STAMFORD, Conn. (AP) – MeadWestvaco Corp. on Thursday reported a 38 percent increase in fourth-quarter profits, citing cost cuts, money from a land sale and strong sales of consumer packaging materials.

The company said net income for the October-December period was $50 million, or 25 cents per share, compared with $36 million, or 18 cents per share, for the same period a year ago.

MeadWestvaco owns a paper mill in Rumford, Maine.

The results included a pretax gain of $37 million, or 12 cents per share, from the sale of forestland; a restructuring charge of 5 cents per share; and a gain of 4 cents per share on insurance settlements.

Excluding the one-time gains and losses and a tax benefit of 12 cents, the earnings came in at 2 cents per share, 3 cents below what analysts surveyed by Thomson First Call were expecting.

“In a very difficult environment, we continue to deliver on our strategic commitments,” said John A. Luke Jr., chairman and chief executive officer of the Stamford, Conn.-based company. “This past year, we produced synergy savings beyond our $360 million goal, accelerated forestland sales and held firm on capital expenditures.”

MeadWestvaco’s consumer packaging business continued to perform well, Luke said.

Revenue in the fourth quarter was $1.95 billion, up from $1.89 billion a year ago.

For the year, MeadWestvaco reported a net loss of $6 million, or 3 cents per share, on revenue of $7.55 billion. That compared with a net loss in 2002 of $389 million, or $2.02 per share, on revenue of $7.24 billion.

Last month, MeadWestvaco said it would eliminate about 1,000 jobs, of 3.3 percent of its work force, and close facilities next year as part of a $500 million initiative to improve earnings.

MeadWestvaco shares fell 44 cents to close at $26.46 Thursday on the New York Stock Exchange.

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On the Net:

www.meadwestvaco.com

AP-ES-01-29-04 1851EST