RICHMOND, Va. (AP) — Newport maker Lorillard Inc.’s profit fell 4.2 percent in the second quarter as sales of its market-leading Blu electronic cigarettes dropped and it sold fewer cigarettes.

The nation’s No. 3 tobacco company, which is being acquired by competitor Reynolds American Inc., said Wednesday that e-cigarette sales to fall 35 percent to $37 million in the quarter as it faced increased competition from Reynolds and Altria Group Inc., which both began to expand their own e-cigarette brands nationally during the quarter.