Exhibit 13


HIGHLIGHTS OF THE YEAR


WESTVACO CORPORATION AND CONSOLIDATED SUBSIDIARY COMPANIES


Year ended October 31                   1999              1998
In millions, except per share

INCOME STATEMENT
Net Sales                           $2,801.8          $2,885.9
Operating profit
  (before corporate and other)        $305.0            $345.5
Net income before
  nonrecurring items  1               $145.1            $135.0
Net income                            $111.2            $132.0

PER SHARE DATA
Earnings before
  nonrecurring items  1                $1.45             $1.33
Earnings                               $1.11             $1.30
Book value                            $21.65            $22.39
Dividends                               $.88              $.88

1  Excludes the 1999 fourth quarter after-tax charge for restructuring
   of $48.9 million, or $.49 per share, and a credit of $15.0 million,
   or $.15 per share, for a release of deferred taxes.  1998 fourth
   quarter excludes an after-tax charge for restructuring of $3 million,
   or $.03 per share.  All per share data is for basic and diluted.


CASH FLOW
Cash from operations                  $412.7            $406.7
Capital Expenditures                  $228.9            $423.0
Dividends                              $88.2             $89.3

BALANCE SHEET
Total assets                        $4,896.7          $5,008.7
Long-term obligations               $1,502.2          $1,526.3
Shareholders' equity                $2,171.3          $2,246.4
Net change in working capital          $40.8           ($127.6)
Debt to capital                         33.6%             33.6%
Return on capital employed               2.5%              2.9%



                      QUARTERLY HIGHLIGHTS

SALES                  1999            1998
In millions

First                 650.7          $702.1
Second                679.5           724.2
Third                 700.2           727.8
Fourth                771.4           731.8
Year               $2,801.8        $2,885.9


DIVIDENDS PER SHARE    1999            1998

First                  $.22            $.22
Second                  .22             .22
Third                   .22             .22
Fourth                  .22             .22
Year                   $.88            $.88


EARNINGS           1999       1998         1999          1998

                EARNINGS PER SHARE         EARNINGS PER SHARE
         BEFORE NONRECURRING ITEMS 1
First             $ .25      $ .32         $.25          $.32
Second              .27        .34          .27           .34
Third               .35        .31          .35           .31
Fourth              .58        .36          .24           .33
Year              $1.45      $1.33        $1.11         $1.30


STOCK PRICES  2               1999                       1998
                   High        Low         High           Low
First            $29.50     $21.44       $34.19        $29.44
Second            29.88      20.81        34.13         29.56
Third             32.81      28.19        31.63         24.94
Fourth            31.25      24.75        27.38         21.00


2   This table reflects the range of market prices of Westvaco
common stock as quoted in the New York Stock Exchange - Composite
Transactions.  The New York Stock Exchange is the principal market
in which the securities are traded.



MAJOR BUSINESS SEGMENTS
Dollars, in millions

(Pie charts)

SALES

Packaging (Includes
  Rigesa, Ltda.)           $1,461.7       52%
Specialty Chemicals        $  314.5       11%
Paper (Includes Envelopes) $1,028.5       37%


OPERATING PROFIT

Packaging (Includes
  Rigesa, Ltda.)            $190.5       63%
Specialty Chemicals         $ 52.5       17%
Paper (Includes Envelopes)  $ 62.0       20%


CAPITAL EXPENDITURES

Packaging (Includes
  Rigesa, Ltda.)            $130.8       62%
Specialty Chemicals         $ 18.1        9%
Paper (Includes Envelopes)  $ 60.0       29%




Management's discussion and analysis of financial condition
and results of operations

Analysis of operations
Sales of $2.8 billion for the fiscal year were down 2.9% from
1998, the result of a 4.3% decrease in price and product mix
partially offset by a 1.4% improvement in the volume of
shipments.  Net income in 1999 was $111.2 million, or $1.11
per share, basic and diluted, a 15.8% decrease from 1998
earnings of $132.0 million, or $1.30 per share, basic and
diluted.  Earnings for the current year include a pretax
restructuring charge of $80.5 million, or $.49 per share,
basic and diluted, in connection with a business performance
improvement plan and an income tax benefit of $15.0 million,
or $.15 per share, basic and diluted, related to a release of
deferred taxes, both recorded in the fourth quarter (see
notes to the financial statements).  The restructuring charge
included $76.0 million for the writedown of fixed assets.  We
expect to obtain about $35 million in pretax annual savings
from both operational efficiencies and from scaling back
operations that no longer meet our financial or strategic
objectives.  We estimate these restructuring activities will
be completed by the end of fiscal year 2000.  The income tax
benefit results from a business reorganization which reduced
the company's deferred state income tax liability.  Earnings
for 1999 include an after-tax gain of $14.0 million, or $.14
per share, basic and diluted, from the sale of nonstrategic
timberlands.

Sales for the year continued to be affected by weak pricing
primarily due to global overcapacity combined with a strong
U.S. dollar.  During the second half of the year, 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 a $60 per ton price increase for coated web-offset
paper products, as well as increases on additional grades,
including linerboard and bleached board.  Export sales from
the United States increased compared to 1998 and accounted
for 18% of the company's consolidated sales.  Total sales
outside of the United States, including sales of our
foreign operating subsidiaries, accounted for
approximately 24% of consolidated sales compared to
25% in the prior year.  Gross profit margin for the
year improved to 20% compared with 19% for the prior
year, due mainly to cost improvement initiatives.
Fiscal year 1999 operating results also benefited
from an increase in noncash pension credits of $26.9
million, reflecting cumulative favorable investment
returns on pension plan assets.  We anticipate that
earnings in fiscal year 2000 will benefit from a
similar increase over fiscal year 1999.

  Paper segment: Paper segment sales for the year of
$1.03 billion increased marginally from the prior
year, due to an increase in volume of 7.1% offset by
a decrease in price and product mix of 6.8%.  Markets
for the company's paper products continue to be very
competitive, resulting in net sales realizations
being substantially below 1998 levels.  Paper
shipments for the fourth quarter of 1999 were up
approximately 15% compared to the same prior year
period.  Late in the third quarter, the company
announced the first price increase since 1996 for
coated paper products.  Operating profit for the
paper segment for the year was $62.0 million, which
decreased from $84.8 million for the prior year
period, due mainly to lower sales prices.

  Packaging segment: Packaging segment sales
decreased 6.8% from the prior year to $1.46 billion
in 1999, due to decreases in price and product mix of
5.3% and volume of 1.5%.  Markets for the company's
paperboard products continue to be very competitive,
and our net sales realizations per ton were below
1998 levels.  Operating profit for 1999 decreased
8.2% to $190.5 million primarily due to product
pricing pressures which offset the company's
progress in cost improvement initiatives. Promising
trends in our packaging businesses include improved
linerboard prices, increased sales of unbleached
folding carton board and higher shipments in Brazil
during the second half of the year compared to the
first half.  Rigesa, Ltda., our Brazilian subsidiary,
accounted for 13% of 1999 packaging segment operating
profit compared to 17% for the 1998 comparable period,
due primarily to the 64% devaluation of the Brazilian
real during the year, following the Brazilian government's
decision to allow the real to float.  In the local currency,
Rigesa's sales for the year increased 12% compared to
the year earlier period.  We anticipate that the
unsettled global economic conditions will continue to
pose special challenges for our industry.  During
1999, approximately 26% of packaging segment sales
were made to the tobacco industry for packaging
tobacco products compared to approximately 28% for
1998.  Approximately 18% of segment sales were
exported or used to produce products for export with
the remaining 8% 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
packaging 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.

  Chemicals segment: Chemicals segment sales for the
year decreased 5.3% from 1998 to $314.5 million, due
to favorable changes in price and product mix of 3.3%
which were more than offset by a decrease in volume
of 8.6%.  Operating profit for the chemicals segment
was $52.5 million compared to $53.2 million in the
prior year.

  Other items: Other income (expense) increased from
the prior year due to the increased gains on the
sales of timberlands in the current year.  Interest
expense increased 12% for the year compared to the
prior year, due to the lower levels of capitalized
interest in the current year and increased use of
commercial paper.  The effective tax rate for 1999
decreased to 24.9% compared to 35.4% in the prior
year, principally due to the reduction in the
deferred state income tax liability to reflect a
lower effective state income rate, as described
above.

  In October 1999, Westvaco signed a definitive
agreement to acquire Temple-Inland's bleached
paperboard mill in Evadale, TX. The company will pay
$575 million for the mill's fixed assets and
approximately $50 million for working capital.  The
transaction is scheduled to close in December 1999.

  On November 29, 1999, Westvaco signed a definitive
agreement to acquire Mebane Packaging Group, a
leading supplier of packaging for pharmaceutical
products and personal care items.  The sale
is scheduled to close by the end of the first quarter
of fiscal 2000.

