1 August 2007 — Richmond (VA): MeadWestvaco has reported its financial results for Q2.
In the consumer and office products segment, Q2 profit was up 41 percent to $24 million, compared to $17 million last year. Sales were up $267 million compared to $260 million in 2006. The company said: "An enhanced product mix from our focus on proprietary brands and products and improved manufacturing productivity more than offset lower volumes and higher costs for raw materials. Our Five Star consumer products line experienced a solid start to the back-to-school season. This segment continues to be impacted by Asian-based imported products."
Q2 total net income was $32 million, or EPS of $0.17, compared to a loss of $7 million, or $0.04 per share, a year earlier. Sales were $1.71 billion, up 9 percent from $1.57 billion last year and profit from the company’s primary business segments increased by 20 percent to $149 million, from $124 million in 2006.
John Luke, chairman and CEO, said: "MeadWestvaco’s strong profit growth in the second quarter is further proof that our packaging strategy is working. We delivered solid results for our shareholders, especially in our mill-based packaging business, where gains in pricing and product mix reflect continued good demand for our packaging solutions. With our strong momentum and ongoing productivity actions, we are well on track to deliver better performance in 2007 and beyond."