UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the third quarter ended July 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to __________________
Commission File Number 1-3013
WESTVACO CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Delaware 13-1466285
(State of Incorporation) (I.R.S. Employer Identification No.)
299 Park Avenue, New York, New York 10171
(Address of principal executive offices)
Telephone Number 212-688-5000
(Registrant's telephone number)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months, and (2) has been subject to such
filing requirements for the past 90 days. YES X NO
At July 31, 1999, the latest practicable date, there were 100,304,411 shares
outstanding of Common Stock, $5 par value.
WESTVACO CORPORATION
and Consolidated Subsidiary Companies
INDEX TO FORM 10-Q
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Statement of Income for the three months
and nine months ended July 31, 1999 and 1998
Consolidated Balance Sheet as of July 31, 1999
and October 31, 1998
Consolidated Statement of Cash Flows for the
nine months ended July 31, 1999 and 1998
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
WESTVACO CORPORATION
and Consolidated Subsidiary Companies
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CONSOLIDATED STATEMENT OF INCOME
[Unaudited]
In thousands, except per share data
Three Months Ended Nine Months Ended
July 31 July 31
1999 1998 1999 1998
Sales $700,202 $727,826 $2,030,398 $2,154,126
Other income (expense) 5,819 3,416 19,135 12,198
706,021 731,242 2,049,533 2,166,324
Cost of products sold (excludes
depreciation shown below) 493,177 528,512 1,443,373 1,547,656
Selling, research and
administrative expenses 56,990 57,317 168,228 174,842
Depreciation and amortization 69,831 70,772 207,948 209,950
Interest expense 31,037 25,867 92,481 80,880
651,035 682,468 1,912,030 2,013,328
Income before taxes 54,986 48,774 137,503 152,996
Income taxes 20,000 17,100 50,000 54,200
Net income $ 34,986 $ 31,674 $ 87,503 $ 98,796
Net income per share:
Basic $.35 $.31 $.87 $.97
Diluted .35 .31 .87 .97
Shares used to compute net
income per share:
Basic 100,252 101,297 100,215 101,474
Diluted 100,759 101,699 100,464 102,088
Cash dividends per share
of common stock $.22 $.22 $.66 $.66
The accompanying notes are an integral part of these financial statements.
CONSOLIDATED BALANCE SHEET
In thousands
July 31 October 31
1999 1998
[Unaudited]
ASSETS
Cash and marketable securities $ 114,117 $ 105,050
Receivables 286,654 286,423
Inventories 265,785 285,783
Prepaid expenses 63,795 61,936
Current assets 730,351 739,192
Plant and timberlands:
Machinery 5,139,590 5,079,177
Buildings 683,199 655,020
Other property, including plant land 223,626 224,229
6,046,415 5,958,426
Less: accumulated depreciation 2,731,660 2,634,702
3,314,755 3,323,724
Timberlands - net 257,645 273,975
Construction in progress 120,585 204,732
3,692,985 3,802,431
Other assets 551,113 467,045
$4,974,449 $5,008,668
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $ 332,368 $ 346,552
Notes payable and current maturities of
long-term obligations 120,611 99,072
Income taxes 16,494 21,501
Current liabilities 469,473 467,125
Long-term obligations 1,511,656 1,526,343
Deferred income taxes 810,403 768,752
Shareholders' equity:
Common stock, $5 par, at stated value
shares authorized: 300,000,000
shares issued: 103,170,667
(1998 - 103,170,667) 765,694 764,574
Retained income 1,605,980 1,588,932
Accumulated other
comprehensive income (loss) (117,016) (32,167)
Common stock in treasury, at cost
shares held: 2,866,256
(1998 - 2,844,300) (71,741) (74,891)
2,182,917 2,246,448
$4,974,449 $5,008,668
The accompanying notes are an integral part of these financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
[Unaudited]
In thousands
Nine Months Ended
July 31
1999 1998
Cash flows from operating activities:
Net income $ 87,503 $ 98,796
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for depreciation and amortization 207,948 209,950
