MeadWestvaco Earnings: Misses the Profit Estimate, Shares Fall
MeadWestvaco Corporation (NYSE:MWV) delivered a profit and missed Wall Street’s expectations, AND met the revenue expectation. Shares are down 5.86%.
MeadWestvaco Corporation Earnings Cheat Sheet
Results: Net income increased to $17 million (10 cents per diluted share) in the quarter versus a net loss of $25 million in the year-earlier quarter.
Revenue: Decreased 11.27% to $1.33 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: MeadWestvaco Corporation reported adjusted net income of 10 cents per share. By that measure, the company missed the mean analyst estimate of $0.18. It met the average revenue estimate of $1.33 billion.
Quoting Management: “We have been consistently improving our financial performance by executing on a set of profitable growth strategies,” said John A. Luke, Jr., Chairman and CEO. “In the fourth quarter, these strategies – especially a focus on commercial excellence, innovation and emerging markets – again led to higher sales. However, our earnings in the quarter were impacted by a sudden drop in economic activity at the end of the year associated with the fiscal cliff in the U.S., and ongoing macroeconomic challenges in other significant geographies, as well as by some unusual one-time items. Nevertheless, our overall performance demonstrates our ability to grow our business and bolster our results during challenging times by focusing on the right strategies to outperform in the packaging and specialty chemicals markets that we’ve targeted for profitable participation…