Westvacos first-quarter net income fell due to a decline in demand for its food packaging materials despite total income rising by 13%.


Total income hit 650m ($937.6m), up from 562.5m for the same period last year, but net income dropped 34% to 23m.


The company said the decline in earnings was a result of the slowdown in the US economy and a lower demand for coated papers. Sales of paper were down 15% to 174.7m.


Westvaco was also hit by rising energy costs and competition from imports into the US due to the strong dollar.
Westvaco chairman and chief executive John Luke said: We are disappointed by our results in paper and some packaging markets. The current slowdown highlights the importance of product innovation. We are only beginning to tap the full potential of last years acquisitions.