Packaging and paper producer MeadWestvaco Thursday said it will cut about 1,000 full-time jobs as part of a plan to add $250 million in annual earnings before interest and taxes by the end of 2005.
The Stamford, Connecticut, company said the job cuts -- which will affect 3.3 percent of its current work force -- stem from plant closings and will result in one-time costs of $75 million to $100 million through the end of 2004.
MeadWestvaco also expects a one-time working capital improvement of $250 million by reducing inventories and receivables.
"While we would welcome any improvement in pricing as the market strengthens, our approach must continue to focus on what we can control," said Chairman and Chief Executive John Luke in a statement.
In addition, the companyt expects more than $400 million in annual cost savings by the end of this year as a result of the merger of Mead and Westvaco.
Shares of MeadWestvaco closed Wednesday trade on the New York Stock Exchange at $29.