- Q3 2015 Adjusted EBITDA of $300 Million
or 17.2% of Net Sales
- Q3 2015 Adjusted EPS of $0.70; Reported
EPS of $0.42
- Company Updates 2015 Outlook for
Adjusted EBITDA, Adjusted EPS and Free Cash Flow
Sealed Air Corporation (NYSE:SEE) today announced financial
results for third quarter 2015. Commenting on these results, Jerome
A. Peribere, President and Chief Executive Officer, said, “We are
pleased with our third quarter results in light of currency
headwinds and ongoing global economic uncertainties, particularly
in emerging markets. Our unwavering dedication to our customers’
success and focus on delivering high quality earnings enabled us to
deliver year-over-year organic growth in sales and Adjusted EBITDA
and generate solid free cash flow. In the third quarter, on an
organic basis, net sales of $1.75 billion increased 2.7% and
Adjusted EBITDA of $300 million increased 15.6%. Adjusted EBITDA
margins of 17.2% expanded by 190 basis points with margin expansion
across all divisions. For the full year 2015, we now estimate Net
Sales of approximately $7.0 billion, Adjusted EBITDA of
approximately $1.165 billion and Free Cash Flow of approximately
$560 million. Given our free cash flow generation and share
repurchase program, our forecast for Adjusted EPS for the full year
2015 is approximately $2.32 as compared to prior guidance of $2.24
to $2.28."
Unless otherwise stated, all results compare third quarter 2015
results to third quarter 2014 results. Year-over-year financial
discussions present operating results as reported, and on an
organic or constant dollar basis. Constant dollar refers to unit
volume and price/mix performance and excludes the impact of
currency translation from all periods referenced. Organic refers to
unit volume and price/mix performance and excludes the impact of
currency translation and the results from the divestiture of the
North American foam trays and absorbent pads business
(“divestiture”), which was divested on April 1, 2015, from all
periods referenced. Additionally, non-U.S. GAAP adjusted financial
measures, such as Adjusted Earnings Before Interest Expense, Taxes,
Depreciation and Amortization (“Adjusted EBITDA”), Adjusted Net
Earnings, Adjusted Diluted Earnings Per Share (“Adjusted EPS”) and
Core Tax Rate, exclude the impact of special items, such as
restructuring charges, Venezuela remeasurement, cash-settled stock
appreciation rights (“SARs”) granted as part of the Diversey
acquisition and certain other infrequent or one-time items. Please
refer to the financial statements included with this press release
for a reconciliation of Non-U.S. GAAP to U.S. GAAP financial
measures.
Business and Financial
Highlights
- Food Care net sales of $836 million in
the third quarter decreased 15.0% as reported. Currency had a
negative impact on Food Care net sales of 12.8%, or $126 million,
while the divestiture had a negative impact of 5.3%, or $52
million. Net sales increased 3.1% on an organic basis, which
excludes the impact of currency translation and results from the
divestiture, with favorable price/mix of 2.8% on relatively flat
volume. Adjusted EBITDA was $168 million or 20.1% of net sales.
Adjusted EBITDA margins expanded 170 basis points compared to last
year primarily due to favorable mix and price/cost spread and cost
synergies, partially offset by unfavorable currency translation,
higher expenses and the divestiture.
- Diversey Care net sales of $502 million
in the third quarter decreased 8.9% as reported and increased 3.9%
on a constant dollar basis. Currency had a negative impact on
Diversey Care net sales of 12.8%, or $71 million, in the quarter.
Volume increased 2.5% and favorable price/mix was 1.4%. Diversey
Care’s Adjusted EBITDA was $66 million or 13.2% of net sales.
Adjusted EBITDA margins expanded 50 basis points compared to last
year as a result of higher volumes, cost synergies and cost
management, partially offset by unfavorable currency translation
and price/cost & spread.
- Product Care net sales of $385 million
in the third quarter decreased 8.6% as reported and 1.7% on a
constant dollar basis. Currency had a negative impact on Product
Care net sales of 6.9%, or $29 million. Favorable price/mix of 0.8%
was more than offset by a volume decline of 2.5%. Volume trends
were negatively impacted by continued rationalization efforts and
weakness in the manufacturing and electronics sectors. Adjusted
EBITDA was $81 million or 21.1% of net sales. Adjusted EBITDA
margins expanded 340 basis points compared to last year as a result
of favorable mix and price/cost spread and cost management,
partially offset by lower sales volumes and unfavorable currency
translation.
- In alignment with the Company’s
disciplined approach to portfolio management and focus on
innovation, Sealed Air recently announced the acquisition of B+
Equipment, a privately-held company headquartered in France, and
the sale of its European trays business. B+ Equipment designs,
manufactures and services automated packaging equipment for order
fulfillment operations. This acquisition is not material to Sealed
Air’s consolidated financial results. Sealed Air also announced it
had entered into an agreement to sell the European trays business
to Faerch Plast A/S, a European food packaging solutions provider.
This business is reported in Sealed Air’s Food Care division and
generated net sales of $71 million in 2014 and $44 million in the
nine months ended September 30, 2015. The transaction is expected
to close in the fourth quarter of 2015.
Third Quarter 2015
Summary
Third quarter 2015 net sales of $1.75 billion decreased 11.6% on
a reported basis and was essentially unchanged on a constant dollar
basis. Currency had a negative impact on net sales of 11.7% or $230
million. Adjusting for currency translation and the divestiture,
net sales increased 2.7% on an organic basis. Favorable price/mix
was 2.1% on higher volumes of 0.6%. Europe, Middle East and Africa
was the fastest growing region, increasing net sales by 4.2% on a
constant dollar basis. Latin America and Asia Pacific delivered
constant dollar net sales growth of 3.1% and 2.7%, respectively. On
an organic basis, North America delivered 1.2% net sales
growth.
Third quarter 2015 net earnings on a reported basis were $87
million, or $0.42 per diluted share as compared to $61 million, or
$0.28 per diluted share in the third quarter 2014. Net earnings in
the third quarter of 2015 included $57 million of special items,
primarily consisting of restructuring and other associated costs,
as well as a tax reserve recorded in relation to the tax refund
received on the Settlement agreement, partially offset by the
release of certain tax reserves recorded at the time of the
Diversey Holdings, Inc. acquisition, for which the statute of
limitations has expired. Net earnings in the third quarter of 2014
included $51 million of special items, primarily consisting of
restructuring and other associated costs, and loss on debt
redemption and refinancing activities.
