MeadWestvaco reports loss on charges


31 January 2005 – Stamford (CT): MeadWestvaco has reported a quarterly loss on the back of charges from the sale of its paper business, although revenue was still ahead of analyst forecasts.

The company reported a net loss of $497 million compared with a net profit of $72 million in 2003’s Q4.

Sales grew 11 per cent to $2.15 billion, up from $1.95 billion last year.

It suffered charges of $546 million stemming from the pending sale of its paper business and associated assets for $2.3 billion, as well as additional charges relating to restructuring and forestland sales.

Chairman John Luke said: "Clearly the pending sale of our papers business, which we expect to close in the second quarter, will be a transformational event for MeadWestvaco."