Fiscal year 1998
Extremely challenging global business conditions were
felt throughout our industry during our 1998 fiscal
year.  Asian markets were particularly challenging as
a result of currency devaluations and reduced
economic activity in the region.  Sales of $2.9
billion for the fiscal year were down 3.2% from 1997,
the result of decreases of 1.8% in the volume of
shipments and 1.4% in price and product mix.  Net
income in 1998 was $132.0 million, or $1.30 per share,
basic and diluted, a decline of 18.9% from $162.7
million, or $1.60 per share basic and $1.58 per share
diluted, earned in 1997.  Other principal factors
contributing to our decline in earnings included a
strike within our Envelope Division and difficult
circumstances within our Consumer Packaging Division,
which are discussed in the paper and packaging segment
analyses, respectively.  Despite stiff challenges resulting
from turmoil in international markets and adverse
currency valuations, export sales from the United
States increased slightly compared to 1997 and
represented approximately 17% of the company's
consolidated sales for 1998.  Sales outside of the
United States, including sales of our foreign
operating subsidiaries, accounted for approximately
25% of consolidated sales and were slightly below
prior year levels.  The marginal improvements in most
international markets were more than offset by
reduced business for our packaging operations in
Brazil, where the government's austerity measures
enacted last fall in response to the Asian crisis had
sharply curtailed economic growth.  Gross profit
margin for the year was 19% in both 1998 and 1997.
As discussed further below, the effect of weakened
product pricing was largely offset by our cost
improvement initiatives. Depreciation and
amortization expense for the year increased 4.4% from
the prior year, due to several important projects
having been placed in service and the effect of
acceleration of lives on replaced assets.

  Paper segment sales for the year decreased 2.8% to
$1.03 billion, due to decreases in volume of .8% and
in price and product mix of 2.0%.  Operating profit
for the paper segment for the year was $84.8 million
which increased from $82.0 million for the prior year
period due mainly to increased efforts in our cost
improvement initiatives that were offset by the
effect of the Envelope Division strike.  In February
1998, six of the company's eight Envelope Division
locations went on strike.  The strike, which was
settled in early March, reduced second quarter
consolidated earnings by approximately $.05 per share
and continued to adversely impact earnings for the
balance of the year.  During 1998, we completed the
second major coated paper machine rebuild in two
years at our mill in Luke, MD.  The rebuilds reduced
both 1997 and 1998 fiscal year earnings by
approximately $.05 per share.

  Packaging segment sales decreased 4.4% from the
prior year to $1.57 billion, due to decreases in volume of
3.1% and price and product mix of 1.3%.  Lower
shipments of domestic commodity grade containerboard
products and Brazilian corrugated boxes were marginally
offset by improvements in our differentiated saturating
kraft paper.  Operating profit for the year decreased 9.2%
from 1997, primarily due to product pricing pressures,
from both manufacturing difficulties and marketing
challenges.  Together these combined to offset the
company's progress in cost improvement initiatives.
Rigesa accounted for 17% of packaging segment
operating profit compared to 21% for the 1997
comparable period.  The Brazilian government's
financial reforms enacted in the fall of 1997 have
sharply curtailed economic growth, which has
reduced business for our packaging operations.  Due
to the decline in the rate of inflation in Brazil
in recent years, effective November 1, 1997, the
Brazilian real became the functional currency for
the company's Brazilian operations and adjustments
resulting from financial statement translations
since then have been included in the shareholders'
equity section of the balance sheet.  The effect of
this change did not have a significant impact on
earnings for the period.  During 1998, approximately
28% of packaging segment sales were made to the
tobacco industry for packaging.  Approximately 18%
of the segment sales were exported or used to produce
products for export with the remaining 10% made for
the domestic tobacco industry for sale in the United
States.  In the fourth quarter of 1998, a pretax charge
of $5 million, or $.03 per share, was recorded, which
was the result of operational changes to strengthen the
Consumer Packaging Division.  The charge reflects costs
associated with announced terminations for
approximately 240 employees and the writedown of
certain assets.

  Chemicals segment sales for the year increased
2.6% from 1997 to $332.1 million, due to favorable
changes in price and product mix of 1.4% and volume
of 1.2%.  Operating profit for the chemicals
segment increased 8.5% to a level of $53.2 million.

  Other income (expense) decreased from the prior
year, due to losses on the sales of plant and
equipment reported in 1998 compared to gains in
1997.  Interest expense increased 18.1% for the
year compared to the prior year period, due to the
issuance of sinking fund debentures in March and
June 1997 and lower levels of capitalized interest
in the current year.  The effective tax rate for
1998 increased to 35.4% compared to 34.0% in the
prior year, principally due to the decline in
foreign earnings subject to lower tax rates.

Liquidity and capital resources
At October 31, 1999, the ratio of current assets to
current liabilities was 1.7 compared to 1.6 and 2.0
in 1998 and 1997, respectively.  The twelve-month
average collection period for trade receivables was
34 days in 1999 compared to 35 days in 1998 and 32
days in 1997.  Finished goods inventories decreased
from prior year levels, reflecting the selective
shutdown of paper machines to control inventory
levels and improved fourth quarter shipments.  Cash
flows from operations were $413 million for 1999,
compared to $407 million in 1998 and $391 million in
1997.  Management believes that the company's ability
to generate cash from operations and its capacity to
issue short-term and long-term debt are adequate to
fund working capital, capital spending and other needs
in the foreseeable future.

 New investment in plant and timberlands was $232
million for 1999, compared to $420 million in 1998
and $614 million in 1997.  Cash payments for these
investments totaled $229 million in 1999, $423
million in 1998 and $621 million in 1997.  This
planned lower level of capital spending follows the
completion of several important initiatives that
added significant support to our long-term
strategy.  At October 31, 1999, the funds required
to complete all authorized capital projects were
approximately $147 million.  Capital expenditures
for 2000 are expected to be approximately $250
million, including the expenditures at the Evadale,
TX, mill after the acquisition, and will be used to
support our current production capacity levels.
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
$15 million in commercial paper outstanding at
October 31, 1999, compared to $80 million at
October 31, 1998, and none at October 31, 1997.
The company maintains a $500 million revolving
credit agreement, and there was no borrowing under
this arrangement during the current year period.
The ratio of debt to total capital employed was 34%
at October 31, 1999, 1998 and 1997.  In 1997, the
Board of Directors authorized the periodic
repurchase of the company's common stock to satisfy
issuances under its stock option plans. During
1999, 460,000 shares were purchased at a cost of
$11 million and 466,169 shares were issued out of
treasury to satisfy stock option exercises.

  During the second quarter of 1999 the company
completed the acquisition of an equity interest in
a new consumer packaging business with a plant in
Guangzhou, China.  The company paid $22.7 million
for a 45% interest in the Chinese operations. The
investment was financed from operating cash flows.

  As discussed earlier the company signed two
definitive agreements to acquire Temple-Inland's
bleached board mill and the Mebane Packaging Group.
In November 1999, the company issued $200 million of
6.85% five-year notes and $200 million of 7.10% ten-
year notes to fund part of these purchases, with the
remainder to be financed with short-term debt backed
by a revolving credit facility which will be replaced
with long-term debt as market conditions permit.

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, represented 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.

Year 2000 (as of mid-December 1999)
Westvaco's six-phase base program aimed at identifying
and eliminating the company's Year 2000 problems in
high-risk areas was substantially complete by June 30,
1999.  The six phases (inventory, assessment of
business criticality, technical assessment of
potential Year 2000 failures, remediation,
testing and contingency planning) encompassed
both information and noninformation technology
systems.  For 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.

As the company's Year 2000 compliance efforts are
an ongoing process, Westvaco has, where
necessary, expanded and advanced its Year 2000
base program to enhance the company's level of
readiness beyond the base program June 30 target
date.  With the 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 measures to date; (2)
refine Westvaco's contingency plans after
consulting with experts in the power and process
manufacturing industries and reviewing procedures
to be followed prior to and upon any computer-
related system failure at Westvaco or at a
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) identify and resolve open items
by taking steps similar to those undertaken as
part of the company's six-phase base program.
Open items may include (a) newly reclassified,
high-risk items, as well as medium- and low-risk
items where remediation may have been planned but
not yet completed; (b) components overlooked
during the base program; (c) new components
purchased subsequent to June 30, 1999 (excluding
those acquired in connection with the Evadale,
TX, mill and Mebane Packaging Group transactions
discussed below); (d) storeroom items not
included in the base program; and (e) key vendors
and customers from whom Westvaco has not yet seen
confirmation of readiness.  The advanced program
is progressing, yet significant work remains.
Nevertheless, the company continues to be
optimistic concerning its readiness, particularly
in light of growing confidence in the national
electrical supply grid.

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 limited configuration of
manufacturing processes to prepare for 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 October 31, 1999, 86%
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.  Fewer than 30 of these
remaining vendors could individually be of such
significance to the company or to a particular
facility that such vendor's potential
noncompliance could materially impact the
company. Westvaco cannot provide assurance that
the Year 2000 compliance plans of its vendors,
particularly those providing broad
infrastructural services or those in
international markets, will be successfully
completed in a timely manner.

The Year 2000 disclosures of major customers are
reviewed on an ongoing basis.  To date, Westvaco
is not aware of any major customer failing to
progress toward Year 2000 compliance.  Although
the company cannot predict the likelihood of
disruption of its customers' businesses, Westvaco
believes that its customer base is broad enough
to minimize the impact of any single customer's
disruption.