Provision for deferred income taxes 44,766 41,935
(Gains) losses on sales of plant
and timberlands (9,192) 399
Pension credits and other employee benefits (59,243) (38,155)
Foreign currency transaction loss (gain) 3,414 2,456
Changes in assets and liabilities:
(Increase) decrease in receivables (7,677) 22,239
(Increase) decrease in inventories 10,811 (14,953)
(Increase) decrease in prepaid expenses (3,440) (3,480)
(Decrease) increase in accounts payable
and accrued expenses (7,017) (27,537)
(Decrease) increase in income
taxes payable (3,489) (750)
Other, net 3,201 (10)
Net cash provided by operating activities 267,585 290,890
Cash flows from investing activities:
Additions to plant and timberlands (176,977) (340,770)
Proceeds from sales
of plant and timberlands 15,514 4,025
Other investments (22,659) -
Other, net (460) (157)
Net cash used in investing activities (184,582) (336,902)
Cash flows from financing activities:
Proceeds from issuance of common stock 9,039 3,767
Proceeds from issuance of debt 744,405 331,581
Treasury stock purchases (10,223) (27,950)
Dividends paid (66,121) (67,042)
Repayment of notes payable
and long-term obligations (734,456) (254,081)
Net cash (used in) provided by
financing activities (57,356) (13,725)
Effect of exchange rate changes on cash (16,580) (2,907)
Increase (decrease) in cash and
marketable securities 9,067 (62,644)
Cash and marketable securities:
At beginning of period 105,050 175,354
At end of period $ 114,117 $ 112,710
The accompanying notes are an integral part of these financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
[Unaudited]
1. Statement of Information Furnished
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Form 10-Q instructions and in the opinion of
management contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position and the results
of operations for the interim periods presented. These results have been
determined on the basis of generally accepted accounting principles and
practices applied consistently with those used in the preparation of the
company's 1998 Annual Report on Form 10-K.
Certain information and footnote disclosures normally included in financial
statements presented in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that the
accompanying consolidated financial statements be read in conjunction with
the financial statements and notes thereto incorporated by reference in the
company's 1998 Annual Report on Form 10-K.
2. Current Assets
Marketable securities of $40,690,000 ($12,032,000 at October 31, 1998) are
valued at cost, which approximates market.
Inventories included in the consolidated balance sheet consist of the
following:
In thousands July 31 October 31
1999 1998
Raw materials $41,981 $ 55,580
Production materials, stores
and supplies 67,290 74,338
Finished and in process goods 156,514 155,865
Total $265,785 $285,783
3. Foreign Operations
Results of unbleached operations for Rigesa, Ltda., our Brazilian operating
subsidiary, were as follows:
Three Months Nine Months
In thousands Ended July 31 Ended July 31
1999 1998 1999 1998
Sales $34,264 $47,724 $104,067 $138,937
Net income $ 6,515 $ 6,427 $ 15,288 $ 20,018
Rigesa's results for the third quarter of 1999 were negatively affected by
decreases in price and product mix of 30.2%, due to the effect of the
devaluation of the Brazilian real partially offset by increases in the
volume of shipments of 2.0%. In the local currency, sales for the third
quarter increased 8.9% compared to the third quarter of 1998. Year-to-date
results were negatively affected by a decrease in price and product mix of
32.9%, including the devaluation of the Brazilian real, which was partially
offset by an increase in volume of 7.8%.
4. Net Income Per Common Share
Basic earnings per share for all the periods presented have been calculated
using the weighted average shares outstanding. In computing diluted earnings
per share incremental shares issuable upon the assumed exercise of stock
options have been added to the weighted average shares outstanding.
