MWV remains bullish despite losses

The Virginia-headquartered company reported a loss of $91m (£61.8m) in the first quarter of 2009 compared to a $23m loss in the same period in 2008. Sales fell 11% to $1.35bn in the same period year-on-year.

However, the company has doubled cash flow from operations in the first quarter of 2009 and is on track to achieve its 2009 savings goal of $125m.

MWV has realised over $14m in cost savings in the first quarter through reduced overheads and manufacturing optimisation initiatives.

To achieve these savings, MWV has reduced corporate and business overheads, closed and restructured manufacturing facilities and focussed on higher return growth opportunities in targeted packaging markets.

MWV chairman and chief executive John Luke Jr said: "This focussed strategy has helped to stabilize our results as demand declined sharply for many of our products, and will provide better operating leverage to improve earnings when the economy recovers."

MWV has closed six manufacturing locations since introducing the cost saving scheme. The latest closures include two folding carton sites in Louisa, Virginia and Caguas, Puerto Rico.

MWV serves the healthcare, personal and beautycare, food, beverage, media and entertainment and garden industries. It employs 22,000 people across 30 countries.