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
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