Adjusted EPS was $0.70 for the third quarter 2015. This compares
to Adjusted EPS of $0.53 in the third quarter 2014. The Core Tax
Rate was 18.8% in the third quarter 2015, compared to 28.0% in the
third quarter 2014. The reduction in the Core Tax Rate was
attributable to the recording of net foreign tax credits that were
previously deemed not recognizable. During the third quarter 2015,
the Company repurchased approximately 11.3 million shares for
approximately $576 million. Year-to-date through October 23, 2015,
the Company has repurchased 14.5 million shares for approximately
$726 million.
Adjusted EBITDA for the third quarter 2015 was $300.0 million,
or 17.2% of net sales, compared to $302.3 million, or 15.3% of net
sales, in third quarter 2014. Currency had a negative impact on
Adjusted EBITDA of $39 million. Adjusted EBITDA margins expanded
190 basis points compared to last year. The year-over-year margin
increase was primarily attributable to favorable mix and price/cost
spread, cost synergies, partially offset by unfavorable currency
translation and the impact of the divestiture.
Cash Flow and Net Debt
Cash flow provided by operating activities in the nine months
ended September 30, 2015 was $679 million. In March 2015, the
Company received a tax refund of $235 million related to the
payment of funds in connection with the Settlement agreement (as
defined in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2014). Excluding the tax refund, cash flow
provided by operating activities in the nine months ended September
30, 2015 was $444 million, which is net of $72 million of
restructuring and $20 million of SARs payments. This compares with
cash used by operating activities of $465 million in the nine
months ended 2014, which is net of $76 million of restructuring,
$18 million of SARs payments and $930 million related to the
Settlement agreement. Capital expenditures were $112 million in the
nine months ended September 30, 2015 compared to $94 million in the
nine months ended September 30, 2014.
Free Cash Flow, defined as net cash used in operating activities
less capital expenditures, was an inflow of $331 million in the
nine months ended September 30, 2015, compared with $371 million in
the nine months ended September 30, 2014, excluding the Settlement
agreement. The year-over-year decline was attributable to
unfavorable currency impact, changes in working capital and other
assets and liabilities, and higher capital expenditures, partially
offset by lower interest payments and higher earnings.
Compared to December 31, 2014, the Company’s net debt increased
$224 million to $4.3 billion as of September 30, 2015. This
increase was primarily a result of amounts paid for share
repurchases and dividends, partially offset by cash reflecting the
tax refund related to the Settlement agreement payment and cash
generated from operating activities.
Updated Outlook for Full Year
2015
Consistent with the presentation of the Company’s outlook last
quarter, the forecast provided below includes one quarter of
financial results from North America trays and pads business, which
closed on April 1, 2015.
The Company estimates net sales to be approximately $7.0 billion
for the full year 2015, which assumes an unfavorable impact of
approximately 10% from foreign currency translation. Excluding the
impact of foreign currency translation and the impact of the
divestiture, net sales are expected to increase approximately 3% on
an organic basis.
Adjusted EBITDA is estimated to be approximately $1.165 billion,
which reflects the divestiture and includes approximately $125
million of unfavorable currency translation.
The Company is increasing its forecast for Adjusted EPS to
approximately $2.32 from its previously provided outlook in the
range of $2.24 to $2.28. The Adjusted EPS increase reflects share
repurchases through October 23, 2015. Adjusted EPS guidance
excludes the impact of special items. The Company’s expected Core
Tax Rate for 2015 of approximately 25% is unchanged from prior
forecast.
Free Cash Flow is expected to be approximately $560 million as
compared to previously provided guidance of $585 million. The
reduction is primarily related to an increase in working capital,
partially offset by lower capital expenditures and cash
restructuring payments. The Company anticipates capital
expenditures of approximately $190 million and cash restructuring
payments of approximately $110 million. This outlook excludes the
tax refund of approximately $235 million received in March 2015
related to the Settlement agreement payment.
Conference Call
Information
Date:
Tuesday, October 27, 2015
Time:
10:00am (ET)
Webcast:
www.sealedair.com in the Investor Relations section
Conference Dial
In:
(888) 679-8034 (domestic) (617) 213-4847 (international)
Participant
Code:
42949172
Conference Call
Replay Information
Dates:
Tuesday, October 27, 2015 starting at 2:00pm (ET) through Tuesday,
November 3, 2015 at 11:59pm (ET)
Webcast:
www.sealedair.com in the Investor Relations section
Conference Dial
In:
(888) 286-8010 (domestic) (617) 801-6888 (international)
Participant
Code:
17789295
Business
Sealed Air Corporation creates a world that feels, tastes and
works better. In 2014, the Company generated revenue of
approximately $7.8 billion by helping our customers achieve their
sustainability goals in the face of today’s biggest social and
environmental challenges. Our portfolio of widely recognized
brands, including Cryovac® brand food packaging solutions, Bubble
Wrap® brand cushioning and Diversey® cleaning and hygiene
solutions, enables a safer and less wasteful food supply chain,
protects valuable goods shipped around the world, and improves
health through clean environments. Sealed Air has approximately
24,000 employees who serve customers in 175 countries. To learn
more, visit www.sealedair.com.
Website Information
We routinely post important information for investors on our
website, www.sealedair.com, in the "Investor Relations" section. We
use this website as a means of disclosing material, non-public
information and for complying with our disclosure obligations under
Regulation FD. Accordingly, investors should monitor the Investor
Relations section of our website, in addition to following our
press releases, SEC filings, public conference calls, presentations
and webcasts. The information contained on, or that may be accessed
through, our website is not incorporated by reference into, and is
not a part of, this document.
