Full-Year Margin Improvement Achieved Across All Business Segments
Fourth Quarter and Full-Year 2009 Highlights:
- Fourth Quarter EPS of $0.29 (Includes $0.07 Net Benefit from Special Items)
- Full-Year Cash Flow from Operations Exceeds $870 Million; Cash Balance Grows to $850 Million
- Company Achieves $154 Million in Overhead Savings in 2009, Exceeds $125 Million Target
RICHMOND, VA (January 27, 2010)—MeadWestvaco Corporation (NYSE: MWV) generated strong fourth quarter and full-year earnings and cash flow improvement despite challenging market conditions. The company reduced overhead costs, improved operating productivity and focused on growing markets, differentiated products and the most profitable customers. As a result of these strategies, each of the company’s business segments increased profit margins in 2009.
In the fourth quarter, pre-tax earnings from the company’s business segments were $154 million, a 34 percent increase compared to $115 million in the fourth quarter of 2008. Full-year 2009 pre-tax earnings from the company’s business segments were $565 million, a 24 percent increase compared to $454 million in 2008. Full- year cash flow from operations showed strong improvement, exceeding $870 million in 2009 compared to $376 million in 2008.
MWV exceeded its 2009 $125 million overhead savings target associated with the strategic cost management program it announced at the beginning of the year. Savings in 2009 were $154 million, reflecting actions that eliminated overhead costs and closed or restructured certain facilities.
“MWV performed well in what remained a difficult economic environment during 2009,” said John A. Luke, Jr., chairman and chief executive officer. “We improved our earnings and increased shareholder value by focusing on the right strategies to enhance the competitiveness of our global businesses. We reduced costs, refined our participation in the marketplace and enhanced our partnerships with customers around the world. Continued progress in these areas has dramatically improved MWV’s financial performance and strength, and will set the stage for profitable growth in the future.”
“MWV’s strategy agenda for 2010 and beyond is to build on the principles that delivered our strong results in 2009,” continued Luke. “We’re looking to continue to generate profitable growth in emerging geographies and attractive end-markets – as well as further improve our operating efficiency. With continued focus in these areas
and many more, we will build on our recent performance record and generate additional positive momentum in 2010.”