MeadWestvaco, GP report losses.(2Q LOSSES)

Official Board Markets, July, 2005

MeadWestvaco Corp., Stamford, Conn., has reported a new $200 million cost reduction initiative. As part of its strategy to become the global leader in consumer packaging, the company has begun an initiative to develop a business model that enables it to respond more quickly to the market and to customers' needs.

The company's new business model also will have a lower overall cost structure. The initiative will reduce general and administrative costs and warehousing logistics and is expected to save at least $200 million in costs annually by the end of 2007. MeadWestvaco also reported a loss from continuing operations of $13 million for the second quarter. The company repurchased 21 million shares, or 10 percent, of its outstanding common stock at a cost of...

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