Non-U.S. GAAP
Information
In this press release and supplement, we have included several
non-U.S. GAAP financial measures, including Adjusted Net Earnings
and EPS, net sales on a “constant dollar” or “organic” basis,
Adjusted Gross Profit, Adjusted Operating Profit, Free Cash Flow,
Adjusted EBITDA and Core Tax Rate, as our management believes these
measures are useful to investors. We present results and guidance,
adjusted to exclude the effects of certain specified items
(“special items”) and their related tax impact that would otherwise
be included under U.S. GAAP, to aid in comparisons with other
periods or prior guidance. In addition, non-U.S. GAAP measures are
used by management to review and analyze our operating performance
and, along with other data, as internal measures for setting annual
budgets and forecasts, assessing financial performance, providing
guidance and comparing our financial performance with our peers and
may also be used for purposes of determining incentive
compensation. The non-U.S. GAAP information has limitations as an
analytical tool and should not be considered in isolation from or
as a substitute for U.S. GAAP information. It does not purport to
represent any similarly titled U.S. GAAP information and is not an
indicator of our performance under U.S. GAAP. Non-U.S. GAAP
financial measures that we present may not be comparable with
similarly titled measures used by others. Investors are cautioned
against placing undue reliance on these non-U.S. GAAP measures. For
a reconciliation of these non-U.S. GAAP measures to U.S. GAAP and
other important information on our use of non-U.S. GAAP financial
measures, see the attached supplementary information entitled
“Condensed Consolidated Statements of Cash Flows” (under the
section entitled “Non-U.S. GAAP Free Cash Flow”), “Reconciliation
of U.S. GAAP Condensed Consolidated Statements of Operations to
Non-U.S. GAAP Adjusted Condensed Consolidated Statements of
Operations and Non-U.S. GAAP Adjusted EBITDA,” “Segment
Information,” “Reconciliation of Non-U.S. GAAP Total Company
Adjusted EBITDA to U.S. GAAP Net Earnings from Continuing
Operations,” “Components of Change in Net Sales by Segment,” and
“Components of Changes in Net Sales by Region.” Information
reconciling forward-looking non-U.S. GAAP measures to U.S. GAAP
measures is not available without unreasonable effort.
Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 concerning our business, consolidated
financial condition and results of operations. Forward-looking
statements are subject to risks and uncertainties, many of which
are outside our control, which could cause actual results to differ
materially from these statements. Therefore, you should not rely on
any of these forward-looking statements. Forward-looking statements
can be identified by such words as “anticipates,” “believes,”
“plan,” “assumes,” “could,” “should,” “estimates,” “expects,”
“intends,” “potential,” “seek,” “predict,” “may,” “will” and
similar references to future periods. All statements other than
statements of historical facts included in this press release
regarding our strategies, prospects, financial condition,
operations, costs, plans and objectives are forward-looking
statements. Examples of forward-looking statements include, among
others, statements we make regarding expected future operating
results, expectations regarding the results of restructuring and
other programs, anticipated levels of capital expenditures and
expectations of the effect on our financial condition of claims,
litigation, environmental costs, contingent liabilities and
governmental and regulatory investigations and proceedings. The
following are important factors that we believe could cause actual
results to differ materially from those in our forward-looking
statements: the tax benefits associated with the Settlement
agreement (as defined in our 2014 Annual Report on Form 10-K),
global economic and political conditions, changes in our credit
ratings, changes in raw material pricing and availability, changes
in energy costs, competitive conditions, success of our
restructuring activities, currency translation and devaluation
effects, the success of our financial growth, profitability, cash
generation and manufacturing strategies and our cost reduction and
productivity efforts, the effects of animal and food-related health
issues, pandemics, consumer preferences, environmental matters,
regulatory actions and legal matters, and the other information
referenced in the “Risk Factors” section appearing in our most
recent Annual Report on Form 10-K, as filed with the Securities and
Exchange Commission, and as revised and updated by our Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. Any
forward-looking statement made by us is based only on information
currently available to us and speaks only as of the date on which
it is made. We undertake no obligation to publicly update any
forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise.
SEALED AIR CORPORATION SUPPLEMENTARY
INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(1)
(Unaudited) (In millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30, 2015
2014 2015 2014 Revised(2)
Revised(2)
Net sales $ 1,746.2 $
1,975.5 $ 5,277.6 $ 5,776.8 Cost
of sales 1,109.6 1,279.4 3,327.6
3,761.5
Gross profit 636.6 696.1
1,950.0 2,015.3 As a % of total net sales 36.5 % 35.2
% 36.9 % 34.9 % Selling, general and administrative expenses 400.6
468.8 1,243.7 1,377.8 As a % of total net sales 22.9 % 23.7 % 23.6
% 23.9 % Amortization expense of intangible assets acquired 21.8
30.4 67.4 92.8 Stock appreciation rights (benefit) expense(3) (0.4
) 1.0 4.1 3.2 Restructuring and other charges 38.4
11.4 68.0 31.6
Operating profit 176.2
184.5 566.8 509.9 Interest expense (54.8 )
(69.7 ) (172.3 ) (222.1 ) Impairments of equity method investment —
— — (5.7 ) Foreign currency exchange (loss) gain related to
Venezuelan subsidiaries(4) (1.0 ) (4.1 ) (30.7 ) (18.9 ) Gain from
Claims Settlement(5) — — — 21.1 Gain (Loss) on debt redemption and
refinancing activities(6) 0.6 (17.7 ) (110.7 ) (18.5 ) Gain (Loss)
on sale of business(7) (0.5 ) — 28.7 — Other income (expense), net
5.5 4.5 18.4 5.8
Earnings before
income tax provision 126.0 97.5 300.2
271.6 Income tax provision
39.4 36.7
88.3 79.8 Effective income tax rate 31.3 %
37.6 % 29.4 % 29.4 %
Net earnings available to common
stockholders $ 86.6 $ 60.8 $
211.9 $ 191.8 Net earnings per common
share(8): Basic : $ 0.43
$ 0.29 $ 1.02 $ 0.91
Diluted: 0.42 0.28
1.01 0.89 Dividends per common share
$ 0.13 $ 0.13 $ 0.39
$ 0.39 Weighted average number of common shares
outstanding: Basic 202.9
210.4 206.7 210.2 Diluted
205.8 213.5 209.5
215.3
_______________
(1) The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission.
(2) During the fourth quarter of 2014, we changed the method of
valuing our inventories that used the Last In First Out (“LIFO”)
method to the First In First Out (“FIFO”) method, so that all of
our inventories are now valued at FIFO. We applied this change in
accounting principle retrospectively. Accordingly all previously
reported financial information has been revised. The impact of the
change on net earnings was not material.
(3) The remaining amount of unvested cash-settled stock
appreciation rights (“SARs”) fully vested March 31, 2015. However,
we will continue to incur expense related to these SARs until the
last expiration date of these awards (March 2021). The amount of
related future expense will fluctuate based on exercise and
forfeiture activity and changes in the assumptions used in the
valuation model, including the price of Sealed Air common
stock.
(4) Based on changes to the Venezuelan currency exchange rate
mechanisms, in the first quarter of 2014, we changed the exchange
rate we used to remeasure our Venezuelan subsidiaries’ financial
statements into U.S. dollars. As a result, as of September 30, 2014
our excess cash position in our Venezuelan subsidiaries was
remeasured at the SICAD 2 rate resulting in a $4 million and $19
million loss for the three and nine months ended September 30,
2014. As of September 30, 2015, based on further changes in the
Venezuelan exchange rate mechanisms and our specific facts and
circumstances, we changed the rate used to remeasure all of our
Bolivar denominated net monetary assets to the SIMADI rate of
199.4204. As a result of the change, we recorded a remeasurement
loss of $1 million and $31 million in the three and nine months
ended September 30, 2015, respectively.