5. Comprehensive Income
Effective November 1, 1998, the company adopted Statement of Financial
Accounting Standards (SFAS) No.130, Reporting Comprehensive Income. This
statement requires the disclosure of other comprehensive income to reflect
changes in equity that result from transactions and economic events from
nonowner sources. Other comprehensive income includes foreign cumulative
translation adjustments associated with the company's Brazilian and Czech
Republic operations. There was no tax expense or tax benefit associated
with the foreign currency translation items. Comprehensive income for the
third quarter and nine months ended July 31, 1999 was $22.1 million and $2.7
million compared to $27.9 million and $69.3 million, respectively, for the
1998 periods.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
[Unaudited]
Business Segment Information
Three Months Ended Nine Months Ended
July 31 July 31
1999 1998 1999 1998
In millions
Sales
Bleached $477.2 $492.5 $1,387.7 $1,464.6
Unbleached 143.1 149.9 415.4 448.1
Chemicals 80.8 84.9 230.6 246.0
Corporate and other items (0.9) .5 (3.3) (4.6)
Consolidated sales $700.2 $727.8 $2,030.4 $2,154.1
Operating profit
Bleached $ 60.2 $ 59.3 $ 167.7 $ 186.4
Unbleached 29.2 26.9 75.1 74.1
Chemicals 16.5 20.3 53.7 51.0
Corporate and other items (50.9) (57.7) (159.0) (158.5)
Consolidated income
before taxes $ 55.0 $ 48.8 $ 137.5 $ 153.0
Results of Operations
Sales of $700.2 million for the 1999 third quarter were down 3.8% from the
1998 third quarter, the result of a 4.2% decrease in price and product mix
offset by a .4% improvement in the volume of shipments. Earnings in the
third quarter of 1999 were $35.0 million, or 35 cents per share (basic and
diluted), a 10.5 percent increase from 1998 third quarter earnings of $31.7
million, or 31 cents per share (basic and diluted). Earnings for the 1999
third quarter include a gain of $2 million, or 2 cents per share, from the
sale of nonstrategic timberlands. Sales for the nine months of 1999 were
$2.0 billion, a 5.7 percent decline compared to the year earlier period, and
reflect a 5.2 percent decline in price and mix and a 0.5 percent decline in
volume. Sales for the third quarter and nine months were affected by weak
pricing caused by global overcapacity combined with a strong U.S. dollar.
During the third quarter pressures from lower-priced imported coated printing
papers began to ease as demand increased for papers used in catalogue and
direct mail applications. Late in the third quarter the company announced
the first price increase this year for coated paper products, as well as
increases on additional grades, including linerboard. Earnings for the nine
months of 1999 totaled $87.5 million, or 87 cents per share (basic and
diluted), an 11.4 percent decrease from $98.8 million, or 97 cents per share
(basic and diluted), earned during the first nine months of 1998. Earnings
for the nine months of 1999 include a gain of $6 million, or 6 cents per
share, from the sale of nonstrategic timberlands. Export sales from the
United States increased approximately 7% and 4% compared to the third quarter
of 1998 and the 1999 second quarter, and accounted for 19% of the company's
third quarter sales, clear evidence of the continuation of a gradual economic
recovery in Asia. Total sales outside of the United States, including sales
of our foreign operating subsidiaries, accounted for approximately 25% of
third quarter consolidated sales, the same percentage as the year earlier
period.
Gross profit margin for the third quarter and nine months of 1999 was 20% and
19%, respectively, compared with 18% and 19% for the prior year periods. The
6.7% decrease in cost of products sold for both the third quarter and
nine-months ended July 31 was mainly attributable to cost improvement
initiatives. For the third quarter and the nine months ended July 31, 1999
operating results also benefited from an increase in non-cash pension
credits of $7.3 million and $20.0 million, respectively, reflecting
cumulative favorable investment returns on pension plan assets.
Bleached
Bleached segment sales for the third quarter decreased 3.1% from the
comparable 1998 period; an increase in unit volume of 1.3% was more than
offset by a decrease in price and product mix of 4.4%. Bleached segment
operating profit of $60.2 million increased from the third quarter 1998
level of $59.3 million. Markets for the company's paper and paperboard
products continue to be very competitive, with net sales realizations
substantially below 1998 levels. However, domestic demand and pricing for
commodity grades improved towards the end of the third quarter and
contributed to higher order backlogs. Also, improving Asian economies
benefited our bleached board business in the third quarter. Year to date,
approximately 22% of bleached segment sales were made to the tobacco
industry for packaging tobacco products; the majority of this paper and
board was exported or used to produce products for export. Approximately
15% (1998 - 15%) of the segment sales were exported or used to produce
products for export with the remaining 7% (1998 - 9%) made for the domestic
tobacco industry for sale in the United States. The current legal,
regulatory and legislative pressures on the tobacco industry may have an
adverse effect on bleached segment profitability. While we would expect to
compensate for such an adverse effect by continuing growth in other consumer
product markets, these alternatives may not, in the short run, fully offset
any decline in profitability related to sales to the tobacco industry.
