MWV's Printkote Gets Approval

The Printkote paperboard of MeadWestvaco Corporation ( MWV - Analyst Report ) has received Robinson EN 1230-2 sensory analysis approval for chocolate and confectionary packaging. The approval confirms MeadWestvaco’s ability to manufacture paperboard that maintains product integrity and value.

The Robinson test verifies whether the paperboard has the ability to maintain product quality without a trace of taint or odor from the packaging. The brand owners of chocolates and confectionaries can now use Printkote for packaging that has received a thumbs up in the qualifying test.

Printkote, produced by MeadWestvaco, fulfils the high standards of European chocolate and confectionary market. It is considered safe for direct food contact.

Printkote’s color intensity is supported by a light creamy warm shade and does not use optical brighteners. The dead fold performance of Printkote makes the squarer and tighter package.

Apart from Printkote, Crescendo paperboard made by MeadWestvaco received Robinson certificate for chocolate and confectionery packaging earlier in February. Crescendo is available with one-sided coating (Crescendo C1S) or two-sided coating (Crescendo C2S). The unique fiber-mix material and finishing process of Crescendo ensure high stiffness and durability.

With the divestiture of the Envelope business and spin-off of the Consumer & Office Products, MeadWestvaco is now focusing more on the packaging business. Now, it aims at making innovations to gain market share in the highly competitive packaging industry.

MeadWestvaco’s adjusted earnings in second-quarter 2012 were 46 cents per share, ahead of the Zacks Consensus Estimate of 39 cents. Total revenues improved 3.5% year over year to $1.42 billion, beating the Zacks Consensus Estimate of $1.40 billion.

MeadWestvaco is a global producer providing brands in the healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and agricultural industries. The company also produces specialty chemicals for the automotive, energy, and infrastructure industries and maximizes the value of its land holdings through forestry operations, property development and land sales.

MeadWestvaco retains a short-term Zacks #3 Rank (Hold). We have a long-term Neutral recommendation on the stock.