(5) As previously disclosed in our Quarterly Report on
Form 10-Q for the three months ended March 31, 2014, on
February 3, 2014 we funded the cash consideration
($930 million) and issued the shares reserved under the
Settlement agreement as defined therein. As a result, we recognized
a gain on Claims Settlement of $21 million, which primarily
consisted of the release of certain tax and other liabilities.
(6) In June 2015, we issued $400 million of 5.5% senior notes
due 2025 and €400 million of 4.5% senior notes due 2023 and used
the net proceeds of these notes to retire the existing $750 million
of 8.375% senior notes due 2021. The aggregate repurchase price was
$866 million, which primarily included the principle amount of $750
million, premium of $99 million and accrued interest of $17
million. We recognized a total net pre-tax loss of $111 million in
the three months ended June 30, 2015, which included the premiums
mentioned above. Also included in the loss on debt redemption was
$11 million of accelerated amortization of original non-lender fees
related to the 8.375% senior notes.
(7) In April 2015, we completed the sale of our North American
foam trays and absorbent pads business for a gain of $29
million.
(8) Net earnings per common share is calculated under the
two-class method. See our Annual Report on Form 10-K for period
ended December 31, 2014 for further details.
SEALED AIR CORPORATION
SUPPLEMENTARY INFORMATION
CONDENSED CONSOLIDATED BALANCE
SHEETS(1)
(Unaudited) (In millions) September 30,
December 31, 2015 2014 Assets
Current assets: Cash and cash equivalents $ 334.3 $ 322.6 Trade
receivables, net 898.6 1,002.2 Other receivables 183.0 404.0
Inventories 765.5 695.3 Assets held for sale(2) 5.5 69.3 Other
current assets 298.7 227.7
Total current
assets 2,485.6 2,721.1 Property and equipment,
net 905.9 970.6 Goodwill 2,917.0 2,998.6 Intangible assets, net
812.8 872.2 Other assets, net 465.0 479.2
Total
assets $ 7,586.3 $ 8,041.7
Liabilities and stockholders' equity Current liabilities:
Short-term borrowings $ 280.5 $ 130.4 Current portion of long-term
debt 34.7 1.1 Accounts payable 716.6 638.7 Liabilities held for
sale (2) — 6.1 Other current liabilities 951.4 954.6
Total current liabilities 1,983.2 1,730.9
Long-term debt, less current portion 4,334.9 4,282.5 Other
liabilities 826.2 865.5
Total liabilities
7,144.3 6,878.9 Stockholders' equity
442.0 1,162.8
Total liabilities and stockholders'
equity $ 7,586.3 $ 8,041.7
CALCULATION OF NET DEBT
(1)
September 30, December 31,
2015
2014 Short-term borrowings $ 280.5 $ 130.4
Current portion of long-term debt 34.7 1.1 Long-term debt, less
current portion 4,334.9 4,282.5 Total debt 4,650.1
4,414.0 Less: cash and cash equivalents (334.3 )
(322.6 )
Net debt $ 4,315.8 $
4,091.4
_______________
(1) The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission.
(2) In January 2015, we completed the sale relating to our
building located in Racine, Wisconsin. As of December 31, 2014, the
building and certain related assets were included in assets held
for sale. Accordingly, we transferred $26 million from assets
held for sale as of December 31, 2014. In addition, during the
second quarter we completed the sale of our North American foam
trays and absorbent pads business. During the first quarter of
2015, the assets and liabilities met the criteria of held for sale
classification. Accordingly, we had reclassified $42 million of
assets and $6 million of liabilities to held for sale as of
December 31, 2014.
SEALED AIR CORPORATION SUPPLEMENTARY
INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(1)
(Unaudited) (In millions) Nine Months Ended
September 30, 2015 2014 Revised(2)
Net earnings available to common stockholders $ 211.9 $ 191.8
Adjustments to reconcile net earnings to net cash provided by (used
in) operating
activities(3)(5)
356.1 342.1 Changes in: Trade receivables, net (45.0 ) (62.5 )
Inventories (127.7 ) (121.8 ) Accounts payable 115.0 159.1
Settlement agreement, and related items (4) 235.2 (929.7 ) Changes
in all other operating assets and liabilities (66.9 )
(43.8 )
Cash flow provided by (used in) operating activities
678.6 (464.8 ) Capital expenditures for
property and equipment (112.3 ) (93.8 ) Proceeds from sale of
business(5) 75.6 — Business acquired in purchase transactions, net
of cash and cash equivalents acquired (23.5 ) (3.6 ) Proceeds from
sales of property, equipment and other assets 32.4 8.7 Settlement
of foreign currency forward contracts 34.7 9.1
Cash flow provided by (used in) investing activities
6.9 (79.6 ) Net proceeds from
short-term borrowings and long-term debt 257.8 233.8 Repurchase of
common stock (685.7 ) (134.0 ) Payments for debt extinguishment
costs (108.3 ) (12.3 ) Dividends paid on common stock (81.2 ) (83.9
)
Acquisition of common stock for tax
withholding obligations under our Omnibus stock plan and
2005Contingent Stock Plan
(8.7 ) (2.9 )
Cash flow (used in) provided by
financing activities (626.1 ) 0.7
Effect of foreign currency exchange rates on cash and cash
equivalents (47.7 ) (28.0
) Cash and cash equivalents beginning of
period $ 322.6 $ 992.4 Net change
in cash and cash equivalents 11.7 (571.7 )
Cash
and cash equivalents end of period $ 334.3
$ 420.7 Non-U.S. GAAP Free Cash Flow:
Cash flow from operating activities(4) $ 678.6 $ (464.8 ) Capital
expenditures for property and equipment (112.3 )
(93.8 )
Free Cash Flow(6)
$ 566.3 $
(558.6 ) Settlement agreement and related items (4)
(235.2 ) 929.7
Free Cash Flow excluding Settlement
agreement and related items $ 331.1 $
371.1 Additional Cash Flow Information: Interest
payments, net of amounts capitalized(7) $ 169.1 $ 660.6 Income tax
payments $ 78.8 $ 65.8 SARs payments (less amounts included in
restructuring payments) $ 20.0 $ 18.0 Restructuring payments
(including associated costs) $ 71.7 $ 75.8
______________
(1) The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission.
