Sale-related costs blamed in Mead loss

loading...
STAMFORD, Conn. – MeadWestvaco Corp. reported a loss in the latest quarter, despite higher sales, due to charges for the pending sale of its papers business. The maker of packaging also said it would restate financial statements for 2003 and 2002 to correct deferred tax…
Sign in or Subscribe to view this content.

STAMFORD, Conn. – MeadWestvaco Corp. reported a loss in the latest quarter, despite higher sales, due to charges for the pending sale of its papers business.

The maker of packaging also said it would restate financial statements for 2003 and 2002 to correct deferred tax liabilities.

The Stamford-based company Monday said it lost $497 million, or $2.45 a share, on revenue of $2.15 billion in the fourth quarter. The latest quarter included charges of $2.80 a share and a gain of 9 cents a share.

Excluding items, the company earned 25 cents per share in the latest quarter. Analysts were expecting earnings of 22 cents a share, according to Thomson First Call. In the previous year, it earned $72 million, or 36 cents a share, on revenue of $1.95 billion.

Earlier in January, MeadWestvaco said it agreed to sell its paper business, including its mill in Rumford, for $2.3 billion to cut debt and focus on expanding its packaging business. The buyer is Cerberus Capital Management LP, a private, New York-based investment firm.

MeadWestvaco expects its markets to remain firm in the first quarter of 2005. The company expects to incur additional costs as the sale of the papers group is completed.


Have feedback? Want to know more? Send us ideas for follow-up stories.

comments for this post are closed

By continuing to use this site, you give your consent to our use of cookies for analytics, personalization and ads. Learn more.