MeadWestvaco expands cost-cutting efforts, +4.3% premarket

|By:, SA News Editor

MeadWestvaco (MWV) +4.3% premarket after announcing plans to expand its cost-cutting efforts and simplify the structure of its packaging businesses.

MWV expects the moves to lead to annual cost savings of $100M-$125M by the end of next year, with at savings of a least $75M expected this year.

MWV also raises the amount it expects to return to shareholders to $700M from $665M, mostly from the sale of some timber lands to Plum Creek Timber in a $1.1B deal that closed last month.

Sees Q4 earnings in line with current consensus estimates.