(2) During the fourth quarter of 2014, we changed the method of
valuing our inventories that used the LIFO method to the FIFO
method, so that all of our inventories are now valued at FIFO. We
applied this change in accounting principle retrospectively.
Accordingly all previously reported financial information has been
revised. The impact of the change to net earnings was not material.
Certain other reclassifications have been made to prior year
numbers to conform to current year presentation.
(3) 2015 primarily consists of loss on bond redemption of $111
million, depreciation and amortization of $162 million, share-based
compensation expense of $49 million, and a remeasurement loss of
$31 million partially offset by a gain on sale of business of $(35)
million. 2014 primarily consists of depreciation and amortization
of $242 million, profit sharing expense of $30 million, loss on
debt redemption and refinancing activities of $19 million and the
development grant matter of $14 million and a remeasurement loss of
$19 million, partially offset by gain on Settlement agreement of
$(21) million.
(4) During the first quarter of 2015, the Company received the
tax refund of $235 million related to the Settlement agreement
payment. During the first quarter of 2014, we used
$930 million of cash to fund the cash portion of the
Settlement agreement and related accrued interest. To fund the cash
payment, we used $555 million of cash and cash equivalents and
utilized borrowings of $260 million from our revolving credit
facility and $115 million from our accounts receivable
securitization programs.
(5) During the second quarter of 2015, we completed the sale of
our North American foam trays and absorbent pads business for net
cash proceeds of $76 million, resulting in the recording of a $29
million gain.
(6) Free cash flow does not represent residual cash available
for discretionary expenditures, including mandatory debt servicing
requirements or non-discretionary expenditures that are not
deducted from this measure.
(7) Interest payments in 2014 include $417 million related to
the Settlement agreement.
SEALED
AIR CORPORATION SUPPLEMENTARY INFORMATION
RECONCILIATION OF U.S. GAAP CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS TO NON-U.S. GAAP ADJUSTED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND
NON-U.S. GAAP ADJUSTED
EBITDA(1)
(Unaudited) (In millions, except per share data)
Three Months Ended September 30,
2015
2014
U.S. GAAP As Reported
Less:Special
Items(2)
Non-U.S. GAAPAdjusted
U.S. GAAPAs Reported
Less:Special
Items(2)
Non-U.S. GAAPAdjusted
Revised(3) Revised(3)
Net sales $ 1,746.2
$ — $ 1,746.2 $ 1,975.5
$ — $ 1,975.5 Cost of sales
1,109.6 0.4 1,110.0
1,279.4 (1.7 ) 1,277.7
Gross
profit 636.6 (0.4 ) 636.2
696.1 1.7 697.8 As a % of total net sales 36.5
% 36.4 % 35.2 % 35.3 % Selling, general and administrative expenses
400.6 (14.9 ) 385.7 468.8 (22.3 ) 446.5 As a % of total net sales
22.9 % 22.1 % 23.7 % 22.6 % Amortization expense of intangible
assets acquired 21.8
— 21.8 30.4
— 30.4 Stock
appreciation rights (benefit) expense (0.4 ) 0.4
— 1.0 (1.0
)
— Restructuring and other charges 38.4
(38.4 ) — 11.4 (11.4 )
—
Operating profit 176.2 52.5
228.7 184.5 36.4 220.9 As a % of total
net sales 10.1 % 13.1 % 9.3 % 11.2 % Interest expense (54.8 ) —
(54.8 ) (69.7 ) — (69.7 ) Impairments of equity method investment —
— — — — Foreign currency exchange gain (loss) related to Venezuelan
subsidiaries (1.0 ) 1.0 — (4.1 ) 4.1 — Gain from Claims Settlement
— — — — — — Gain (Loss) on debt redemption and refinancing
activities 0.6 (0.6 ) — (17.7 ) 17.7 — Gain (Loss) on sale of
business (0.5 ) 0.5 — — — — Other income (expense), net 5.5
(3.0 ) 2.5 4.5
(0.1 ) 4.4
Earnings before income tax
provision 126.0 50.4 176.4 97.5
58.1 155.6 Income tax (benefit) provision
39.4 (6.2 ) 33.2
36.7 6.8 43.5
Effective income tax rate(4) 31.3 % 18.8 %
37.6 % 28.0 %
Net earnings available to
common stockholders $ 86.6 $
56.6 $ 143.2 $
60.8 $ 51.3 $
112.1 Net earnings per common
share(5): Diluted $ 0.42
$ 0.28 $ 0.70
$ 0.28 $ 0.25 $
0.53 Weighted average number of common
shares
outstanding:
Diluted 205.8 205.8
205.8 213.5
213.5 213.5 Non-U.S.
GAAP Adjusted EBITDA: Non-U.S. GAAP Adjusted Operating
Profit $ 228.7 $ 220.9 Other income
(expense), net 2.5 4.4 Depreciation and amortization(6) 68.7 77.3
Write down of non-strategic assets, included in depreciation and
amortization 0.1 (0.3 )
Non-U.S. GAAP
Adjusted EBITDA $ 300.0 $
302.3 As a % of total net sales 17.2 % 15.3 %
_____________
(1) The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission.
(2) Special items consist of certain one-time costs or
charges/credits that are included in our U.S. GAAP reported
results. These special items include restructuring and other
associated costs related to our previously announced Fusion program
(“Fusion”), Earnings Quality Improvement Program (“EQIP”) and the
Integration and Optimization Program (“IOP”) restructuring
programs, foreign currency exchange losses related to Venezuelan
subsidiaries, stock appreciation rights (“SARs”) expense, losses
recorded on debt redemption and refinancing activities, gain on
sale of business, income from sale of equity method investment, and
a tax reserve recorded in relation to the tax refund received on
the Settlement agreement, partially offset by the release of
certain tax reserves recorded at the time of the Diversey Holdings,
Inc. acquisition.
(3) During the fourth quarter of 2014, we changed the method of
valuing our inventories that used the LIFO method to the FIFO
method, so that all of our inventories are now valued at FIFO. We
applied this change in accounting principle retrospectively.
Accordingly all previously reported financial information has been
revised. The impact of the change to net earnings was not
material.
(4) Our Core Tax Rate is defined as the effective income tax
rate on Non-U.S. GAAP Adjusted Net Earnings.
(5) Net earnings per common share is calculated under two-class
method. See our Annual Report on Form 10-K for period ended
December 31, 2014 for further details.
