(RTTNews) - Packaging solutions provider MeadWestvaco Corp. (MWV: News ) reported Wednesday a profit for the third quarter that soared from last year, boosted by increase in profitability across all its business segments, overhead cost reductions and improved operating productivity, despite a decline in quarterly revenues.

Adjusted earnings per share from continuing operations almost doubled and significantly topped analysts' expectations. However, the company refrained from providing guidance as the continued global economic uncertainty makes the future results difficult to predict.

In a statement, chairman and chief executive officer, John Luke, Jr. said, "We posted strong third quarter results by continuing to advance our transformation strategies to create a stronger, more competitive global packaging company. Even as we navigate through one of the most severe recessions in decades, our financial strength and flexibility have allowed us to continue to invest in the right innovation and growth opportunities for our business."

Third Quarter Results

The Glen Allen, Virginia-based company reported net income of $128 million or $0.74 per share for the third quarter, higher than $54 million or $0.31 per share in the prior-year quarter.

Income from continuing operations for the quarter climbed to $128 million or $0.74 per share from $46 million or $0.26 per share in the year-ago quarter.

The results for the latest quarter include a net benefit of after-tax $42 million or $0.24 per share, consisting of an income of $64 million or $0.37 per share from alternative fuel tax credits, income of $13 million or $0.07 per share from vacation accrual adjustments due to a policy change, a gain of $4 million or $0.02 per share from a pension curtailment, restructuring charges of $28 million or $0.16 per share, and a charge of $11 million or $0.06 per share from early retirement of debt.
Excluding special items, adjusted earnings per share from continuing operations for the quarter surged $0.50 from last year's $26. On average, twelve analysts polled by Thomson Reuters expected the company to report earnings of $0.27 per share. Analysts' estimates typically exclude special items.

Net sales for the quarter declined to $1.63 billion from $1.81 billion in the same quarter last year, and missed seven Wall Street analysts' consensus estimate of $1.57 billion.

Peer Performance

Among MeadWestvaco's peers, Memphis, Tennessee-based International Paper Co. (IP: News ) reported earlier in the day a profit for the third quarter that more than doubled from last year to $371 million or $0.87 per share, reflecting a significant pre-tax credit for alternative fuel mixture. However, adjusted earnings from continuing operations plunged to $157 million or $0.37 per share from $356 million or $0.84 per share in the same quarter last year. Quarterly net sales declined to $5.9 billion from previous year's sales of $6.8 billion.

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