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RICHMOND — MeadWestvaco Corp. said Wednesday its second-quarter profit fell 60 percent from results that included an unusual gain a year ago.
Its latest adjusted earnings still beat Wall Street expectations on a strong performance in its packaging and specialty chemicals segments.
The company said continued economic challenges persist in the U.S. and Europe, including high unemployment rates, stagnant wages and a weak housing market. It said MeadWestvaco remains focused on growth in emerging markets and cutting costs.
The Richmond paper and plastics maker reported net income of $50 million, or 29 cents per share, for the three months ended June 30, down from $125 million, or 72 cents per share, a year earlier.
The year-ago results included income of $112 million from alternative fuel credits that it earned under 2007 legislation and $25 million in restructuring charges.
Excluding restructuring charges of $11 million in the latest quarter, MeadWestvaco earned 35 cents per share. Analysts surveyed by Thomson Reuters expected earnings of 33 cents a share.
Revenue increased 8.4 percent to $1.55 billion from $1.43 billion a year ago. Analysts expected slightly higher revenue of $1.57 billion.
Its shares fell 8 cents to $24.68 in morning trading.
The company's performance shows that "momentum from our strategies is building across our businesses and delivering strong results" in what remains a "difficult environment," CEO John A. Luke Jr. said in a news release.
Profits from its specialty chemical segment more than doubled to $36 million, driven by strong demand for its asphalt solutions in emerging markets and chemicals for oilfield services and adhesive applications. It also benefited from increased automotive production in both North America and Europe, the company said.
Income from its packaging resources segment rose 47 percent to $72 million on strong liquid packaging shipment growth and steady tobacco shipments.