(6) Depreciation and amortization includes:
Three Months Ended
September 30, 2015 2014
Depreciation of property, plant and equipment $ 31.0 $ 36.6
Amortization of intangible assets acquired 21.8 30.4 Amortization
of deferred share-based compensation 15.9 10.3
Total $ 68.7 $ 77.3
SEALED AIR CORPORATION SUPPLEMENTARY
INFORMATION RECONCILIATION OF U.S. GAAP CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS TO NON-U.S. GAAP
ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
NON-U.S. GAAP ADJUSTED EBITDA(1) (Unaudited)
(In millions, except per share data)
Nine Months Ended September
30, 2015 2014
U.S. GAAP As Reported
Less:Special
Items(4)
Non-U.S. GAAPAdjusted
U.S. GAAPAs Reported
Less:Special
Items(4)
Non-U.S. GAAPAdjusted
Revised(3) Revised(3)
Net sales $ 5,277.6 $ —
$ 5,277.6 $ 5,776.8 $ — $ 5,776.8 Cost
of sales 3,327.6 (2.1) 3,325.5 3,761.5 (8.1) 3,753.4
Gross
profit 1,950.0 2.1 1,952.1 2,015.3
8.1 2,023.4 As a % of total net sales 36.9% 37.0%
34.9% 35.0% Selling, general and administrative expenses(2) 1,243.7
(31.4) 1,212.3 1,377.8 (33.1) 1,344.7 As a % of total net sales
23.6% 23.0% 23.9% 23.3% Amortization expense of intangible assets
acquired 67.4
— 67.4 92.8
— 92.8 Stock appreciation
rights (benefit) expense 4.1 (4.1)
— 3.2 (3.2)
—
Restructuring and other charges 68.0 (68.0) — 31.6 (31.6) —
Operating profit 566.8 105.6 672.4
509.9 76.0 585.9 As a % of total net sales
10.7% 12.7% 8.8% 10.1% Interest expense (172.3) — (172.3) (222.1) —
(222.1) Impairments of equity method investment — — (5.7) 5.7 —
Foreign currency exchange loss related to Venezuelan subsidiaries
(30.7) 30.7 — (18.9) 18.9 — Gain from Claims Settlement — — — 21.1
(21.1) — Gain (Loss) on debt redemption and refinancing activities
(110.7) 110.7 — (18.5) 18.5 — Gain (Loss) on sale of business 28.7
(28.7) — — — — Other income (expense), net 18.4 (9.9) 8.5 5.8 3.6
9.4
Earnings before income tax provision 300.2
208.4 508.6 271.6 101.6 373.2
Income tax provision
88.3 35.3 123.6
79.8 20.4 100.2 Effective income tax rate(4)
29.4% 24.3% 29.4% 26.8%
Net earnings available to
common stockholders $ 211.9 173.1 $ 385.0
$ 191.8 $ 81.2 $ 273.0 Net earnings per
common share(5): Diluted: $ 1.01
$ 0.83 $ 1.84 $ 0.89 $ 0.38 $
1.27
Weighted average number of common
shares outstanding:
Diluted 209.5 209.5 209.5
215.3 215.3 215.3 Non-U.S. GAAP
Adjusted EBITDA: Non-U.S. GAAP Adjusted Operating Profit
$ 672.4 $ 585.9 Other income (expense), net 8.5 9.4
Depreciation and amortization(6) 211.1 241.7 Write down of
non-strategic assets, included in depreciation and amortization
(0.2) (0.2)
Non-U.S. GAAP Adjusted EBITDA $ 891.8
$ 836.8 As a % of total net sales 16.9% 14.5%
__________________
(1) The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission.
(2) Special items consist of certain one-time costs or
charges/credits that are included in our U.S. GAAP reported
results. These special items include restructuring and other
associated costs related to our previously announced Fusion program
(“Fusion”), Earnings Quality Improvement Program (“EQIP”) and the
Integration and Optimization Program (“IOP”) restructuring
programs, foreign currency exchange losses related to Venezuelan
subsidiaries, stock appreciation rights (“SARs”) expense, and
losses recorded on debt redemption and refinancing activities, gain
on sale of business, income from sale of equity method investment,
and a tax reserve recorded in relation to the tax refund received
on the Settlement agreement, partially offset by the release of
certain tax reserves recorded at the time of the Diversey Holdings,
Inc. acquisition.
(3) During the fourth quarter of 2014, we changed the method of
valuing our inventories that used the LIFO method to the FIFO
method, so that all of our inventories are now valued at FIFO. We
applied this change in accounting principle retrospectively.
Accordingly all previously reported financial information has been
revised. The impact of the change to net earnings was not
material.
(4) Our Core Tax Rate is defined as the effective income tax
rate on Non-U.S. GAAP Adjusted Net Earnings.
(5) Net earnings per common share is calculated under two-class
method. See our Annual Report on Form 10-K for period ended
December 31, 2014 for further details.
(6) Depreciation and amortization includes:
Nine Months Ended
September 30, 2015 2014
Depreciation of property, plant and equipment $ 94.6 $ 112.2
Amortization of intangible assets acquired 67.4 92.8 Amortization
of deferred share-based compensation 49.1 36.7
Total $ 211.1 $ 241.7
SEALED AIR
CORPORATION SUPPLEMENTARY INFORMATION
SEGMENT INFORMATION(1)
(Unaudited) (In millions) Three Months
Ended Nine Months Ended September 30, %
September 30, % 2015 2014
Change 2015 2014 Change
Net Sales: Food Care $ 836.4 $ 983.5 (15.0 ) %
$ 2,562.8 $ 2,849.9 (10.1 ) % As a % of Total Company net sales
47.9 % 49.8 % 48.6 % 49.3 % Diversey Care 501.8 550.8 (8.9 ) %
1,504.7 1,637.2 (8.1 ) % As a % of Total Company net sales 28.7 %
27.9 % 28.5 % 28.3 % Product Care 384.7 420.7 (8.6 ) % 1,142.8
1,223.2 (6.6 ) % As a % of Total Company net sales 22.0 %
21.3 % 21.7 % 21.2 %
Total Reportable Segments Net Sales 1,722.9
1,955.0 (11.9 ) %
5,210.3
5,710.3 (8.8 ) % Other 23.3 20.5
13.7 % 67.3 66.5 1.2 %
Total Company
Net Sales $ 1,746.2 $ 1,975.5
(11.6 ) %
$ 5,277.6 $
5,776.8 (8.6 ) %
Three Months Ended Nine
Months Ended September 30, % September 30,
% 2015 2014 Change
2015 2014 Change Revised(2)
Revised(2)
Adjusted EBITDA: Food Care $ 168.4 $ 181.2 (7.1 )
% $ 532.6 $ 498.0 6.9 % Adjusted EBITDA Margin 20.1 % 18.4 % 20.8 %
17.5 % Diversey Care 66.4 69.9 (5.0 ) % 176.5 186.7 (5.5 ) %
Adjusted EBITDA Margin 13.2 % 12.7 % 11.7 % 11.4 % Product Care
81.0 74.4 8.9 % 235.6 215.5 9.3 % Adjusted EBITDA Margin
21.1 % 17.7 % 20.6 % 17.6 %
Total Reportable Segments Adjusted
EBITDA
315.8 325.5 (3.0 ) %
944.7
900.2 4.9 % Other (15.8 ) (23.2 )
(31.9 ) % (52.9 ) (63.4 ) (16.6 ) %
Non-U.S. GAAP Total Company
Adjusted EBITDA
$ 300.0 $ 302.3 (0.8
) %
$ 891.8 $ 836.8
6.6 % Adjusted EBITDA Margin 17.2 % 15.3 % 16.9 % 14.5 %
_______________
(1) The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission.
(2) During the fourth quarter of 2014, we changed the method of
valuing our inventories that used the LIFO method to the FIFO
method, so that all of our inventories are now valued at FIFO. We
applied this change in accounting principle retrospectively.
Accordingly all previously reported financial information has been
revised. The impact of the change to net earnings was not
material.
SEALED AIR CORPORATION SEGMENT
INFORMATION – CONTINUED
SUPPLEMENTARY
INFORMATION(1)
RECONCILIATION OF NON-U.S. GAAP TOTAL COMPANY ADJUSTED EBITDA
TO U.S. GAAP NET EARNINGS FROM CONTINUING OPERATIONS
(Unaudited) (In millions) Three Months
Ended Nine Months Ended September 30,
September 30, 2015 2014
2015 2014 Revised(2) Revised(2)
Non-U.S. GAAP Total Company Adjusted EBITDA $
300.0 $ 302.3 $ 891.8 $
836.8 Depreciation and amortization (3) (68.7 ) (77.3 )
(211.1 ) (241.7 ) Special items(4):
Accelerated depreciation of non-strategic
assets related torestructuring programs
(0.1 ) 0.3 0.2 0.2 Restructuring and other charges(5) (38.4 ) (11.4
) (68.0 ) (31.6 )
Other restructuring associated costs
included in cost ofsales and selling, general and administrative
expenses
(12.5 ) (7.7 ) (31.8 ) (22.7 )
Development grant matter included in
selling, general andadministrative expenses(6)
— (14.0 ) — (14.0 ) SARs 0.4 (1.0 ) (4.1 ) (3.2 ) Impairments of
equity method investment — — — (5.7 )
Foreign currency exchange (loss) gains
related toVenezuelan subsidiaries
(1.0 ) (4.1 ) (30.7 ) (18.9 ) Loss on debt redemption and
refinancing activities 0.6 (17.7 ) (110.7 ) (18.5 ) Gain from
Claims Settlement in 2014 and related costs — — — 21.1
Gain from sale of North American foam
trays and absorbent padsbusiness
(0.5 ) — 28.7 —
Non-operating charge for contingent
guarantee included in otherincome (expense), net
— (2.5 ) — (2.5 ) Income from sale of equity method investment — —
— — Other 1.0 0.3 8.2 (5.6 ) Interest expense (54.8 ) (69.7 )
(172.3 ) (222.1 ) Income tax (benefit) provision 39.4
36.7 88.3 79.8
U.S. GAAP net earnings available to
common stockholders $ 86.6 $ 60.8
$ 211.9 $ 191.8
_____________
(1) The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Annual Report on Form 10-Q with the Securities
and Exchange Commission.
(2) During the fourth quarter of 2014, we changed the method of
valuing our inventories that used the LIFO method to the FIFO
method, so that all of our inventories are now valued at FIFO. We
applied this change in accounting principle retrospectively.
Accordingly all previously reported financial information has been
revised. The impact of the change to net earnings was not
material.
(3) Depreciation and amortization by segment is as follows:
Three Months Ended Nine Months Ended September
30, September 30, 2015
2014 2015 2014
Food Care $ 26.6 $ 30.6 $ 81.8 $ 92.1 Diversey Care 25.7 31.9 77.0
98.9 Product Care 9.3 9.8 28.8 30.7
Total reportable segments 61.6 72.3
187.6 221.7 Other 7.1 5.0 23.5
20.0
Total Company depreciation and amortization
$ 68.7 $ 77.3 $ 211.1
$ 241.7
(4) Includes items we consider unusual or special items. See
Note 2 of “Reconciliation of U.S. GAAP Condensed Consolidated
Statements of Operations to Non-U.S. GAAP Adjusted Condensed
Consolidated Statements of Operations and Non-U.S. GAAP Adjusted
EBITDA,” for further information.
(5) Restructuring and other charges by segment is as
follows:
Three Months Ended
Nine Months Ended September 30, September
30, 2015 2014 2015
2014 Food Care $ 15.4 $ 1.8 $
29.5 $ 12.9 Diversey Care 16.0 8.2 25.5 12.0 Product Care
6.7 1.3 12.6 6.3
Total reportable
segments 38.1 11.3 67.6 31.2 Other
0.3 0.1 0.4 0.4
Total Company
restructuring and other charges $ 38.4 $
11.4 $ 68.0 $ 31.6
SEALED AIR CORPORATION SUPPLEMENTARY
INFORMATION
COMPONENTS OF CHANGE IN NET SALES BY
SEGMENT(1)
(Unaudited) (In millions) Three Months
Ended September 30, Food Care Diversey
Care Product Care
Other Total
Company
2014 Net Sales $ 983.5 $ 550.8 $ 420.7
$ 20.5 $ 1,975.5
Volume - Units 3.2 0.3 % 13.9 2.5 % (10.5 ) (2.5 ) % 4.3 21.0 %
10.9 0.6 % Price/mix (2) 27.8 2.8 % 7.9 1.4 % 3.4 0.8 % 2.5 12.2 %
41.6 2.1 % Divestiture (52.2 ) (5.3 ) % —
— % — — % — — % (52.2 ) (2.6 ) %
Total constant dollar change
(Non-U.S.GAAP)(3)
(21.2 ) (2.2 ) % 21.8
3.9 % (7.1 ) (1.7 )
% 6.8 33.2 % 0.3 0.1
% Foreign currency translation (125.9 ) (12.8
) % (70.8 ) (12.8 ) % (28.9 ) (6.9 ) %
(4.0 ) (19.5 ) % (229.6 ) (11.7 ) %
Total change (U.S. GAAP) (147.1 )
(15.0 ) % (49.0 )
(8.9 ) % (36.0 )
(8.6 ) % 2.8
13.7 % (229.3 )
(11.6 ) %
2015 Net Sales $
836.4 $ 501.8 $ 384.7 $
23.3 $ 1,746.2
Nine Months Ended September 30, Food Care
Diversey Care Product Care
Other Total 2014 Net Sales $
2,849.9 $ 1,637.2 $
1,223.2 $ 66.5 $ 5,776.8
Volume - Units 40.7 1.4 % 22.5 1.4 % (26.6 )
(2.2 ) % 2.8 4.2 % 39.4 0.7 % Price/mix (2) 84.2 3.0 % 28.9 1.8 %
22.7 1.9 % 7.8 11.7 % 143.6 2.5 % Divestiture (108.1 )
(3.8 ) % — — % — — % — —
% (108.1 ) (1.9 ) %
Total constant dollar change
(Non-U.S.GAAP)(3)
16.8 0.6 % 51.4 3.2 %
(3.9 ) (0.3 ) % 10.6
15.9 % 74.9 1.3 % Foreign
currency translation (303.9 ) (10.7 ) % (183.9
) (11.3 ) % (76.5 ) (6.3 ) % (9.8 )
(14.7 ) % (574.1 ) (9.9 ) %
Total change (U.S.
