MeadWestvaco Corporation (NYSE:
global leader in packaging and packaging solutions
reported a modest sales increase for the second quarter of 2013, but lower earnings primarily due to the previously announced outage at the company's paperboard mill in Covington, Virginia. The company generated good revenue growth in many targeted packaging markets, especially food, beverage, healthcare and personal care, as well as in specialty chemicals. Results also benefited from the contributions of the Brazilian pine chemicals business, Resitec, and the Indian industrial packaging materials business, Ruby Macons, and from improved pricing for industrial packaging solutions in Brazil. These benefits were partially offset by lower forestland sales and unfavorable foreign currency exchange during the quarter.
"While the isolated operating challenges weighed on our quarterly results, the profitable growth strategies we've been pursuing continues to generate strong gains in targeted packaging and specialty chemicals markets,” said John A. Luke, Jr., chairman and chief executive officer of MWV. “With the operating issues behind us, our businesses are performing well and we are confident the earnings and cash flow improvement we've been anticipating for the second half of the year is already underway."
Sales from continuing operations in the second quarter of 2013 were $1.43 billion compared to $1.42 billion in the second quarter of 2012. Income from continuing operations attributable to the company in the second quarter of 2013 was $67 million, or $0.37 per share. Income from continuing operations attributable to the company in the second quarter of 2012 was $78 million, or $0.44 per share.
Adjusted income from continuing operations attributable to the company excluding special items was $67 million or $0.37 per share for the second quarter of 2013 compared to $82 million or $0.46 per share for the second quarter of 2012. Refer to the “Use of Non-GAAP Measures” section of this release.