May 04, 2007. /Lesprom Network/. MeadWestvaco Corporation reported on May 2, 2007 a net loss in the first quarter of $16 million, or $0.09 per share. Included in the first quarter results were after-tax restructuring charges of $10 million, or $0.05 per share, primarily related to employee separation costs and facility closures. In connection with the company’s cost initiative, the company also incurred after-tax one-time costs of $3 million, or $0.02 per share. Sales in the first quarter were $1.6 billion, an increase of 8% compared to sales of $1.4 billion in the first quarter of 2006. First quarter 2007 total operating profit from the company’s primary business segments increased 20% to $77 million, compared to $64 million in the prior year. In 2007, higher selling prices and improved productivity as well as the results from Calmar, the company’s plastic dispensing and sprayer technology business, more than offset lower volume and higher costs for energy, freight and raw materials. In the first quarter of 2006, MeadWestvaco had net income of $3 million, or $0.02 per share. These results included after-tax restructuring charges of $2 million, or $0.01 per share; after-tax one-time costs of $1 million, or $0.01 per share; and after-tax gains on forestland sales of $2 million, or $0.01 per share. “Our strategies to generate profitable growth in our core packaging businesses are working,” said John A. Luke, Jr., chairman and chief executive officer. “Pricing actions, an enhanced product mix and better overall productivity in the packaging businesses improved our operating performance compared to last year. “We are responding to good demand in many of our key markets with an aggressive focus on execution and implementation of our strategies for profitable growth – including innovative product development and emerging markets expansion. With these efforts and continued price increases to offset cost inflation, we expect to generate meaningful improvements in all key performance metrics in 2007.” Outlook For the second quarter, MeadWestvaco expects solid year-over-year improvement in its packaging resources segment. Market demand is expected to remain steady during the second quarter of 2007 with shipments benefiting from the seasonally stronger selling period and from improved mill operating performance. The company also plans to continue to implement price increases to offset input costs, which remain at historically high levels. MeadWestvaco’s consumer solutions segment is expected to show significant year-over-year operating profit improvement due to previously-announced cost and productivity actions and from the addition of Calmar. Partially offsetting these improvements are expected lower volumes in media packaging due to continued declines in sales of CD music. While results should improve from the seasonally weak first quarter for MeadWestvaco’s consumer & office products segment, operating profits are expected to continue to shift into the second half of the year as major customers place an emphasis on optimizing the overall supply chain. In the company’s specialty chemicals segment, increased demand for pine chemicals and improved pricing are expected to be more than offset by continued high raw materials costs, principally crude tall oil, and by continued weakness in the automotive carbon business. MeadWestvaco provides packaging solutions and products to many of the world’s best-known companies and most-admired brands. With a presence in more than 30 countries, our research, design, manufacturing and distribution capabilities serve leaders in the food and beverage, media and entertainment, personal care, home and garden, cosmetics and healthcare industries. We also have market-leading positions in our consumer & office products and specialty chemicals businesses. In our values and in our operations, we act on the principle of sustainability – creating value for shareholders while fulfilling our environmental, social and economic responsibilities. MeadWestvaco manages all of its forestlands in accordance with internationally recognized forest certification standards, and we have been selected for the Dow Jones Sustainability Indexes for the third consecutive year.