Estimated costs of the work necessary to address
the company's Year 2000 issues are now between $7
million and $8 million.  Previously estimated
costs of $9 million to $12 million reflected
initial uncertainty concerning the scope of the
company's Year 2000 challenge.  As before, the
current 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 compliance work.

As of October 31, 1999, approximately $7.1
million in 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 further 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 reduced demand and 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 efforts 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.

The plans and actions described above do not include
the Evadale, TX, bleached paperboard mill which
Westvaco has agreed to purchase from Temple-
Inland nor the seven packaging plants Westvaco
has recently agreed to purchase from Mebane
Packaging Group.

Temple-Inland has adopted and is implementing a
companywide Year 2000 plan.  On a corporate
basis, most systems were reportedly compliant
before the end of 1998.  Westvaco has evaluated, to
the extent feasible, the preparations and current
status of Year 2000 readiness of the Evadale
facility.  This limited evaluation indicates that important
remediation and testing remain to be completed in
the process systems at Evadale.  This work is
expected to be accomplished during a previously
planned 10-day shutdown in mid-December 1999.
Temple-Inland has represented to Westvaco that
assuming the successful completion of Temple-
Inland's Year 2000 plan in a timely manner that any
Year 2000-related problems that occur, should there
be any, will be minor and not material to the
facility.

  Mebane has also adopted and is implementing a
companywide Year 2000 plan.  Westvaco has not been
able to ascertain the extent to which Mebane's
program has been effectively executed. Given the
company's recent agreement to acquire Mebane and its
inability to review thoroughly Mebane's progress
before the transition date, Westvaco has asked
Mebane to focus on business contingency planning.

  With respect to both the Evadale facility and the
Mebane plants, Westvaco is currently unable to make
a comprehensive assessment of their respective
readiness or determine with certainty whether all
necessary Year 2000 preparations will be complete
by the acquisition dates.

Accounting changes
The company is required to adopt a new accounting
standard issued by the Financial Accounting
Standards Board, Statement of Financial Accounting
Standards No. 133, Accounting for Derivative
Instruments and Hedging Activities, in fiscal year
2001. The company does not believe that the
adoption of this statement will have a material
effect on the company's financial position or
results of operations.  For further discussion, see
the "Summary of significant accounting policies" in
the notes to the financial statements.

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.



Fourth quarter results
Sales were $771.5 million for the fourth quarter of 1999
compared to sales of $731.8 million for the fourth quarter
of 1998.  In the fourth quarter of 1999, the company
recorded net income of $23.7 million, or $.24 per share,
basic and diluted, compared to net income of $33.2 million,
or $.33 per share basic and diluted, for the
prior year period.

During the fourth quarter of 1999, as a result of its
recently completed strategic review process, the company
adopted a plan to improve performance and established a
related pretax restructuring charge of $80.5 million, or
$.49 per share after-tax, basic and diluted.  The
restructuring charge is primarily a noncash writedown of
assets, including underutilized production capacity in our
packaging and bleached board operations and an older paper
machine in our fine papers operations.

Net income for the fourth quarter also benefited from a
decrease in the company's income tax expense, primarily
attributable to a one-time $15 million, or $.15 per share
after-tax, basic and diluted, reduction in the state
deferred tax liability, resulting from a business
reorganization.

Investor services plan
At year end, 14,890 shareholders, including members of the
company's savings and investment plans for salaried and
hourly employees, representing 14,886,201 shares of Westvaco
common stock, were participants in the company's Investor
Services Plan.

Number of shareholders
At year end, the number of individuals and institutions
owning Westvaco common shares was about 19,070.  This number
includes 12,000 members of the company's salaried and hourly
savings and investment plans.  The plans, established in
1968 and 1995, respectively, hold 13,490,136 shares of
Westvaco common stock for the accounts of participants.
This represents 13% of the 100,292,843 shares of common
stock outstanding at year end.

Payroll and benefit costs
The total cost of payroll and benefits was $623 million,
compared with $671 million in 1998.  This includes $44.7
million in Social Security taxes in 1999 and $47.4 million
in 1998.  Payroll and benefit costs were 22% of sales in
1999 and 23% in 1998.  Sales per employee have increased 19%
in the last five years.  In 1994, they stood at $184,014,
rising to $219,753 in 1999.




Financial statements


CONSOLIDATED STATEMENT OF INCOME

In thousands, except per share
                                             Year ended October 31
                                         1999         1998         1997
Sales                              $2,801,849   $2,885,917   $2,982,288
Other income [expense]                 29,384       18,747       28,743
                                    2,831,233    2,904,664    3,011,031
Cost of products sold [excludes
  Depreciation shown separately
  below]                            1,969,515    2,071,011    2,161,194
Selling, research and
  administrative expenses             230,963      238,097      240,814
Depreciation and amortization         280,470      280,981      269,151
Restructuring charge                   78,771            -            -
Interest expense                      123,538      110,162       93,272
                                    2,683,257    2,700,251    2,764,431

Income before taxes                   147,976      204,413      246,600

Income taxes                           36,800       72,400       83,900

Net income                        $   111,176     $132,013  $   162,700

Net income per share:
Basic                                   $1.11        $1.30        $1.60
Diluted                                  1.11         1.30         1.58

Shares used to compute net
  income per share:
Basic                                 100,236      101,311      101,978
Diluted                               100,495      101,788      102,704



The accompanying notes are an integral part of these financial statements.

Westvaco Corporation and
consolidated subsidiary companies


CONSOLIDATED BALANCE SHEET
In thousands
                                                   At October 31
                                              1999          1998
Assets
Cash and marketable securities          $  108,792      $105,050
Receivables                                318,369       286,423
Inventories                                248,963       285,783
Prepaid expenses and other current assets   61,884        61,936
  Current assets                           738,008       739,192
Plant and timberlands:
  Machinery                              5,094,773     5,079,177
  Buildings                                672,744       655,020
  Other property, including plant land     226,977       224,229
                                         5,994,494     5,958,426
  Less:  accumulated depreciation        2,779,199     2,634,702
                                         3,215,295     3,323,724
  Timberlands-net                          266,386       273,975
  Construction in progress                  99,702       204,732
                                         3,581,383     3,802,431
Other assets                               577,301       467,045
                                        $4,896,692    $5,008,668


Liabilities and shareholders' equity
Accounts payable and accrued expenses   $  361,959    $  346,552
Notes payable and current maturities of
  long-term obligations                     50,200        99,072
Income taxes                                12,955        21,501
  Current liabilities                      425,114       467,125
Long-term obligations                    1,502,177     1,526,343
Deferred income taxes                      798,113       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]                          765,810       764,574
  Retained income                        1,607,504     1,588,932
  Accumulated other comprehensive
   income [loss]                          [129,981]      [32,167]
  Common stock in treasury, at cost
     Shares held: 2,877,824 [1998-
     2,844,300]                            [72,045]      [74,891]
                                         2,171,288     2,246,448
                                        $4,896,692    $5,008,668



The accompanying notes are an integral part of these financial
statements.

Westvaco Corporation and
  consolidated subsidiary companies

<TABLE>
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
In thousands
<CAPTION>

                                                                         Accumulated
                                                   Common                      other         Total
                         Outstanding    Common   stock in     Retained comprehensive shareholders'
                              shares     stock   treasury       income income/(loss)        equity

<S>                          <C>      <C>        <C>        <C>           <C>           <C>
Balance at October 31, 1996  101,891  $750,457   $[19,745]  $1,479,025             -    $2,209,737
 Net income                        -         -          -      162,700             -       162,700
 Cash dividends                    -         -          -      [89,778]            -       [89,778]
 Repurchases of
   common stock                 [610]        -    [20,880]           -             -       [20,880]
 Issuance                        649    11,065      8,315       [2,591]            -        16,789

Balance at October 31, 1997  101,930   761,522    [32,310]   1,549,356             -     2,278,568
 Comprehensive income
   Net income                      -         -          -      132,013             -       132,013
   Foreign currency
    translation                    -         -          -            -    $  [32,167]      [32,167]
     Comprehensive income                                                                   99,846
 Cash dividends                    -         -          -      [89,300]            -       [89,300]
 Repurchases of
   common stock               [1,822]        -    [50,176]           -             -       [50,176]
 Issuance                        218     3,052      7,595       [3,137]            -         7,510

Balance at October 31, 1998  100,326   764,574    [74,891]   1,588,932       [32,167]    2,246,448
 Comprehensive income
   Net income                      -         -          -      111,176             -       111,176
   Foreign currency
    translation                    -         -          -            -       [97,814]      [97,814]
     Comprehensive income                                                                   13,362
 Cash dividends                    -         -          -      [88,191]            -       [88,191]
 Repurchases of
   common stock                 [499]        -    [11,961]           -             -       [11,961]
 Issuance                        466     1,236     14,807       [4,413]            -        11,630

Balance at October 31, 1999  100,293  $765,810   $[72,045]  $1,607,504     $[129,981    $2,171,288
<FN>
<F1>
The accompanying notes are an integral part of these financial
statements.
</FN>

