DOW JONES NEWSWIRES
Sealed Air Corp.'s (SEE) third-quarter profit soared on the absence year-ago restructuring charges, and earnings topped analysts' expectations amid higher margins.
As such, the maker of bubble wrap and plastic packaging sees 2009 earnings at the higher end of its forecast. But Chief Executive William V. Hickey said the company remains "cautious" on expected fourth-quarter sales, citing consumer-spending uncertainty ahead of the holiday shopping season.
Sealed Air also cut its 2009 capital-spending target to $80 million to $100 million from $100 million to $125 million.
Meanwhile, third-quarter earnings rose to $60.6 million, or 34 cents a share, from $9.2 million, or 5 cents a share, a year earlier. Excluding restructuring and other impacts, earnings rose to 38 cents from 28 cents.
Net sales fell 11% to $1.08 billion.
Analysts polled by Thomson Reuters were looking for earnings of 33 cents on revenue of $1.08 billion.
Gross margin rose to 28.8% from 24.1% on lower raw-material costs and Sealed Air's restructuring efforts.
At the food-packaging segment - the largest segment by sales - net sales fell 3% while profit surged 72% absent last year's record high resin costs. Protective packaging saw sales fall 19% as profit climbed 5%, helped by lower costs of petrochemical-based raw materials.
Shares of Sealed Air closed at $19.86 and didn't trade premarket. The stock is up one-third this year.
-By Mike Barris and Jenny Park, Dow Jones Newswires; 212-416-2330; mike.barris@dowjones.com