Sealed Air Rises on Better-Than-Expected 4Q Earnings
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, in active premarket, are down 11.5% in the past three months through Tuesday's close.