The US-based firm reported earnings of $51m, or 28 cents per share for the three months that ended 30 September. This is down from $117m, or 67 cents per share, a year ago.
Adjusted for restructuring charges and income from discontinued operations, MeadWestvaco (MWV) earned $67m or 39 cents per share.
Revenue fell about 1% to $1.4 billion as gains in specialty chemicals could not offset declines in packaging for industrial, home, health and beauty products. It also saw declines in land sales. Analysts expected revenue of $1.41bn.
BRICs
MeadWestvaco said it saw solid volume growth, led particularly by gains in corrugated packaging in Brazil, retail food and beverage packaging in North America and health care packaging, as well as increased sales for its specialty chemicals for asphalt, adhesives, inks and oilfield drilling.
The company said it is "continuing to navigate well through the uneven demand environment," and is prepared to respond to "negative near-term demand impacts" that could arise following the presidential election, "the so-called 'fiscal-cliff' event, as well as from global macroeconomic challenges."
The "fiscal cliff" refers to higher tax rates and government spending cuts scheduled to kick in at the beginning of the year, unless Congress works out a compromise before then.
MeadWestvaco said sales and profits from specialty chemicals grew 13% and nearly 11% respectively during the quarter. Sales in its home health and beauty packaging segment fell nearly 2%, but profit for the segment rose 20%.
Sales in its food and beverage packaging segment were relatively flat but its profit fell 1% on higher costs and unfavourable foreign currency exchange.
Higher labour costs
The company said sales fell 34% and profit 42% for its community development and land management segment. Its sales of industrial packaging fell 16% and its profit fell 72% on higher labour costs and expenses related to the start-up of a new paperboard machine.
In May, the company completed the spin-off and merger of its business that made Mead, Five Star and At-A-Glance branded office and school supplies with ACCO Brands Corp. ACCO, based in Lincolnshire, Ill., makes Swingline staplers and Day-Timer planners.
MeadWestvaco operates in 30 countries and has customers in more than 100 nations.
MWV is a global packaging company providing products to the well-known brands in the healthcare, beauty and personal care, food, beverage, home and garden, tobacco and agricultural industries.
Earlier this month, MWV said that it was buying corrugated packaging materials company Ruby Macons in order to strengthen its presence in India. Ruby Macons, which was founded in 1986, produces more than 150,000 tons of corrugated packaging materials annually.
The company's offices and manufacturing plants in Vapi, Gujarat, in India will stay in operation and its employees will join MeadWestvaco.