Unbleached
Sales for the unbleached segment decreased 4.5% compared to the 1998 third
quarter; an increase in unit volume of 5.3% was more than offset by a
decrease in price and product mix of 9.8%. Operating profit for the
unbleached segment increased to $29.2 million from the 1998 third quarter
profit of $26.9 million. Rigesa's unbleached operation accounted for
approximately 18% of segment operating profit in the third quarter of 1999,
compared to approximately 19% for the 1998 comparable period. Higher demand
for corrugated packaging in July led to the highest shipment volume for
Rigesa in more than 18 months.
Chemicals
Sales for the chemicals segment decreased 4.9% from the 1998 third quarter.
This change reflects an increase in price and product mix of 9.0% and a
decrease in volume of 13.9%. Operating profit for the chemicals segment was
$16.5 million for the 1999 third quarter compared to $20.3 million for the
1998 period; the decrease is mainly due to the change in the inventory mix.
Liquidity and Capital Resources
At July 31, 1999, the ratio of current assets to current liabilities
remained unchanged at 1.6 compared to October 31, 1998. Cash flows from
operations totaled $267.6 million for the nine months ended July 31, 1999,
compared to $290.9 million for the comparable 1998 period. Inventories
decreased from October 1998 levels, reflecting planned inventory levels.
New investment in plant and timberlands totaled $182.3 million for the first
nine months of 1999, compared to $336.9 million for the same period of 1998.
Cash payments for these investments totaled $177.0 million compared to
$340.8 million in 1998. This lower level of capital spending follows the
completion of several important initiatives that added significant support
to our long-term strategy. At July 31, 1999, the amounts committed to
complete all authorized capital projects totaled approximately $149 million.
Current estimates indicate that 1999 capital spending will total
approximately $240 million, down from an original estimate of $275 million.
During the current year the company completed the purchase of a $22.7
million equity interest in a new consumer packaging plant in Guangzhou,
China. The company may from time to time use outside sources as needed to
finance future capital investments, as it has in the past. The company had
$90 million in commercial paper outstanding at July 31, 1999. The company
maintains a $500 million revolving credit agreement, and there was no
borrowing under this arrangement during the current period. The ratio of
debt to total capital employed was 34% at July 31, 1999 and October 31,
1998.
Accounting changes: In 1999, the company is required to adopt a new
accounting standard issued by the Financial Accounting Standards Board
(FASB), Statement of Financial Accounting Standards (SFAS) 131, Disclosures
about Segments of an Enterprise and Related Information. Also, the company
is required to adopt SFAS 133, Accounting for Derivative Instruments and
Hedging Activities, in fiscal year 2001. The company does not believe that
the adoption of these statements will have a material effect on the
company's financial position or results of operations.
Year 2000
Westvaco's remediation, testing and contingency planning with respect to
identifying and eliminating Year 2000 problems was substantially completed
by June 30, 1999 for business systems and process control components.
Having accomplished the inventorying, assessment of business criticality and
technical assessment of potential Year 2000 failures earlier, Westvaco
believes that as a whole its base program, which focussed on high-risk
areas, is now substantially complete. The program encompassed both
information and noninformation technology systems. Focused on both our
domestic and foreign operations, the program included a review of all
computer hardware and software, whether used directly to support business
and manufacturing processes or embedded in components of machinery and other
equipment.
