(MWV) MeadWestvaco Impacted by Weak Demand

MeadWestvaco Corporation (MWV) announced that it expects pre-tax income from its business segments (before Corporate and other) in the range of $150 to $160 million for the fourth quarter of 2011. For the full year 2011, the company expects pre-tax income in the range of $835 million to $845 million. Meanwhile, free cash flow from operations is expected to be $550 million for the year.

The company stated that soft demand in the U.S. and European packaging markets led to a fall in production rates and sales volume during the quarter.

Earlier, the company had divulged that it intends to achieve $1 billion of incremental revenues over the next three to five years by pursuing growth strategies like commercial excellence, focus on emerging markets, and product innovation.

MeadWestvaco aims to achieve an average annual growth in the range of 5%-10% by developing a strong packaging platform that caters to targeted end markets, including food, beverage, tobacco, personal care, home and garden, healthcare, as well as corrugated packaging in Brazil.

Recently, the company has acquired Polytop Corporation – a Rhode Island based design and manufacturer of dispensing closures – for an undisclosed amount in order to broaden the company’s foothold in packaging end markets. It also aims to extend its footprints in the burgeoning international markets of China and India, where it plans to invest to enhance market share.

MeadWestvaco reported earnings of 67 cents in the third quarter of fiscal 2011 compared with 63 cents in the year ago quarter. Excluding special items, earnings were 70 cents in the quarter of compared with 62 cents in the year ago quarter. Total revenue increased 9% year over year to $1.64 in the quarter.

MeadWestvaco Corporation provides solutions to companies operating in the healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and commercial print industries. The company competes with International Paper Co. (IP), Republic Services, Inc. (RSG) and Weyerhaeuser Co. (WY).

The company plans to report the fourth quarter and full year 2011 results on Wednesday, January 25, 2011 before the market opens. Its shares currently maintain a Zacks #3 Rank (Hold rating) over the short term.

INTL PAPER (IP): Free Stock Analysis Report

MEADWESTVACO CP (MWV): Free Stock Analysis Report

REPUBLIC SVCS (RSG): Free Stock Analysis Report

WEYERHAEUSER CO (WY): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | | | | | | | Consumer Goods | Packaging & Containers

RSS feeds: International Paper Company | IP | MeadWestvaco Corporation | MWV | Republic Services Inc. | RSG | Weyerhaeuser Company | WY | Consumer Goods | Packaging & Containers |

Other Posts by | RSS Feed for this author