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MeadWestvaco Management Discusses Q2 2012 Results - Earnings Call Transcript

This volume in market share gains during the quarter were a good reminder that while growth is slower, it is still growth, and we're working hard to capitalize on it. In fact, we're seeing positive momentum well above GDP levels in several of the markets we've targeted, especially in emerging markets. For instance, growth was slower in China during the period but still generally in line with the roughly 7% annualized GDP. There, beauty and personal care, home and garden and beverage categories are growing in at least steadfast while liquid packaging is growing on the order of twice that rate. And in each of these cases, our year-over-year unit volume growth during the second quarter was notably higher than the market levels.

The story was similar in Brazil, where the consumer economy is relatively stronger than the 2% to 3% annualized GDP rate. It is principally driven -- being driven by lower industrial production and commodity prices. Our corrugated packaging business in Brazil significantly outpaced the volume performance in the broader market.

With our market participation strategies, we're demonstrating that MWV can generate profitable growth. We're only 6 months into a 3- to 5-year record to add a $1 billion of profitable new revenue. In this short time, we've already put some points on the board that are reflected in our positive results in the last 2 quarters. For example, we've used our improved commercial excellence capabilities to increase our share of wallets and extend our price for value initiatives with many top customers. A great example is the revenue gains we've earned through brand engagements and packaging design work with AB InBev. As I've noted, we increased our corrugated volume in Brazil faster than the market in part by serving new customers in the region of our fifth box plant in Araçatuba.

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