MeadWestvaco Lowers Outlook for 3Q 2008
Oct. 14, 2008 - MeadWestvaco today announced that it is lowering its business outlook for the third quarter ended September 30, 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 impacted by hurricane-related business disruptions at its Evadale, Texas, and DeRidder, Louisiana, facilities.
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 $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," Luke said. "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 October 29.