Westvaco Corporation and consolidated subsidiary companies
</TABLE>

CONSOLIDATED STATEMENT OF CASH FLOWS
In thousands
Year ended October 31
                                             1999       1998       1997
Cash flows from operating activities:
  Net income                            $ 111,176  $ 132,013  $ 162,700
  Adjustments to reconcile net income
   to net cash provided by operating
   activities:
    Provision for depreciation and
     amortization                         280,470    280,981    269,151
    Provision for deferred income taxes    32,286     57,244     46,798
    Restructuring charge                   80,500          -          -
    Pension credit and other employee
     benefits                             [78,658]   [50,869]   [39,296]
    [Gains] losses on sales of plant
     and timberlands                      [17,891]       894    [10,537]
    Foreign currency transaction
     [gains] losses                         3,601      2,506      4,316
  Net changes in assets and
   liabilities                             [2,577]   [17,063]   [43,380]
  Other, net                                3,806      1,000        931
        Net cash provided by operating
         activities                       412,713    406,706    390,683

Cash flows from investing activities:
  Additions to plant and timberlands     [228,879]  [422,984]  [621,172]
  Proceeds from sales of plant and
   timberlands                             22,781      6,905     22,292
  Other investments                       [22,659]         -          -
  Other, net                               [1,135]        50      5,912
        Net cash used in investing
         activities                      [229,892]  [416,029]  [592,968]

Cash flows from financing activities:
  Proceeds from issuance of common stock    9,122      3,766     10,901
  Proceeds from issuance of debt          881,518    548,194    649,186
  Dividends paid                          [88,191]   [89,300]   [89,778]
  Treasury stock purchases                [10,792]   [49,484]   [17,374]
  Repayment of notes payable and
   long-term obligations                 [952,230]  [470,146]  [290,018]
        Net cash [used in] provided by
         financing activities            [160,573]   [56,970]   262,917

Effect of exchange rate changes on cash   [18,506]    [4,011]      [646]

  Increase [decrease] in cash and
    marketable securities                   3,742    [70,304]    59,986
Cash and marketable securities:
  At beginning of period                  105,050    175,354    115,368
  At end of period                      $ 108,792  $ 105,050  $ 175,354



The accompanying notes are an integral part of these
financial statements.


Westvaco Corporation
and consolidated subsidiary companies

Summary of significant accounting policies
Basis of consolidation and preparation of financial
statements:  The consolidated financial statements
include the accounts of all subsidiaries more than
50% owned. Investments in 20%- to 50%-owned
companies are accounted for using the equity
method.  Accordingly, the company's share of the
earnings of these companies is included in
consolidated net income.  In accordance with
generally accepted accounting principles, the
preparation of financial statements requires
management to make estimates and assumptions that
affect the reported amounts of some assets and
liabilities and, in some instances, the reported
amounts of revenues and expenses during the
reporting period.  Actual results could differ from
these estimates.  Certain prior years' amounts have been
reclassified to conform with the current year's
presentation.

Accounting standards changes:  Effective November
1, 1998, the company adopted Statement of
Financial Accounting Standards (SFAS) No.130,
Reporting Comprehensive Income, which establishes
standards for the reporting and displaying of
comprehensive income.  During the fourth quarter
of fiscal 1999, the company adopted, SFAS No. 132,
Employers' Disclosures about Pensions and Other
Postretirement Benefits which standardizes the
disclosure requirements for pensions and other
postretirement benefits.  These two standards
do not affectfinancial statement presentation and
disclosure but do not have a material impact on
the company's consolidated financial position or
results of operations. The 1998 and 1997
comparative financial information has been
restated to conform with the 1999 presentation.

In June 1998, the Financial Accounting Standards
Board (FASB) issued SFAS No. 133, Accounting for
Derivative Instruments and Hedging Activities
which requires derivative instruments to be
recorded in the balance sheet at their fair value,
with changes in their fair value being recognized
in earnings unless specific hedge accounting
criteria are met.  SFAS No. 137, Accounting for
Derivative Instruments and Hedging Activities -
Deferral of the Effective Date of SFAS No. 133,
delayed the effective date of SFAS No. 133 to the
company's 2001 fiscal year.  Given the current
level of its derivative and hedging activities,
the company believes the impact of this new
standard will not be material.

Environmental matters:  Environmental expenditures
that increase useful lives are capitalized, while
other environmental expenditures are expensed.
Liabilities are recorded when remedial efforts are
probable and the costs can be reasonably
estimated.  The estimated closure costs for
existing landfills based on current environmental
requirements and technologies are accrued over the
expected useful lives of the landfills.

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
for which the company has accrued approximately
$10 million for remediation and closure costs.

Translation of foreign currencies:  Due to the
decline in the rate of inflation in Brazil in
recent years, effective November 1, 1997, the
Brazilian real became the functional currency for
the company's Brazilian operations.  The assets
and liabilities of the company's Brazilian
subsidiary are translated into U.S. dollars using
periodend exchange rates and adjustments resulting
from financial statement translations are included
inin the "Accumulated other comprehensive income
(loss)" in the balance sheet. Revenues and
expenses are translated at average rates
prevailing during the period.

Prior to November 1, 1997, the functional currency
for these operations was the U.S. dollar due to the
high inflation rate which previously existed in
that country. Foreign currency asset and liability
accounts were remeasured into U.S. dollars at
fiscal year-end rates except for inventories,
properties and accumulated depreciation, which
were translated at historical rates; revenues and
expenses (other than those relating to assets
translated at historical rates) were translated at
average rates prevailing during the year.
Translation gains and losses were included in
"Other income (expense)."

Marketable securities:  For financial statement
purposes, highly liquid securities purchased three
months or less from maturity are considered to be
cash equivalents.

Inventories:  Inventories are valued at the lower
of cost or market.  Cost is determined using the
last-in, first-out (LIFO) method for raw
materials, finished goods and certain production
materials.  Cost of all other inventories is
determined by the first-in, first-out (FIFO) or
average cost method.

Plant and timberlands:  Owned assets are recorded
at cost.  Also included in the cost of these assets is
interest on funds borrowed during the construction
period.  When assets are sold, retired or disposed of,
their cost and related accumulated depreciation are removed
from the accounts, and any resulting gain or loss is
reflected in "Other income (expense)."  Costs of
renewals and betterments of properties are
capitalized; costs of maintenance and repairs are
charged to income.  Costs of reforestation of
timberlands are capitalized.

Depreciation and amortization:  The cost of plant
and equipment is depreciated, generally by the
straight-line method, over the estimated useful
lives of the respective assets, which range from
20 to 40 years for buildings and 5 to 30 years
for machinery and equipment.  The cost of
standing timber is amortized as timber is cut, at
rates determined annually based on the
relationship of unamortized timber costs to the
estimated volume of recoverable timber. The
company periodically evaluates whether current
events or circumstances warrant adjustments to
the carrying value or estimated useful lives of
its long-lived assets.

Other assets:  Included in other assets are
goodwill and other intangibles, which are
amortized using the straightline method over
their estimated useful lives of 10 years. The
company periodically reviews goodwill balances
for impairment based on the expected future cash
flows of the related businesses acquired.

Revenue recognition:  The company recognizes
revenues at the point of passage of title, which
is at the time of shipment.

Income taxes:  Deferred income taxes are recorded
for temporary differences between financial
statement carrying amounts and the tax basis of
assets and liabilities.  Deferred tax assets and
liabilities reflect the enacted tax rates in effect
for the years the differences are expected to reverse.

Income per share:  Basic net income per share
for all the periods presented has been
calculated using the weighted average shares
outstanding.  In computing diluted net income
per share, incremental shares issuable upon the
assumed exercise of stock options have been
added to the weighted average shares
outstanding.


Notes to financial statements

A.   Provision for restructuring
During the fourth quarter of 1999, following
completion of its strategic review process, the
company adopted a plan to improve the its
performancecompany's performance, principally to
enhance the strength and focus of its packaging-
related businesses.  Additionally, the company
reviewed certain long-lived assets in its
business for impairment.  As a result of the
above initiatives, a pretax charge of
$80,500,000 was recorded in the fourth quarter
of 1999.  This charge is primarily due to the
writedown of impaired long-lived assets, involuntary
employee termination and other exit costs.

 Production facilities were written down to
their fair value using an assets-held-for-use model.
An impairment of $67,430,000 was recorded as
undiscounted cash flows were less than the
carrying value of the assets prior to the
impairment.  Further, the company wrote off a
paper machine and certain equipment with a
total carrying value of $8,593,000 and abandoned
the assets.

 In addition to the asset impairments described
above, the company also recognized inventory
write downs of $1,729,000 which have been
included within the cost of products sold,
employee termination costs of $1,508,000 and
other exit costs of $1,240,000.

