MWV, Sealed Air and O-I report profits for 2009

However, Owens-Illinois ended the year with a profit before tax of $325m, down 42% from 2008.

Stagnating sales were a problem for all three companies in the fourth quarter.

MeadWestvaco increased sales marginally by 2% to $1.6bn during the period and reported a $114m profit for the quarter ending 31 December, up considerably from the $22m loss in the same quarter in 2008.

The company exceeded its $125m overhead savings target at the start of 2009 and achieved overall savings of $154m by the end of the year.

“MWV performed well in what remained a difficult economic environment during 2009,” said MWV chairman and chief executive officer John Luke Jr. “We improved our earnings and increased shareholder value by focusing on the right strategies to enhance the competitiveness of our global business.”

MWV outlined its plans to grow its position in developing regions, such as China, Brazil and India to offset the persistent challenges in developed markets such as the US and Western Europe.

Meanwhile, New Jersey-headquartered Sealed Air, which recently celebrated the 50th anniversary of Bubble Wrap, saw sales drop in the fourth quarter by 2% to $1.15bn. Profits for the period rose by 9% to $124m.

“Lower input costs combined with aggressive cost-saving programmes and price/mix management yielded strong margin growth,” said Sealed Air president and chief executive officer William Hickey.

“We maintained a balanced approach during the year by continuing to invest in innovation, launching more than 25 new, distinct solutions, adding customers and returning cash to shareholders through $76m of dividend payments.”

Owens-Illinois reported a 9% increase in sales to $1.9bn for the fourth quarter, reflected in its less than 1% drop in loss before tax of $169m for the period. The company ended the year with a profit before tax of $325m, down 42% from 2008.

“While profits were down modestly from the previous year, glass shipments have gradually recovered and our year-over-year volume comparisons have improved each quarter throughout the year,” said O-I chairman and chief executive Al Stroucken.

“Our strong cashflow in 2009 allowed us to invest in capital projects, reduce debt and accelerate pension contributions in the fourth quarter, all of which should improve our operating and financial flexibility going forward.”

MeadWestvaco – Q4 $ (2008)
Net sales: 1.6bn (1.5bn)
Income/loss before tax: 114m (22m loss)
Net income/loss: 51m (16m loss)

Sealed Air – Q4 $ (2008)
Net sales: 1.15bn (1.17bn)
Income/loss before tax: 87.1m (53m)
Operating profit: 124m (114m)

O-I – Q4 $ (2008)
Net sales: 1.87bn (1.7bn)
Income/loss before tax: 169m loss (156m loss)
Gross profit: 331m (287m)

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