MeadWestvaco CorporationMWV

Morningstar Rating

Stock Research and Analysis

by Daniel Rohr, CFA

Like many paper and packaging firms, MeadWestvaco has dropped yesteryear's ambitions for scope to focus on a more modest array of business lines. However, the wheeling and dealing that management undertook to transform and narrow the company's strategic Read more

Bulls Say

MeadWestvaco has a large portfolio of recognized brand names in packaging and office and school supplies, and boasts market-leading share in several categories.

MeadWestvaco's strong focus on cost-cutting will improve bottom-line results during the next few years.

Compared with several other paper industry firms, MeadWestvaco's pension plan remains in good health. Read more

Bears Say

Prices for raw-material inputs and energy have risen significantly in recent years, outpacing price increases the company has been able to pass along to customers. Margins have suffered accordingly.

Tough competition from low-priced imports will continue to batter unit volume and growth prospects in the consumer and office product business.

Consumer solutions has turned in poor EBIT margins in recent years, as physical media sales have plummeted. A volume turnaround in the DVD and CD packaging market is highly improbable. Read more

Strategy

MeadWestvaco's business strategy differs depending on the competitive environment of each business segment. The strategic focus for pure commodity businesses like paperboard remains cost efficiency and Read more

Management

John Luke Jr. has been CEO since 1992 and chairman since 2002. His experience at Westvaco reaches back to 1979. From 2003 through 2008, management didn't do much in terms of value creation as measured by return on invested capital, which fluctuated Read more

Profile

MeadWestvaco is among the largest packaging manufacturers in the world. Most operations are based in the United States, with 72% of sales attributable to domestic production. Read more

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