Richmond, Virginia, USA, 14 October 2008 – MeadWestvaco Corporation (NYSE: MWV) today announced that it is lowering its business outlook for the third quarter ended 30 September 2008, due to the impact of higher input cost inflation, lower volumes in the Consumer & Office Products business, and weakening demand in some packaging end markets, particularly in the month of September. The company also was affected by hurricane-related business disruptions at its facilities in Evadale, Texas, and DeRidder, Louisiana.
MWV’s combined business segment profits for the third quarter 2008 will be modestly above previous quarter levels, but below third quarter 2007 levels. Cash and cash equivalents at the end of the third quarter were approximately USD 550 million and the company has no short-term debt or significant maturities due until 2012. The company’s cash position benefited from proceeds generated by the sale of the Kraft division and from cash generated by operating activities in the third quarter.
“Like many others companies, MWV must now address a particularly challenging and uncertain environment,” said John A. Luke, Jr., chairman and chief executive officer. “Our global growth strategies and strong balance sheet are clear advantages in the face of these challenges and we will continue to leverage them to generate long-term value for our shareholders. We are also committed to accelerating our productivity programs and reinforcing a very disciplined approach to capital allocation and working capital. Our ability to adjust to the emerging economic and market realities will be critical, and MWV’s leadership is committed to doing so successfully.”
The company will announce and review its third quarter results on 29 October.
MeadWestvaco Corporation (NYSE: MWV), provides packaging solutions to many of the world’s most admired brands in the healthcare, personal and beauty care, food, beverage, media and entertainment, and home and garden industries. The company's businesses include Consumer & Office Products, Specialty Chemicals, and the Community Development and Land Management Group, which sustainably manages the company’s land holdings to support its operations, and to provide for conservation, recreation and development opportunities. With 23,000 employees worldwide, MWV operates in 30 countries and serves customers in more than 100 nations. MWV manages all of its forestlands in accordance with internationally recognized forest certification standards, and has been named to the Dow Jones Sustainability World Index for the fifth consecutive year. For more information, visit www.mwv.com.