B.   Other income (expense)
Components of other income (expense) are as follows:

In thousands                            1999       1998        1997
Gains [losses] on sales of plant,
 equipment and timberlands           $17,891    $  [894]    $10,537
Interest income                       15,115     18,010      15,089
Foreign currency transaction
 gains [losses]                       [3,601]    [2,506]     [4,316]
Other, net                               [21]     4,137       7,433
                                     $29,384    $18,747     $28,743

C.  Research and development
Expenditures of $47,321,000 (1998-$45,139,000, 1997-$42,944,000)
were expensed as incurred.

D.  Income taxes
Income before provision for income taxes consisted of:

In thousands                          1999        1998        1997
Domestic                          $113,350    $157,075    $177,323
Foreign                             34,626      47,338      69,277
                                  $147,976    $204,413    $246,600

The provision for income taxes is composed of:

In thousands                          1999        1998        1997
Current:
 Federal                           $ 4,430     $ 9,254     $23,982
 State                              [4,634]     [3,243]      3,503
 Foreign                             4,718       9,145       9,617
                                     4,514      15,156      37,102

Deferred:
 Federal                            43,254      45,871      35,949
 State                             [15,366]     11,792       9,375
 Foreign                             4,398        [419]      1,474
                                    32,286      57,244      46,798
                                   $36,800     $72,400     $83,900

The net deferred income tax liability at October 31, 1999
and 1998 includes the following components:

In thousands                                      1999        1998
Current deferred tax assets:
 Employee benefits                           $  15,397   $  15,430
 Other                                          28,089      25,288
                                                43,486      40,718
Noncurrent deferred tax assets:
 Alternative minimum tax carryforward          143,802     143,581

Noncurrent deferred tax liabilities:
 Depreciation                                  654,604     643,834
 Pension and other employee benefits           161,512     133,351
 State and local taxes                          91,662      99,487
 Other                                          34,137      35,661
                                               941,915     912,333
Total net deferred tax liability              $754,627    $728,034

The differences (expressed as a percentage of pretax
income) between the U.S. statutory federal income tax rate and
the effective income tax rate as reflected in the accompanying
consolidated statement of income are:

                                             1999       1998       1997
Statutory federal income tax rate            35.0%      35.0%      35.0%
State and local taxes                        [8.8]       2.7        3.4
Foreign income at other than U.S. rates      [1.3]      [2.6]      [4.0]
Other, net                                      -         .3        [.4]
Effective tax rate                           24.9%      35.4%      34.0%

The reduction in the company's fiscal 1999 income tax
expense compared to fiscal 1998 is primarily
attributable to a one-time $15 million
reduction in the state deferred tax liability,
resulting from a business reorganization completed
during fiscal 1999.  The reorganization lowered the
state tax rates at which certain temporary differences,
principally depreciation, are expected to reverse.

  At October 31, 1999, for tax purposes, the
company had available $144 million of
alternative minimum tax credit carryforwards,
which do not expire under current laws.  At
October 31, 1999 the company had available
$4.9 million of foreign tax credit
carryforwards, which, if unused, will expire
in fiscal years 2000 to 2004.

  Provision has not been made for income
taxes which would become payable upon
remittance of $167 million of the October 31,
1999 undistributed earnings of certain
foreign subsidiaries representing that
portion of such earnings which the company
considers to have been indefinitely
reinvested in the subsidiaries, principally
in Brazil.  Computation of the potential
deferred tax liability associated with these
undistributed earnings is not practicable.

E.  Current assets
Marketable securities of $39,349,000 (1998-
$12,032,000) are valued at cost, which
approximates market value. Receivables
include $12,438,000 from sources other than
trade (1998-$5,731,000), and have been
reduced by allowances for discounts and
doubtful accounts of $12,828,000 (1998-
$12,748,000).  Inventories at October 31
are composed of:

In thousands                                      1999        1998
Raw materials                                 $ 45,453    $ 55,580
Production materials, stores and supplies       66,191      74,338
Finished and in process goods                  137,319     155,865
                                              $248,963    $285,783

If inventories had been valued at current cost, they would
have been $368,105,000 in 1999 (1998-$409,043,000).

F.  Interest capitalization
In 1999, $132,428,000 of interest cost was incurred
(1998-$130,914,000, 1997-$119,234,000) of which
$8,890,000 was capitalized (1998-$20,752,000, 1997-
$25,962,000).

G.  Accounts payable and accrued expenses
Accounts payable and accrued expenses at October 31:

In thousands                                      1999       1998
Accounts payable:
  Trade                                       $118,413   $117,306
  Other                                         18,812     24,258
Accrued expenses:
  Taxes, other than income                      18,989     17,239
  Interest                                      32,927     32,996
  Payroll and employee benefit costs            85,179     83,652
  Other                                         87,639     71,101
                                              $361,959   $346,552
H.  Cash flows
Changes in assets and liabilities are as follows:

In thousands                            1999        1998         1997
[Increase] decrease in:
   Receivables                      $[41,054]   $ 12,765     $[23,674]
   Inventories                        24,545     [17,249]      [7,577]
   Prepaid expenses
    and other current assets          [1,148]     [5,905]       1,633
Increase [decrease] in:
   Accounts payable and
    accrued expenses                  24,766      [5,597]      [9,957]
   Income taxes payable               [9,686]     [1,077]      [3,805]
                                     $[2,577]   $[17,063]    $[43,380]

Reconciliation of capital expenditures on a cash basis:

In thousands                            1999        1998        1997
New investment in plant and
 timberlands                        $232,292    $419,705    $613,896
Less:  debt assumed                     [158]         [4]        [21]
       net change in related
        current liabilities           [3,255]      3,283       7,297

Cash additions to plant and
 timberlands                        $228,879    $422,984    $621,172

Cash payments for interest, excluding amounts capitalized, were
$112,066,000 in 1999 (1998-$108,082,000, 1997-$84,503,000).  Cash
payments for income taxes were $12,108,000 in 1999 (1998-$13,744,000,
1997-$39,331,000).

I.  Leasing activities and other commitments
The company leases a variety of assets for use
in its operations.  Leases for administrative
offices, converting plants and storage
facilities generally contain options which
allow the company to extend lease terms for
periods up to 25 years, or to purchase the
properties.  Certain leases provide for
escalation of the lease payments as maintenance
costs and taxes increase.

The company has no significant capital lease
liabilities.  Minimum rental payments under operating
leases that have noncancellable lease terms in excess
of 12 months are as follows:

                                   Operating
In thousands                          leases
2000                                $ 20,636
2001                                  17,829
2002                                  14,583
2003                                  11,438
2004                                   9,383
Later years                           41,473
Minimum lease payments              $115,342


Rental expense under operating leases was
$38,412,000 in 1999 (1998-$40,179,000,
1997-$38,031,000).

  At October 31, 1999, commitments required to
complete currently authorized capital projects are
$147 million.

J.  Notes payable and long-term obligations
Notes payable and long-term obligations at October
31, 1999:

In thousands                               Current     Noncurrent
Debentures:
   9.65%, due 2002                                    $   100,000
   9 3/4%, due 2020                                       100,000
Sinking Fund Debentures:
   7%, due 2004-2023                                      150,000
   7 1/2%, due 2008-2027                                  150,000
   7.65%, due 2008-2027                                   150,000
   7.75%, due 2004-2023                                   150,000
   8 1/8%, due 2000-2007                   $ 2,350         17,100
   8.30%, due 2003-2022                                   125,000
   10 1/8%, due 2000-2019                    5,000         95,000
   10 1/4%, due 2000-2018                    5,000         80,000
   10.30%, due 2000-2019                     5,000         95,000
Pollution Control Revenue Bonds:
   5.85-6.65%, due 2004-2018                               26,620
   5 7/8-5.9%, due 2000-2003                 1,865          6,740
   5 7/8-6.2%, due 2000-2007                   550         11,480
   5.9-6.2%, due 2004-2008                                  5,900
   6 3/8%, due 2026                                         5,740
   7 1/8-7 1/2%, due 2000-2001               1,500          2,000
   8 1/4%, due 2000-2010                       105          3,995
   9 1/8-9.6%, due 2006-2015                               10,100
   10 1/2%, due 2004                                        1,500
Industrial Revenue Bonds:
   7-7.67%, due 2000-2027                      385         94,530
Economic Development Bonds:
   8 3/4%, due 2000-2010                       110          4,190
Notes payable and other                     28,335        117,282
                                           $50,200     $1,502,177

Outstanding noncurrent obligations maturing in the
four years after 2000 are (in millions); 2001-$37.1;
2002-$133.3; 2003-$36.1; 2004-$56.6.

  The company has a revolving credit agreement
for $500 million which expires December 31,
2000.  Borrowings under the agreement may be in
unsecured domestic or Eurodollar notes and may
be at rates approximating prime or the London
Interbank Offered Rate, at the company's option.
There is a nominal commitment fee on the unused funds.
These facilities are used to support commercial paper
borrowings. There were no borrowings under this
facility during 1999 and none inor 1998.

  At October 31, 1999, the book value of
financial instruments included in notes payable
and long-term obligations was $1,477,162,000
(1998-$1,557,477,000), and the fair value was
estimated to be $1,495,290,000 (1998-$1,636,093,000).
The company has estimated the fair value of financial
instruments based upon quoted market prices for
the same or similar issues or on the current
interest rates available to the company for
debt of similar terms and maturities.


