LONDON, February 12, 2013 /PRNewswire/ --

The United States cigarette industry faces a number of challenges that have adversely affected the growth outlook for companies operating in this sector. These have led to a shrinking market size of cigarette sales by volume over the past years, and this trend could continue unless the main industry leaders find apt solutions to the current problems. Altria Group Inc. (NYSE:MO), Lorillard Inc. (NYSE:LO) and other major industry giants have resorted to increasing cigarette prices to counter declining revenues. StockCall has taken an interest in these companies and you can now sign up to download the free technical research on Altria Group and Lorillard at

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Key threats to the Cigarette Industry

Restrictions already imposed by the FDA under the Family Smoking Prevention and Tobacco Control Act (the "FSPTCA") enacted in June 2009; actual and proposed excise tax increases; bans and restrictions on tobacco use imposed by governmental bodies and private establishments; other illicit trade practices, including the sale of duplicate low quality tobacco products by third parties; and most crucial of all the increasing health awareness are all key threats to the industry. In addition, companies have damaged their brand equity and hindered revenue growth in the last few years. However, due to heavy brand loyalty the cigarette industry has extremely low price demand elasticity.

Earnings Figures - Altria Group

Cigarettes sales constitute 70% of the total revenue for Altria Group and smokeless products constitute 16% roughly. Altria Group reported revenue figure of $24 billion and an adjusted EBITDA figure of $7 billion in 2012. The less sensitivity is likely to keep the revenue forecast in-line, even though unit sales are likely to decline. The stock however seems on a bullish run.  Sign up today to read the free research report on Altria Group Inc. at

http://www.StockCall.com/MO021213.pdf  

Earnings Figures - Lorillard

The rise in net income in the third quarter broke a streak of two consecutive quarters of year-over-year profit declines. In the third quarter, net income for Lorillard increased by 6%, while the figure dropped 2.4% in the second quarter and 10.1% in the first quarter. The company reported revenue increase for two quarters in a row. In the most recent quarter, sales rose 2.4% year-over-year to $1.66 billion. The quarter prior to that that, sales grew by 2.3%. Register to download the free technical analysis on Lorillard Inc. at

http://www.StockCall.com/LO021213.pdf  

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