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MeadWestvaco Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: MWV

All the results we share this morning are presented on a continuing operations basis. For the second quarter, the company's income from continuing operations was $78 million or $0.44 per share. Excluding special items, adjusted net income from continuing operations was $82 million or $0.46 per share.

Now here to tell you more about our results for the second quarter are John Luke, Chairman and CEO; Jim Buzzard, our President and Mark Rajkowski, CFO.

I'll now turn the call over to John.

John A. Luke

Jason, thanks, and good morning, everyone. MWV deliver good results in the second quarter given both the increasingly challenging conditions in the global economy and the significant top and bottom line impact from foreign exchange during the period. Overall, we increased revenue by 3.5%, including nearly $50 million of increased volume and better pricing compared to last year, and earnings were up more than 13%. This solid performance includes profitable growth in our targeted packaging markets, another record performance in Specialty Chemicals and good execution on our productivity initiatives across our manufacturing system, as well as a larger-than-normal amount of land sales.

This morning, I'll put this performance in the context of what is happening in the global economy and comment on the momentum we're building towards the profitable growth target we've laid out for the next 3 to 5 years. Jim and Mark will then provide more detail about our second quarter segment and financial results, and then we'll get to your questions following their comments.

First, slower growth around the world, especially in Europe, was a headwind for the business in the second quarter. We not only had lower demand in some markets, including food and personal care, but we also had nearly $55 million of negative impact on the top line from the depreciation of the real in euro compared to this period last year. This development masked some good volume improvement in our targeted markets, including share gains in beverage, health care and home and garden, corrugated packaging in Brazil and Specialty Chemicals.

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