K  Shareholders' equity
During 1999, the company repurchased
460,000 shares (1998-1,800,000, 1997-500,000) of
company stock under a repurchase program
authorized in 1997 by the Board of Directors.
The program was initiated to satisfy issuances
under the company's stock option plans.  There
were no purchases in 1997, 1998 or 1999 under
the stock repurchase program authorized in 1987
by the Board of Directors.

  At October 31, 1999, there were 44,170 shares
of nonvoting $100 par value cumulative preferred
stock authorized and 10 million shares of preferred
stock without par value authorized and available for
issue.

Pursuant to a Rights Agreement approved by the company's
Board of Directors in 1997, in the event a person or
group were to acquire a 15% or greater position in
Westvaco, each right would entitle its holder
(other than the acquiror) to buy that number of shares of
common stock of Westvaco which, at the time of the 15%
acquisition, had a market value of two times
the exercise price of the rights.  If, after the rights
have been triggered, an acquiring company were to merge
or otherwise combine with Westvaco, or Westvaco
were to sell 50% or more of its assets or earning power,
each right would entitle its holder (other than the
acquiror) to buy that number of shares of common stock of the
acquiring company which, at the time of such transaction,
would have a market value of two times the exercise
price of the rights.  The rights have no effect on
earnings per share until they become exercisable.  The
rights expire in December 2007.

L.  Stock option plans
At October 31, 1999, the company had five stock option
plans.  The 1983 and 1988 Stock Option and Stock
Appreciation Rights Plans, 1995 Salaried Employee Stock
Incentive Plan and the 1999 Salaried Employee Stock
Incentive Plan provide for the granting of up to
4,725,000, 4,500,000, 4,837,500 and 5,000,000,
respectively, of stock options and stock appreciation
rights to key employees.  The 1995 Non-Employee Director
Stock Incentive Plan provides for the granting of up to
112,500 stock options and stock appreciation rights to
outside directors.  For the employee plans, stock
options may be granted with or without stock
appreciation rights and are granted at market value.
They are exercisable after a period of six months to one
year and expire not later than ten years from the date
of grant.  Under each employee plan, stock options may
be granted with or without limited stock appreciation
rights, which are exercisable upon the occurrence of
certain events related to changes in corporate control.
In 1999, nearly all outstanding limited stock
appreciation rights, which had previously been granted
to employees were cancelled or surrendered.  In 1997,
nearly all outstanding stock appreciation rights, which
had previously been granted to employees and nonemployee
directors, were cancelled or surrendered.  Subject to
limited exceptions, no new grants for stock appreciation
rights were awarded during 1999.

 The company applies APB Opinion 25, Accounting for
Stock Issued to Employees, in accounting for its plans
and, accordingly, no compensation cost has been
recognized.  If compensation cost for the company's
stock options had been determined based on the fair
value method of SFAS 123, Accounting for Stock-Based
Compensation, the company's net income and net income
per share would have been reduced to the pro forma
amounts as follows:

In thousands,
except per share
Net income                   1999       1998        1997
     As reported         $111,176   $132,013    $162,700
     Pro forma            107,924    127,470     159,089

Income per share - basic
     As reported            $1.11      $1.30       $1.60
     Pro forma               1.08       1.26        1.56
Income per share - diluted
     As reported            $1.11      $1.30       $1.58
     Pro forma               1.07       1.25        1.55

In determining the fair value of options for pro forma
purposes, the company used the Black-Scholes
option pricing model and assumed the following
for options granted in 1999, 1998 and 1997,
respectively:  risk-free interest rate of
4.72%, 5.80% and 6.14%; dividend yield of
3.05%, 2.71% and 3.21%; an expected option
life of six years for each year; and an
expected volatility of 20% for each year.  The
weighted average fair values of the options
granted during 1999, 1998 and 1997 were $5.34,
$7.61 and $6.16 per share, respectively.  The
following table summarizes activity in the
plans for 1999, 1998 and 1997:

                                                    Weighted average
                                      Options         exercise price
Outstanding at October 31, 1996     4,438,224                 $23.61
   Granted                            964,015                  27.44
   Exercised                       [1,022,792]                 21.92
   Cancelled                           [3,235]                 24.55
Outstanding at October 31, 1997     4,376,212                  24.84
   Granted                            981,780                  32.53
   Exercised                         [218,159]                 20.44
   Cancelled                             [992]                 18.75
Outstanding at October 31, 1998     5,138,841                  26.49
   Granted                          1,001,655                  28.78
   Exercised                         [466,169]                 22.31
   Cancelled                          [19,527]                 26.71
Outstanding at October 31, 1999     5,654,800                  27.24

The following table shows various information about stock
 options outstanding at October 31, 1999:
                                                 Range of exercise prices
                               $18.29-     $23.08-     $27.44-     $18.29-
                               $19.13      $26.88      $32.53      $32.53

Number outstanding            128,322   2,639,003   2,887,475   5,654,800
Weighted average price         $18.52      $25.15      $29.63      $27.24
Weighted average
 remaining life (in years)        .85        4.84        8.10        6.41
Number exercisable            128,322   2,609,003   1,933,320   4,670,645
Weighted average price         $18.52      $25.16      $30.02      $26.92


There were 5,488,367 shares available for grant as of
October 31, 1999 (1998-1,470,495, 1997-2,468,055).  At
October 31, 1999, 876,716 outstanding options had
related limited stock appreciation rights.


M.  Employee retirement, postretirement and postemployment benefits

Pension and retirement plans
The company provides retirement benefits for substantially
all domestic employees under several noncontributory
trusteed plans and also provides benefits to employees whose
retirement benefits exceed maximum amounts permitted by
current tax law under an unfunded benefit plan. Benefits are
based on a final average pay formula for the salaried plans
and a unit benefit formula for the hourly paid plans.  Prior
service costs are amortized on a straight-line basis over
the average remaining service period for active employees.
Contributions are made to the funded plans in accordance with
ERISA requirements.  The 1999 net pension credit relating to
employee pension and retirement benefits was $82,280,000
(1998-$55,337,000, 1997-$42,058,000).  The net pension credits
reflect cumulative favorable investment returns on plan assets.
The components of the net pension credit for 1999, 1998 and
1997 are as follows:

In thousands                                 1999       1998       1997
Service cost-benefits earned during
 the period                            $   28,966 $   26,934   $ 23,369
Interest cost on projected benefit
 obligation                                71,714     71,293     65,947
Expected return on plan assets           [171,223]  [148,042]  [126,808]
Net transition asset                       [6,940]    [6,940]    [6,940]
Amortization of prior service cost          5,473      5,312      4,774
Net gain                                  [10,270]    [3,894]    [2,400]
Net pension credit                      $ [82,280] $ [55,337] $ [42,058]


Postretirement benefits
The company provides life insurance for substantially all
retirees and medical benefits to certain retirees in the
form of cost subsidies until medicare eligibility is
reached and to certain other retirees, medical benefits up
to a maximum lifetime amount.  None of these benefits is
funded.  The components of net periodic postretirement benefits cost
for the fiscal years ended October 31, 1999, 1998 and 1997
are as follows:

In thousands                              1999       1998       1997
Service cost-benefits earned
 during the period                      $1,200     $1,400     $1,300
Interest cost                            1,200      1,500      1,500
Net amortization                        [1,100]      [800]      [900]
Net periodic postretirement
 benefits cost                          $1,300     $2,100     $1,900

The changes in the consolidated prepaid pension asset for
defined benefit plans and the accrued postretirement
benefit obligation are shown below.  The net prepaid
pension cost, from the following table, is included in
other assets, except for an obligation of $24.1 million for
an unfunded excess benefit plan which is recorded as a long-
term liability.

The following table sets forth the funded status of the
plans and amounts recognized in the consolidated balance
sheet at October 31, based on a valuation date of July 31:

                                          Pension and        Postretirement
                                  retirement benefits              benefits
In thousands                        1999         1998        1999      1998
Change in benefit obligation
  Benefit obligation at
   beginning of year          $1,084,468   $1,003,647     $23,200   $21,700
  Service cost                    28,966       26,934       1,200     1,400
  Interest cost                   71,714       71,293       1,200     1,500
  Actuarial [loss] gain          [13,833]      24,205      [2,800]    1,100
  Plan amendments                    380        2,469           -         -
  Termination benefits             1,491            -           -         -
  Benefits paid                  [49,797]     [44,080]     [2,900]   [2,500]
  Benefit obligation at
   end of year                $1,123,389   $1,084,468     $19,900   $23,200

Change in plan assets
  Fair value of plan assets
   at beginning of year       $2,337,713   $2,088,419     $     -   $     -
  Actual return on plan
   assets                        324,716      291,895           -         -
  Company contributions            1,663        1,479       2,900     2,500
  Benefits paid                  [49,797]     [44,080]     [2,900]   [2,500]
  Fair value of plan assets
   at end of year             $2,614,295   $2,337,713     $     -   $     -

Funded status of the plans    $1,490,906   $1,253,245    $[19,900] $[23,200]
  Unrecognized net actuarial
   [gain] loss                [1,017,279]    [860,223]     [7,100]   [5,300]
  Unrecognized prior service
   cost [credit]                  47,018       52,111        [100]     [200]
  Unrecognized net transition
   obligation                    [15,966]     [22,906]          -         -
  Net prepaid [accrued]
   benefit cost included in
   the consolidated balance
   sheet                      $  504,679   $  422,227    $[27,100] $[28,700]