Westvaco also has an advanced Year 2000 program designed to enhance the
current level of readiness. With a goal of identifying and tracking any
remaining tasks needing to be accomplished between now and December 31, the
advanced program is designed to (1) review and properly archive all records
associated with Year 2000 efforts to date; (2) refine Westvaco's contingency
plans, working with experts in the power and process manufacturing
industries and reviewing procedures to be followed prior to and following an
event involving a computer-related system failure in Westvaco or in a
primary utility serving Westvaco; (3) establish a communications center at
Westvaco's Laurel, MD data center to collect and disseminate all Year
2000-related information during key transition periods; and (4) create an
open items list and resolve these items through a six-phase program. The
open items list will contain any a) newly-reclassified high-risk items, as
well as any medium and low-risk items where remediation has been planned but
not yet completed; b) components overlooked during the base program; c) new
components purchased subsequent to June 30, 1999 and thus requiring the
analysis of the six phases of the base Year 2000 program already given to
other components; d) items from our store room inventories that might not
have been included in the base program; and e) key vendors from whom
Westvaco has not yet received confirmation of readiness.
The contingency plans noted above may, as appropriate, include the
identification of alternate suppliers, vendors and service providers;
accumulation of inventory; identification of manual alternatives;
arrangement for rapid access to qualified vendor technical support;
enhancement of operational communications; and configuration of our
manufacturing sites at an appropriate state if subject to the possibility of
external power or communication failures.
Westvaco has contacted key vendors whose noncompliance, either individually
or cumulatively, could materially impact the company's business. As of July
31, 1999, 82% of vendors contacted have responded, substantially all
indicating they have addressed or expect to address their Year 2000 issues
in a timely manner. The company continues to follow up with vendors yet to
respond satisfactorily or at all to its inquiries.
Westvaco cannot provide assurance that the Year 2000 compliance plans of its
vendors and customers, particularly those providing broad infrastructural
services or those in international markets, will be successfully completed
in a timely manner.
The Year 2000 disclosures of customers having similar significance to the
company's business are reviewed on an ongoing basis. Audits of Westvaco's
Year 2000 program that have been requested by customers have satisfied those
requesting customers.
Westvaco, moreover, has on an on-going basis kept its interested customers
advised of developments in the Year 2000 area, last writing them in July of
1999.
Program costs for the Westvaco Year 2000 program are still estimated to be
between $9 and $12 million. This estimate includes internal costs (e.g.,
related payroll and required downtime) and external costs (e.g., hiring
consultants to assist in compliance efforts). Program costs do not include
the cost of major new business system implementations scheduled prior to the
company's specific Year 2000 compliance efforts described herein and
completed during the last three years. Estimated costs would have been
substantially greater but for the fact that recent modernization of many
of the company's business systems involved the replacement of software
with new software that is Year 2000 compliant at a cost of approximately
$30 million. No significant technology projects have been deferred as
a result of the company's Year 2000 program.
As of July 31, 1999, approximately $6.3 million in program costs incurred to
date have been funded by operating cash flows and expensed as incurred
except for newly installed systems which were capitalized in accordance with
the company's accounting policies. Although such costs may be significant
to the company's results of operations in one or more fiscal quarters,
Westvaco does not expect a material adverse impact on its long-term results
of operations, liquidity or financial position. Cost estimates may be
refined as technical assessment, remediation, testing and contingency
planning continue and as compliance status information becomes available
from third-party business partners.
If Westvaco were not taking any of the remedial steps detailed above, Year
2000 issues could possibly cause significant technological problems for the
company, disrupting business and resulting in a decline in earnings. At
this time, however, management does not believe this will happen.
The most reasonably likely worst case scenario should Westvaco, its
customers or vendors be unable to adequately resolve Year 2000 issues would
include a temporary slowdown or abrupt stoppage of operations at one or more
of the company's facilities due to the failure of one or more critical
process control elements or business systems. Such failures could result in
interruptions in manufacturing, safety and/or environmental systems; and/or
a temporary inability to receive raw materials, ship finished products and
process orders and invoices. Although management does not believe that this
will happen, if such or similar scenarios were to occur, they could,
depending on their duration, have a material impact on the company's results
of operations and financial position. Such theoretical consequences are of
a kind and magnitude generally shared with other manufacturing companies.
