Sealed Air's Profit Jumps, but Revenue Outlook Is Soft
February 10 2016 - 8:50AM
Dow Jones News
Sealed Air Corp. on Wednesday gave a soft revenue outlook for
2016 as currency swings continue to hurt results, though the maker
of Bubble Wrap cushioning reported stronger-than-expected earnings
for its fourth quarter.
Sealed Air, which also makes Cryovac food packaging and Diversey
cleaning products, said it expects revenue of $6.8 billion in 2016,
below the $7.05 billion analysts polled by Thomson Reuters recently
forecast.
Sealed Air expects currency fluctuations to shave 6% of its
revenue, while divestitures will also hurt its rate of growth.
The company forecast adjusted earnings of $2.52 to $2.60 a
share, while analysts had forecast $2.57 a share in earnings for
the year.
Sealed Air has been facing currency headwinds and economic
uncertainty across the globe, particularly in emerging markets.
For the quarter ended Dec. 31, Sealed Air reported a profit of
$123.5 million, or 62 cents a share, up from $66.3 million, or 31
cents a share.
The prior-year quarter's profit was hit by an $84 million loss
on debt redemption and refinancing.
Excluding special items, per-share earnings rose to 76 cents
from 59 cents a year earlier.
Analysts polled by Thomson Reuters had forecast 50 cents a share
in earnings.
Revenue fell 11% to $1.75 billion, while analysts had forecast
$1.78 billion in revenue.
Excluding currency swings and divestitures, revenue was up 1.7%
as favorable pricing offset flat volumes.
Sales in its Latin America division were up 7% when excluding
currency impacts, offsetting flat sales in Asia Pacific and a 0.1%
decline in North America.
Shares of Sealed Air, inactive premarket, are down 11.5% in the
past three months through Tuesday's close.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
February 10, 2016 08:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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