RICHMOND, Va. (AP) -- Packaging company MeadWestvaco Corp. cautioned that softer-than-expected demand in some of its U.S. and European packaging markets during the fourth quarter led to lower volumes and production rates.
Its stock fell 57 cents to $31.17 in Wednesday morning trading.
Chairman and CEO John A. Luke, Jr. said in a statement that the company saw more aggressive inventory management than expected by some of its customers — particularly in Europe— in response to the uncertain economy in the region.
MeadWestvaco expects fourth-quarter pre-tax income from its segments, prior to corporate and other, in a range of $150 million to $160 million.
In addition office supply company ACCO Brands Corp. said Wednesday that it voluntarily withdrew and will refile its Hart-Scott-Rodino Act notification related to the proposed $860 million merger with MeadWestvaco's consumer and office products business. ACCO plans to refile on Thursday, which will give the Justice Department's antitrust division 30 more days for review.
Acco shares rose 10 cents to $9.49 in morning trading.
MeadWestvaco makes Mead, Five Star and At-A-Glance branded office and school supplies. Acco, based in Lincolnshire, Ill., makes Swingline staplers and Day-Timer planners.
The proposed deal was announced in November. Once it closes, MeadWestvaco stockholders will own 50.5 percent of the combined company.
The deal is expected to be completed in the second quarter.
MeadWestvaco, based in Richmond, Va., will report fourth-quarter and full-year financial results on Jan. 25.
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