Assuming the successful completion of its Year 2000 program in a timely
manner, the company expects any Year 2000 disruptions which occur, should
there be any, will be minor and not material to its business.
Estimates and conclusions herein contain forward-looking statements and are
based on management's best estimates of future events.
Environmental Matters
In 1995, the company authorized removal of elemental chlorine from all of
its pulp bleaching processes. This important initiative, completed during
1997 at a cost of approximately $110 million, represents a major step by
Westvaco in addressing subsequent EPA regulations for the U.S. pulp and
paper industry regarding air and water quality. These regulations, known as
the Cluster Rule, were published in the Federal Register in April 1998. The
company anticipates additional capital costs to comply with other parts of
these new regulations over the next several years to be in the range of $100
million to $150 million which will also increase operating costs in the
range of $3 million to $7 million annually. Environmental organizations are
challenging the EPA regarding certain aspects of the Cluster Rule in the
U.S. Court of Appeals. Westvaco and other companies are participating in
that litigation. If the legal challenge by environmental organizations to
the regulations is successful, the company could face additional compliance
costs of up to $150 million over the next several years.
The company is currently named as a potentially responsible party with
respect to the cleanup of a number of hazardous waste sites under the
Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA) and similar state laws. While joint and several liability is
authorized under CERCLA, as a practical matter, remediation costs will be
allocated among the waste generators and others involved. The company has
accrued approximately $5 million for estimated potential cleanup costs based
upon its close monitoring of ongoing activities and its past experience with
these matters. In addition, the company is involved in the remediation of
certain other than CERCLA sites and has accrued approximately $10 million
for remediation of these sites.
Forward-looking Statements
Certain statements in this document and elsewhere by management of the
company that are neither reported financial results nor other historical
information are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such information includes,
without limitation, the business outlook, assessment of market conditions,
anticipated financial and operating results, strategies, future plans,
contingencies and contemplated transactions of the company. Such
forward-looking statements are not guarantees of future performance and are
subject to known and unknown risks, uncertainties and other factors which
may cause or contribute to actual results of company operations, or the
performance or achievements of the company, or industry results, to differ
materially from those expressed in or implied by the forward-looking
statements. In addition to any such risks, uncertainties and other factors
discussed elsewhere herein, risks, uncertainties and other factors that
could cause or contribute to actual results differing materially from those
expressed in or implied by the forward-looking statements include, but are
not limited to, competitive pricing for the company's products; the success
of new initiatives, acquisitions and ongoing cost reduction efforts; changes
in raw materials, energy and other costs; impact of Year 2000 issues;
unanticipated manufacturing disruptions; fluctuations in demand and changes
in production capacities; changes to economic growth in the U.S. and
international economies, especially in Asia and Brazil; stability of
financial markets; governmental policies and regulations, including but not
limited to those affecting the environment and the tobacco industry;
restrictions on trade; interest rates and currency movements.
Item 3. QUANTITATIVE and QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
In April 1999, EPA, Region III, issued Notices of Violation (NOVs) to seven
paper industry facilities, including the company's Luke, Maryland, mill
alleging violation of EPA's Prevention of Significant Deterioration (PSD)
regulations requiring special permitting and emissions evaluation
prior to industrial expansion. The NOV received by the company primarily
targets three capital projects at the mill, one in 1982 and two in 1989. The
NOV alleges that the company did not obtain PSD permits or install required
pollution controls, and it sets forth EPA's authority to seek $27,500 per
day for each violation. The company has presented substantial data
demonstrating that PSD requirements did not apply to the targeted projects
and that new emission controls proposed by EPA are not required by the
governing regulations. Unless the matter is resolved, an enforcement action
may be brought against the company.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27. Financial data schedule
(b) Reports on Form 8-K:
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WESTVACO CORPORATION
(Registrant)
September 14, 1999 /s/ Helen Murphy
Helen Murphy
Senior Vice President
(Principal Financial Officer)
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