1159297--2/24/2009--MEADWESTVACO

related topics

{condition, economic, financial}

{cost, operation, labor}

{competitive, industry, competition}

{cost, regulation, environmental}

{operation, international, foreign}

{gas, price, oil}

Recent changes in U.S. and global economic conditions could have a continuing adverse effect on the profitability of some or all of our businesses. Conditions in the global capital and credit markets and the economy generally may materially adversely affect our business, results of operations and financial position and we do not expect these conditions to improve in the near future. The company has announced a strategic cost management plan. If we fail to fully execute on this initiative, we may not fully realize all the improvements we have publicly announced. Certain of the company s businesses are affected by cyclical market conditions which can significantly impact operating results and cash flows. The company s businesses are subject to significant cost pressures. Pricing volatility and our ability to pass higher costs on to our customers through price increases or other adjustments is uncertain and dependent on market conditions. Certain of the company s consumer packaging converting businesses are affected by consumer behavior and new technology which can significantly impact operating results and cash flows. The company faces intense competition in each of its businesses, and competitive challenges from lower cost manufacturers in overseas markets. If we cannot successfully compete in an increasingly global market place, our operating results may be adversely affected. The company s operations are increasingly global in nature, particularly in our consumer packaging businesses. Our business, financial condition and results of operations could be adversely affected by the political and economic conditions of the countries in which we conduct business, by fluctuations in currency exchange rates and other factors related to our international operations. The company continues to realign and restructure its packaging converting businesses. Although the company believes that it will implement and manage the reorganization effectively to achieve substantial savings for the company, these major changes have attendant inherent risks, including the potential for disruption in our packaging businesses and operations as we implement the realignment. The company is subject to extensive regulation under various environmental laws and regulations, and is involved in various legal proceedings related to the environment. Environmental regulation and legal proceedings have the potential for involving significant costs and liability for the company. Our business could be adversely affected by strikes or work stoppages and other labor issues. The real estate industry is highly competitive and economically cyclical.

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1159297--2/24/2009--MEADWESTVACO_Corp