The Shadow
RICHMOND – MeadWestvaco Corp. said today it experienced lower volume and production rates in the fourth quarter of 2011, due to lower demand in the United States and Europe.
The company announced certain preliminary financial results for the fourth quarter and year ended Dec. 31, 2011.
The company expects fourth quarter 2011 pre-tax income from its business segments to be in the range of $150 to $160 million, resulting in full-year performance of $835 to $845 million. Cash flow from operations for the full year is expected to be about $550 million.
Weaker than expected demand in certain U.S. and European packaging markets resulted in lower volumes and production rates during the fourth quarter, company officials said.
“Our transformed business model delivered record profits and profitability, as well as strong cash flow, for the full year 2011,” said John A. Luke Jr., chairman and chief executive officer. “In the fourth quarter, however, we saw more aggressive inventory management than we had anticipated by some customers in response to ongoing macroeconomic developments, particularly in Europe. We have great momentum with our profitable growth strategies and these near-term results in no way impact the confidence we have in our ability to deliver on the performance goals we’ve outlined for the next three to five years.”
MWV plans to report final results for the 2011 fourth quarter and full year Jan. 25 before the market opens.
