %, to $76.99. “Lorillard worked double tides,” CEO Bill Laurie declared in an interview. For instance Lorillard, based in Greensboro, N.C., stated that its cigarette volume raised 4.5% to 9.46 billion cigarettes on gains of 2.2% of about 25% of its lower- priced Maverick brand. The company also stated that the introduction of its non-menthol version of Newport cigarettes lead to this increase.

Competitors Altria Group Inc. and Reynolds American Inc. also reported selling less tobacco products in the quarter. The ailing economy and high unemployment have forced many smokers to switch to cheaper brands during the recession in order to save their money. Lorillard’s Maverick brand and Reynolds American’s Pall Mall were among the beneficiaries.

The majority of tobacco industries have been increasing prices thus keeping profits up as the recession and diminishing demand cut into tobacco products sales. Increases in duties, smoking bans and health concerns have made the cigarette business stricter. Lorillard’s market share raised 1.2 points during the quarter to 13.2 % of the U.S. market. In spite of the Food and Drug Administration’s continuous study of the public health influence of menthol cigarettes, this kind of cigarettes is stably than common cigarettes in a declining market. Within a whole year, the manufacturer stated that its net gains increased 8.5% to a record $1.03 billion, or $6.78 per share, in comparison to $948 million, or $5.76 per share, in the year before. Clear profit excepting excise duties increased 10% to $4.05 billion.

Lorillard, the U.S. oldest tobacco manufacturer, appeared from Loews Corp. in 2008.

Altria Group, the owner of the largest cigarette producer - Philip Morris USA stated that increasing prices and reducing costs helped its fourth-quarter net profit raise approximately 27%. The amount of cigarettes it shipped dropped 7%. Meanwhile, Reynolds American declared that its income increased more than 43% on higher prices and lower costs. The amount of cigarettes the producer sold decreased 5.2%.