MADRID, Spain - Imperial Tobacco, which sells Davidoff and Gauloises cigarette brands, said it will lower prices in Spain because of much lower profits linked to a weak economy and the country??s new smoking bans, the Financial Times reports.

Despite a recent price hike, the company will reduce prices "to protect our market position and the long-term sustainability of our Spanish business." Philip Morris International, whose Spanish presence includes Marlboro, cut prices on several brands sold in Spain recently.

Imperial responded by slashing prices for Fortuna and Ducados brands, along with other products. Alison Cooper, CEO of Imperial, said a few months ago that she thinks the Spanish decreases would "ameliorate next year."

The company forecasts an operating profits loss of ?110 million in Spain, but Imperial predicts the company will meet other profit projections in other countries.

Industry analysts aren??t sure if the Spanish cigarette market is unusual or if Imperial will discover tight markets elsewhere, too. "It could be that either Philip Morris or BAT feel there??s a point in the cycle where they??ll take a bit of a hit to keep people smoking," said an analyst.

Imperial has launched an app for smart phones that would show smokers the closest smoking bar to help stem its losses.