Each issue of PaperMoney is approximately 500 fact filled pages.
Logout
Click here for Pulp & Paper Radio International
Items just for you
New publication added! Advertising Arguments 2015 book
Free Downloads
Search
My Profile
Login
Management Side
Technical Side
MeadWestvaco
Print
Richmond, Virginia, USA, 24 July 2006 -– MeadWestvaco Corporation (NYSE: MWV) today announced that results for the second quarter ended 30 June 2006 will be affected by weather-related disruptions and by more pronounced shifts in customer ordering patterns at its Consumer & Office Products business, as well as by certain corporate items.

Second quarter 2006 sales volume for the Consumer & Office Products business is expected to be lower versus the year-ago quarter due to the timing of shipments moving from the second quarter into the third and fourth quarters of the year. This change in timing is the result of customers shifting their order patterns to later in the year. In addition, the northeast floods that occurred in late June, resulted in the closure of the company's Sidney, New York, facility for three days at the end of the quarter. While full-year 2006 shipment volumes are expected to be in-line with last year, the combined effect of these developments will lower Consumer & Office Products' second quarter 2006 segment operating income by approximately 50% versus the comparable year-ago period.

In the second quarter 2006, corporate and other costs will be affected by charges for the permanent shutdown of the two previously announced idled paperboard machines, charges for severance and other employee benefits, relocation, and other one-time costs in conjunction with the company's corporate and packaging transformation activities. Excluding these items, corporate and other costs will be approximately USD 50 million.

"The northeast floods, which were tragic for many of our employees, compounded the accelerating dynamic of key back-to-school and office product customers shifting their orders closer to peak seasonal sell-through times," said John A. Luke, Jr., chairman and chief executive officer. "Further, as expected our Packaging operating profit will be higher than first quarter 2006 levels, but modestly below the comparable year-ago quarter. While our pricing and mix enhancement actions are gaining momentum, input costs remained challenging during the second quarter. However, with strong backlogs in bleached and coated board, we anticipate improved demand and better overall profitability year-over-year through the second half of 2006."

About MeadWestvaco

MeadWestvaco is a global packaging company that delivers high-value packaging solutions and products to the world's most recognized companies in the food and beverage, media and entertainment, personal care, cosmetic, and healthcare industries. The company also has market-leading positions in its Consumer & Office Products, Specialty Chemicals, and Specialty Papers businesses. MeadWestvaco, with operations in more than 29 countries, has been selected for the Dow Jones Sustainability Indexes, and manages all of its forestlands in accordance with internationally recognized forest certification standards. For more information, visit www.meadwestvaco.com.



Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: