its quarterly earnings

more than doubled

A possible early sign that a fragile economic recovery may be under way came from Richmond yesterday, when MeadWestvaco Corp. reported a slight rise in the amount of bleached paperboard it sold in late summer.

The white-surfaced cardboard is used to package a wide range of products, from breakfast cereal to electronics, and it is one of the first things businesses start buying when they sense orders starting to rise.

MeadWestvaco also reported a boost from the H1N1 swine-flu virus, as sales of pump-bottles for sanitizer and soap soared.

Though many of the worldwide markets for its packaging and chemicals still are suffering from the global slump, the Henrico County-based consumer-packaging giant yesterday reported third- quarter earnings more than doubled from last year's level, to $128 million, or 74 cents a share, from $54 million last year.

The gain came despite a 10 percent drop in revenue and reflects faster-than-expected progress with a $125 million cost-cutting program, announced in January, and falling raw-material prices, particularly for energy. The program includes shutting a plant in Louisa County that employed 171 people and shedding 75 headquarters jobs.

MeadWestvaco also has benefited from a tax credit for using a byproduct from making pulp for paper and cardboard as a fuel substitute. It has received $248 million of federal tax refunds from the credit this year.

"We are making solid gains in each of our businesses," said John A. Luke Jr., chairman and chief executive officer.

Higher prices for paperboard helped the company's biggest unit, where improved sales to tobacco companies, food producers and commercial printers helped.

Bleached paperboard shipments rose 3 percent from second-quarter levels, though they were down 19 percent from last year's record levels.

While H1N1 concerns boosted sales of pump bottles, the effect was more than offset by slower worldwide sales of luxury items, especially fragrances.

H1N1 also boosted demand for packaging for home-cleaning products, while wet weather increased demand for garden-products packaging.

Despite strong back-to-school sales of stationery, businesses are still tight when it comes to spending for paper and envelopes.

Contact David Ress at (804) 649-6051 or dress @timesdispatch.com.

Originally published by RESS; Times-Dispatch Staff Writer.

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