UPDATE 1-MeadWestvaco Q3 earnings misses estimates

miércoles 29 de octubre de 2008 14:27 CET
 

*Q3 EPS from Cont. Ops. misses estimates

*Costs, Storms, Currency hurt profits

Oct 29 (Reuters) - Packaging products maker MeadWestvaco Corp MWV.N reported a 55 percent fall in net income and missed analysts estimates hurt by increased costs, downtime due to the Gulf storms, and the effects of unfavorable foreign currency exchange.

The company also warned that it expects fourth-quarter profit to be down year-over-year.

Net income from continuing operations for the latest third quarter was $46.0 million, or 26 cents a share, compared with $115.0 million, or 63 cents a share, in the year-ago quarter.

However, sales from continuing operations increased 8 percent to $1.81 billion due to growth in bleached board, home and garden and beverage packaging and improved pricing across all businesses.

Analysts, on average, were expecting earnings of 28 cents a share, before special items, on revenue of $1.74 billion, according to Reuters Estimates.

The company expects weakening in demand in its beverage and personal care packaging businesses, and in the Consumer & Office Products segment as a result of lower consumer and business spending for time management products.

MeadWestvaco also expects its earnings to be hurt by the year-over-year strengthening of the U.S. dollar.

Shares of the company, which are down 41 percent so far this month, closed at $13.59 Tuesday on the New York Stock Exchange. (Reporting by Hezron Selvi in Bangalore; Editing by Jarshad Kakkrakandy)