  Prepaid benefit cost        $  528,770   $  444,075    $      -  $      -
  Accrued benefit liability      [24,091]     [21,848]    [27,100]  [28,700]

  Total recognized            $  504,679   $  422,227    $[27,100] $[28,700]


The assumptions used in the measurement of the company's benefit
obligations are as follows:

                                        1999      1998      1997
Pension and retirement benefits
  Discount rate                         6.75%     6.75%     7.25%
  Expected return on plan assets        8.75%     9.50%     9.75%
  Rate of compensation increase         5.00%     5.00%     5.50%

Postretirement benefits
  Discount rate                         6.75%     6.75%     7.25%
  Rate of compensation increase         5.00%     5.00%     5.50%


The annual rate of increase in health care costs was assumed
at 6% for 1998, 5% for 1999 and remaining at that level
thereafter.  The effect of a 1% increase in the assumed
health care cost trend rate would increase the July 31, 1999
accumulated postretirement benefit obligation by $288,000
and the net postretirement benefits cost for 1999 by
$70,000.  The effect of a 1% decrease in the assumed health
care cost trend rate would decrease the July 31, 1999
accumulated postretirement benefit obligation by $252,000
and the net postretirement benefits cost for 1999 by
$63,000.

The company also has defined contribution plans that cover
substantially all U.S. employees.  Expense for company
matching contributions under these plans was approximately
$18.0 million in 1999, 1998 and 1997.

Postemployment benefits
The company provides limited postemployment benefits to
former or inactive employees, including short-term
disability, workers' compensation and severance.

N.  Legal and environmental matters
The company is involved in various legal proceedings and
environmental actions, generally arising in the normal
course of its business.  Although the ultimate outcome
of such matters cannot be predicted with certainty, the company
does not believe that the outcome of any proceeding, lawsuit or
claim that is pending or threatened, or all of them combined,
will have a material adverse effect on its consolidated
financial position, liquidity or long-term results of
operations. In any given quarter or quarters, however, it is
possible such proceedings or matters could have a material
effect on results of operations.

O.  Business segment information
In 1997, the Financial Accounting Standards Board issued
SFAS No. 131, "Disclosures about Segments of an Enterprise and
Related Information."  We adopted this statementInformation,
which the company adopted at October 31, 1999. Adoption of the
standard had no impact on our net income.  Previously reported
segment information has been restated to conform to the new
standard.

Westvaco is a leading manufacturer of paper, packaging and
chemicals serving both U.S. and international markets.
The company's operating divisions have been classified into
reportable segments based upon the nature of their products and
services within these three major product categories, with
separate disclosure of Rigesa, Ltda., our wholly owned
Brazilian packaging subsidiary.  Following is a description of
our reportable business segments:

The paper segment is engaged in the manufacturing and
sellingmarketing of printing grade papers and envelopes. All of
this segment's operations are in the United States.  It
operates three mills in the eastern half of the country and
manufactures envelopes at nine domestic plants.

The packaging segment manufactures, markets, and distributes
various bleached paperboard, kraft paper and board, corrugated
shipping containers, food containers, folding cartons and
cartons for liquid products. These products are manufactured at
two domestic mills and two mills located in Brazil; paper and
sold to marketsboard are converted into packaging products at
plants located in the eastern United States, Brazil and the
Czech Republic.  These products are sold primarilylocated in
the United States withother operations conductedadditional
markets located in Brazil, Europe, Asia and the Pacific Rim. In
Brazil, Rigesa is a major producer of paperboard and corrugated
packaging for the markets of that country. Operating results
for Rigesa are subject to the economic conditions in Brazil,
including its inflation and currency fluctuations.

The chemical segment manufactures products at four domestic
locations.  Major product groups are: activated carbon products
and services; printing ink resins and lignin-based surfactants;
tall oil fatty acid, rosin and derivative products.

The corporate and other segment includes the company's forestry
operations and income and expense items and activities not
directly associated with segment operations, including
corporate support staff services and related assets and
liabilities.

The segments are measured on operating profits before interest
expense, income taxes,minority interest, extraordinary items
and cumulative effect of accounting changes, except for Rigesa
which is included in the Packaging Segment,in the packaging
segment, whose operating profit includes interest income of
$13.2 million in 1999 (1998-$14.6 million, 1997-$10.3 million)
and interest expense of $4.6 million in 1999 (1998-$4.5
million, 1997-$6.1 million).  The segments follow the same
accounting principles described in the Summary of Significant
Accounting Policies.  Sales between the segments are recorded
primarily at market prices.  The restructuring charge following
the completion of the company's strategic review related to
paper, packaging, and chemicals was $21.2 million, $57.7 million
and $1.6 million, respectively.

No single customer accounts for 10% or more of consolidated
trade sales in 1999.  In 1998 and 1997, sales to a single
customer accounted for approximately 11% of consolidated sales
primarily from the company's packaging segment.

Total sales outside of the United States, including sales of
our foreign operating subsidiaries, accounted for
approximately $663,483,000 in 1999 (1998-$709,567,000, 1997-
$741,902,000).  Export sales from the United States amounted
to $504,480,000 in 1999 (1998-$499,792,000, 1997-$487,698,000).

Financial information by business segment follows:

<TABLE>

In millions
                                                                     Depreciation
                                        Inter-     Sales  Operating           and   Segment       Captial
                                Trade  segment     total     profit  amortization    assets  expenditures
<S>                          <C>        <C>     <C>          <C>           <C>     <C>             <C>
Year Ended October 31, 1999
Paper                        $1,005.1   $ 23.4  $1,028.5     $ 62.0        $100.6  $1,441.8        $ 60.0
  Packaging                   1,316.9      4.0   1,320.9      165.3         128.6   2,043.5          99.8
  Rigesa                        140.8        -     140.8       25.2           9.4     257.4          31.0
Packaging total               1,457.7      4.0   1,461.7      190.5         138.0   2,300.9         130.8
Chemical                        293.9     20.6     314.5       52.5          23.8     314.7          18.1
Corporate and other              45.1     35.7      80.8     [157.0]         18.1     839.3          23.4
Total                         2,801.8     83.7   2,885.5      148.0         280.5   4,896.7         232.3
Intersegment eliminations                [83.7]    [83.7]
Consolidated totals          $2,801.8   $    -  $2,801.8     $148.0        $280.5  $4,896.7        $232.3


Year Ended October 31, 1998
Paper                        $  972.9   $ 52.7  $1,025.6     $ 84.8        $100.1  $1,497.2        $157.8
  Packaging                   1,380.2      4.0   1,384.2      172.3         128.1   2,146.6         158.6
  Rigesa                        184.0        -     184.0       35.2          12.4     322.4          41.1
Packaging total               1,564.2      4.0   1,568.2      207.5         140.5   2,469.0         199.7
Chemical                        310.9     21.2     332.1       53.2          22.6     326.6          38.0
Corporate and other              37.9     34.8      72.7     [141.1]         17.8     715.9          24.2
Total                         2,885.9    112.7   2,998.6      204.4         281.0   5,008.7         419.7
Intersegment eliminations               [112.7]   [112.7]
Consolidated totals          $2,885.9   $    -  $2,885.9     $204.4        $281.0  $5,008.7        $419.7


Year Ended October 31, 1997
Paper                        $1,003.3   $ 52.2  $1,055.5     $ 82.0        $ 96.2  $1,430.7        $236.7
  Packaging                   1,415.6      4.5   1,420.1      180.7         125.2   2,128.0         214.4
  Rigesa                        220.5        -     220.5       47.9          11.9     301.4          30.7
Packaging total               1,636.1      4.5   1,640.6      228.6         137.1   2,429.4         245.1
Chemical                        304.5     19.3     323.8       49.1          17.1     304.6          97.6
Corporate and other              38.4     32.6      71.0     [113.1]         18.8     734.1          34.5
Total                         2,982.3    108.6   3,090.9      246.6         269.2   4,898.8         613.9
Intersegment eliminations               [108.6]   [108.6]
Consolidated totals          $2,982.3   $    -  $2,982.3     $246.6        $269.2  $4,898.8        $613.9


</TABLE>

P. Business Combination
In October 1999, Westvaco signed a definitive agreement
to acquire Temple-Inland's bleached paperboard mill in
Evadale, TX.  The company will pay $575 million for the
mill's fixed assets and approximately $50 million for
working capital.  The acquisition will be accounted for
as a purchase.  The transaction is scheduled to close in
December 1999.  In connection with this pending
acquisition, on November 5, 1999, the company issued
$400,000,000 in notes comprised of $200,000,000 of 6.85%
notes due November 15, 2004 and $200,000,000 of 7.10%
notes due November 15, 2009.

Q. Subsequent event [unaudited]
On November 29, 1999, Westvaco signed a definitive
agreement to acquire Mebane Packaging Group, Inc., a
leading supplier of packaging for pharmaceutical products
and personal care items.  The sale is scheduled to close
by the end of the first quarter of fiscal 2000.

