U.S. Tobacco Industry Is Enjoying Return to ‘Old Days,’ CEO Says
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The U.S. tobacco industry is looking more like the “old days,” with profits rising and smoker litigation on the decline, Reynolds American Inc. Chief Executive Officer Susan Cameron said.
The cigarette maker completed its more than $25 billion purchase of Lorillard Inc. on Friday, making it a stronger No. 2 in the market to Altria Group Inc. That new heft is expected to help increase profit margins and possibly raise retail prices. Recent court decisions also have made it harder for smokers to sue, bringing a tailwind to the industry.