MeadWestvaco posts loss on charges

 

27 July 2005 – Stamford (CT): MeadWestvaco has reported a Q2 net loss of $83 million compared to net income of $47 million in Q2 2004, after accruing $56 million in charges for debt retirement and $6 million in charges for restructuring.

 

Net sales for the quarter came in at $1.587 billion, from $1.556 a year ago. Sales in the consumer and office products segment were $297 million from $302 million last year.

 

During the quarter, the company completed the sale of its printing and writing papers business for $2.2 billion in cash proceeds and used $1.1 billion of the proceeds to reduce debt.

 

Chairman/CEO John Luke said: "With the sale of the papers business, we gained focus and enhanced our financial flexibility…We are convinced that over the next few years we can develop a more efficient and responsive organisation, improve our internal processes and reduce our overall cost structure."