R. Selected quarterly information [unaudited]

In thousands, except per share data

Quarter                          1999            1998            1997
Sales
  First                   $   650,715     $   702,113     $   736,355
  Second                      679,481         724,187         724,593
  Third                       700,202         727,826         738,227
  Fourth                      771,451         731,791         783,113
  Year                     $2,801,849      $2,885,917      $2,982,288

Gross profit
  First                   $   119,239     $   133,682     $   131,145
  Second                      127,052         139,135         134,929
  Third                       139,515         130,835         137,467
  Fourth                      176,907         139,644         157,545
  Year                    $   562,713     $   543,296     $   561,086

Net income
  First                  $     25,222    $     32,516     $    35,510
  Second                       27,295          34,606          37,940
  Third                        34,986          31,674          37,538
  Fourth                       23,673          33,217          51,712
  Year                    $   111,176     $   132,013     $   162,700

Net income per common share-basic
  First                        $  .25          $  .32          $  .35
  Second                          .27             .34             .37
  Third                           .35             .31             .37
  Fourth                          .24             .33             .51
  Year                          $1.11           $1.30           $1.60

Net income per common share-diluted
  First                        $  .25          $  .32          $  .35
  Second                          .27             .34             .37
  Third                           .35             .31             .37
  Fourth                          .24             .33             .50
  Year                          $1.11           $1.30           $1.58


Responsibility for financial statements

Management is responsible for the information and
representations in the consolidated financial statements
and related notes which appear on pages 21 through 33 as
well as all other financial information contained in
this report.  These financial statements were prepared
in accordance with generally accepted accounting
principles and by necessity include some amounts
determined using informed estimates and judgments.

 Management is responsible for establishing and
maintaining a system of internal control.  The company's
accounting systems include internal controls which
management believes provide reasonable assurance of the
reliability of its financial records and the proper
safeguarding and use of its assets.  In establishing the
basis for reasonable assurance, management balances the
cost of the internal controls with the benefits they
provide.  Additionally, it has long been the policy of
the company to conduct its business affairs in
accordance with high ethical standards, as set forth in
the Westvaco Code of Conduct.

 PricewaterhouseCoopers LLP, the company's independent
accountants, were engaged to audit the consolidated
financial statements and were responsible for conducting
their audit in accordance with generally accepted
auditing standards.  The appointment of
PricewaterhouseCoopers LLP as the company's independent
accountants by the Board of Directors, on the
recommendation of the Audit Committee, has been ratified
each year by the shareholders.  Their report immediately
follows this statement.

 The Audit Committee of the Board of Directors, composed
solely of nonmanagement directors, meets regularly with
the company's management, the internal audit manager and
the independent accountants to discuss accounting and
financial reporting matters and the nature, scope and
results of audits.  The Audit Committee meets with the
independent accountants both with and without the
presence of management.  The committee also meets with
the company's general counsel to review the company's
legal compliance program as well as significant
litigation issues.  The independent accountants and the
internal audit manager have full and free access to the
Audit Committee.



John A. Luke, Jr.
Chairman, President and
Chief Executive Officer


Karen R. Osar
Senior Vice President and Chief Financial Officer

November 17, 1999



Report of independent accountants

To the Board of Directors and
Shareholders of
Westvaco Corporation:

In our opinion, the consolidated financial statements appearing on
pages 21 through 33 of this report present fairly, in all material
respects, the financial position of Westvaco Corporation and its
subsidiaries at October 31, 1999 and 1998, and the results of
their operations and their cash flows for each of the three years
in the period ended October 31, 1999, in conformity with generally
accepted accounting principles.  These financial statements are
the responsibility of the company's management; our responsibility
is to express an opinion on these financial statements based on
our audits.  We conducted our audits of these statements in
accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management and evaluating the
overall financial statement presentation.  We believe that our
audits provide a reasonable basis for the opinion expressed above.




PricewaterhouseCoopers LLP

New York, New York
November 17, 1999



ELEVEN - YEAR COMPARISON

Year ended October 31     1999    1998    1997    1996    1995    1994

EARNINGS, in millions, except per share data
Sales                   $2,802  $2,886  $2,982  $3,045  $3,272  $2,607
Net income before
 extraordinary charge
 and cumulative effect
 of accounting changes     111     132     163     212     283     104

Net income                 111 a   132 b   163     212     281 c   104
  Net income per
   share - basic          1.11    1.30    1.60    2.09    2.78    1.03
  Net income per
   share - diluted        1.11    1.30    1.58    2.07    2.76    1.03
Depreciation and
 amortization              280     281     269     240     230     219


COMMON STOCK
Number of common
 shareholders           19,070  20,140  20,240  20,760  20,490  13,890
Weighted average
 number of shares
 outstanding [in
 millions]
  Basic                    100     101     102     102     101      101
  Diluted                  100     102     103     102     102      101

Cash dividends [in
 millions]                 $88     $89     $90     $90     $78      $74

Per share:
 Dividends                 .88     .88     .88     .88     .77  .73 1/3
 Book value              21.65   22.39   22.35   21.69   20.49    18.48



FINANCIAL POSITION, in millions
Working capital           $313    $272    $400    $297    $358     $269
Current ratio              1.7     1.6     2.0     1.7     1.8      1.7
Plant and
 timberlands, net       $3,581  $3,802  $3,684  $3,354  $3,140   $3,063
Total assets             4,897   5,009   4,899   4,437   4,253    3,983
Long-term
 obligations             1,502   1,526   1,513   1,153   1,147    1,234
Shareholders'
 equity                  2,171   2,246   2,279   2,210   2,081    1,862
Debt to total
 capital                    34%     34%     34%     29%     30%      34%


OPERATIONS
Primary production of
 paper,paperboard and
 market pulp [tons,
 in thousands]          2,992    3,028    3,058    3,001    3,105    2,848
New investment in
 plant and timberlands
 [in millions]           $232     $420     $614     $511     $309     $207
Acres of timberlands
 owned [in tons]        1,446    1,465    1,461    1,452    1,453    1,453
Employees              12,750   13,070   13,370   13,430   14,300   14,170



The following per share data is for basic and diluted:

 a 1999 results include an after-tax charge for restructuring of $49
   million, or $.49 per share, and a credit of $15 million, or $.15
   per share, for a release of deferred taxes.

 b 1998 results include an after-tax charge for restructuring of $3
   million, or $.03 per share.

 c 1995 results include an after-tax extraordinary charge of $2 million,
   or $.02 per share, for the extinguishment of debt.


Westvaco Corporation and consolidated subsidiary companies



ELEVEN - YEAR COMPARISON, continued

Year ended October 31           1993     1992     1991     1990     1989

EARNINGS, in millions, except per share data
Sales                         $2,345   $2,336   $2,301   $2,411   $2,284
Net income before
 extraordinary charge
 and cumulative effect
 of accounting changes            57      136      137      188      223

Net income                       104 d    136      137 e    188      223
 Net income per
  share - basic                 1.04     1.37     1.40     1.93     2.30
 Net income per
  share - diluted               1.04     1.36     1.39     1.92     2.28
Depreciation and
 amortization                    195      183      179      169      156


COMMON STOCK
Number of common
 shareholders                 14,570   14,970   15,020   15,630   15,530
Weighted average number
 of shares outstanding
 [in millions]
   Basic                         100       99       98       98       97
   Diluted                       101      100       99       98       98

Cash dividends
 [in millions]                   $73      $73      $70      $66      $61

Per share:
 Dividends                   .73 1/3  .73 1/3  .70 5/6  .67 1/2  .62 2/3
 Book value                    18.18    17.84    17.21    16.53    15.27



FINANCIAL POSITION, dollars in millions
Working capital                 $244     $319     $310     $370     $328
Current ratio                    1.7      1.9      2.0      2.2      2.1
Plant and
 timberlands, net             $3,078   $2,838   $2,675   $2,539   $2,240
Total assets                   3,928    3,704    3,462    3,332    2,961
Long-term obligations          1,258    1,055      970      961      768
Shareholders' equity           1,824    1,777    1,699    1,619    1,488
Debt to total
 capital                          35%      31%      31%      32%      29%

OPERATIONS
Primary production of paper,
  paperboard and market pulp
  [tons, in thousands]         2,626    2,595    2,587    2,512    2,499
New investment in plant
 and timberlands
 [in millions]                  $442     $352     $322     $472     $537
Acres of timberlands
 owned [in thousands]          1,462    1,468    1,483    1,487    1,467
Employees                     14,440   14,520   14,440   15,040   14,960



The following per share data is for basic and diluted:

  d 1993 results includes income of $55 million, or $.55 per share, from
    the cumlative effect of accounting changes, a provision of $12 million,
    or $.12 per share, for the impact of an increase in the federal income
    tax rate, an extraordinary charge of $8 million, or $.07 per share,
    for the extinguishment of high interest rate debt and a charge for
    restructuring of $26 million, or $.26 per share.

  e 1991 results include an after-tax charge for restructuring of $15
    million, or $.16 per share.


Westvaco Corporation and consolidated subsidiary companies