Sealed Air Swings To Q3 Profit, Lifts FY Outlook; Shares Up

(RTTNews) - Packaging company Sealed Air Corp. (SEE), Wednesday posted a profit for the third quarter, turning around from a loss last year, when it was impacted by a hefty impairment charge. Earnings for the period trumped Wall Street expectations, as revenues and gross margins improved.

Moving ahead, the company lifted its full year earnings outlook. Following the news, shares of Sealed Air rose more than seven percent on the New York Stock Exchange.

Elmwood Park, New Jersey-based Sealed Air's third-quarter profit rose to $37.7 million or $0.18 per share from a loss of $1.232 billion or $6.38 per share last year.

Last year's bottom line included one-time costs of $6.72 per share, primarily impairment charge.

Adjusted earnings for the third quarter rose to $0.39 per share from $0.28 per share last year. On average, 13 analysts polled by Thomson Reuters expected earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Sealed Air's sales grew 2 percent to $1.94 billion from $1.90 billion last year. Analysts expected revenues of $1.93 billion for the quarter. Volume and product price/mix increased by 1.4 percent and 1.5 percent, respectively.

Food care segment sales rose 1.7 percent as prices and volumes improved, Diversey care division's sales climbed 1.4 percent. Medical applications and new venture sales advanced 4.3 percent, while product care jumped 3.6 percent.

Gross margins for the third quarter rose to 34 percent from 33.9 percent last year.

Looking forward to 2013, the company now expect adjusted earnings in the range of $1.25 to $1.30 per share, up from a prior estimate of $1.10 to $1.20 per share. Sealed Air now sees sales of about $7.7 billion, compared to its earlier sales projection of $7.7 billion to $7.9 billion. Wall Street currently expect earnings of $1.21 per share on revenues of $7.76 billion for the year.

SEE is currently trading at $30.70, up $2.18 or 7.64%, on a volume of 2.4 million shares.