GAAP) (287.1 ) (10.1
) % (132.5 ) (8.1
) % (80.4 ) (6.6 )
% 0.8 1.2 %
(499.2 ) (8.6 ) %
2015 Net Sales $ 2,562.8 $
1,504.7 $ 1,142.8 $ 67.3
$ 5,277.6
________________________
(1) The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission.
(2) Our price/mix reported above includes the net impact of our
pricing actions and rebates as well as the period-to-period change
in the mix of products sold. Also included in our reported
price/mix is the net effect of some of our customers purchasing our
products in non-U.S. dollar or euro denominated countries at
selling prices denominated in U.S. dollars or euros. This
primarily arises when we export products from the U.S. and
euro-zone countries.
(3) Changes in these items excluding the impact of foreign
currency translation are non-U.S. GAAP financial measures. Since we
are a U.S. domiciled company, we translate our
foreign-currency-denominated financial results into
U.S. dollars. Due to changes in the value of foreign
currencies relative to the U.S. dollar, translating our
financial results from foreign currencies to U.S. dollars may
result in a favorable or unfavorable impact. It is important that
we take into account the effects of foreign currency translation
when we view our results and plan our strategies. Nonetheless, we
cannot control changes in foreign currency exchange rates.
Consequently, when our management looks at our financial results to
measure the core performance of our business, we exclude the impact
of foreign currency translation by translating our current period
results at prior period foreign currency exchange rates. We also
may exclude the impact of foreign currency translation when making
incentive compensation determinations. As a result, our management
believes that these presentations are useful internally and may be
useful to our investors.
SEALED AIR CORPORATION SUPPLEMENTARY
INFORMATION
COMPONENTS OF CHANGE IN NET SALES BY
REGION(1)(2)
(Unaudited) (In millions) Three Months
Ended September 30, North America
EMEA(3) Latin America
APAC(4) Total 2014 Net
Sales(1) $ 781.6 $ 702.1 $ 210.4
$ 281.4 $ 1,975.5 Volume
- Units 0.4 0.1 % 22.9 3.3 % (18.4 ) (8.7 ) % 6.0 2.1 % 10.9 0.6 %
Price/mix 8.8 1.1 % 6.3 0.9 % 24.8 11.8 % 1.7 0.6 % 41.6 2.1 %
Divestiture (52.2 ) (6.7 ) % — — %
— — % — — % (52.2 ) (2.6
) %
Total constant dollar change
(Non-U.S.GAAP)
(43.0 ) (5.5 ) % 29.2
4.2 % 6.4 3.1 % 7.7
2.7 % 0.3 0.1 % Foreign currency
translation (12.2 ) (1.6 ) % (125.4 )
(17.9 ) % (51.0 ) (24.2 ) % (41.0 )
(14.6 ) % (229.6 ) (11.7 ) %
Total change (U.S.
GAAP) (55.2 ) (7.1 )
% (96.2 ) (13.7 )
% (44.6 ) (21.1 )
% (33.3 ) (11.9 )
% (229.3 ) (11.6 )
%
2015 Net Sales $ 726.4 $
605.9 $ 165.8 $ 248.1 $
1,746.2 Nine Months Ended
September 30, North America
EMEA(3) Latin America
APAC(4) Total 2014 Net
Sales $ 2,286.5 $ 2,091.7 $ 597.7
$ 800.9 $ 5,776.8
Volume - Units 13.1 0.6 % 40.9 2.0 % (33.7 ) (5.6 ) % 19.1 2.4 %
39.4 0.7 % Price/mix 37.3 1.6 % 29.3 1.4 % 70.1 11.7 % 6.9 0.9 %
143.6 2.5 % Divestiture (108.1 ) (4.7 ) —
— % — — % — — % (108.1 )
(1.9 ) %
Total constant dollar change
(Non-U.S.GAAP)
(57.7 ) (2.5 ) % 70.2
3.4 % 36.4 6.1 % 26.0
3.3 % 74.9 1.3 % Foreign
currency translation (26.3 ) (1.1 ) % (358.1 )
(17.2 ) % (109.4 ) (18.3 ) % (80.3 )
(10.0 ) % (574.1 ) (9.9 ) %
Total change
(U.S. GAAP) (84.0 ) (3.6
) % (287.9 ) (13.8
) % (73.0 ) (12.2
) % (54.3 ) (6.7
) % (499.2 ) (8.6
) %
2015 Net Sales $ 2,202.5
$ 1,803.8 $ 524.7 $ 746.6
$ 5,277.6
(1) The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission.
(2) During the second quarter of 2015, the Company underwent a
reorganization of its Asia, Middle East, Africa and Turkey region
(AMAT). This reorganization involved the transition of the AMAT
region to an Asia Pacific region (APAC) and moving the Middle East,
Africa and Turkey countries into the Company’s existing European
regional organization (EMEA).
(3) EMEA consists of Europe, Middle East, Africa and Turkey.
(4) APAC refers collectively to our Asia Pacific region. This
consists of i) Greater China, ii) India/Southeast Asia and iii)
Australia, New Zealand, Japan and Korea.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151027005665/en/
Sealed Air CorporationInvestors:Lori Chaitman,
201-703-4161orMedia:Ken Aurichio, 201-703-4164
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