MeadWestvaco Corporation (NYSE: MWV), a global leader in packaging and packaging solutions, reported a 3.5 percent sales increase for the second quarter of 2012, reflecting increased volumes of higher value products in targeted packaging and specialty chemical end markets, as well as increased land sales.
Income from continuing operations of $78 million, or $0.44 per share ($82 million or $0.46 per share ex-items) was up 13 percent versus the prior year. The company’s profit improvement was driven primarily by higher volumes, pricing and product mix improvement, productivity gains, and higher earnings from land sales.
“We continue to successfully execute our profitable growth strategy and navigate through a difficult economic environment,” said John A. Luke, Jr., chairman and chief executive officer of MWV. “In many cases we are outperforming the broader market with our strategy targeting end markets and geographies with our differentiated solutions.”
Luke continued, “Our steady progress can be traced directly to our focus on four strategic pillars – commercial excellence, insights-driven innovation, emerging markets growth, and expanded participation with new technologies. We did well in each of these areas during the second quarter, and continue to believe that it is the right strategy for long-term profitable growth.”“We are financially strong, generating positive cash flow, returning value to shareholders, and investing in our profitable growth initiatives – all while steering through a number of challenging factors in the external environment. Though we expect a continued slowdown in economic activity through the second half of the year, we are confident that success with our profitable growth strategy, coupled with disciplined execution on the controllable elements of our business, will enable us to continue to make steady progress,” Luke concluded. Quarterly Comparison Sales from continuing operations in the second quarter of 2012 were $1.42 billion compared to $1.38 billion in the second quarter of 2011. Income from continuing operations in the second quarter of 2012 was $78 million, or $0.44 per share, and included after-tax restructuring charges of $4 million, or $0.02 per share. Income from continuing operations in the second quarter of 2011 was $69 million, or $0.40 per share, and included after-tax restructuring charges of $5 million, or $0.03 per share. The effect of after-tax restructuring charges on earnings per share from continuing operations is as follows:
|Earnings per share from continuing operations, as reported||$||0.44||$||0.40|
|Earnings per share from continuing operations, as adjusted 1||$||0.46||$||0.43|
1Refer to "Use of Non-GAAP Measures" section of this document.
- 1% sales growth
- 5% profit decline