Sealed Air Turns To Profit In Q2, Adj. Earnings Top Estimates; Backs FY13 View

(RTTNews) - Sealed Air Corp. (SEE) Friday reported a profit for its second quarter compared to a loss last year, reflecting increase in sales as well as lower restructuring charges. Adjusted earnings beat analysts' expectations, while revenues matched view. The plastic-packaging company also backed its targets for full-year 2013. The shares are currently up about 8 percent in the morning trade.

For the second quarter, the firm posted net earnings available to common stockholders of $56.3 million or $0.26 per share, compared to a loss of $13.7 million or $0.07 per share in the year-ago quarter.

The company said its recent quarter included $19 million of special items, net of taxes, mainly including restructuring charges associated with its prior announced 2013 Earnings Quality Improvement Program.

On an adjusted basis, excluding impact of special items, earnings per share for the second quarter of 2013 were $0.35, while it was $0.16 per share last year.

On average, 13 analysts polled by Thomson Reuters expected earnings per share of $0.25 for the quarter. Analysts' estimates typically exclude one-time items.

Sealed Air said the financial results of Diversey Japan business, which was sold in November 2012, are reported as discontinued operations, net of tax, and, accordingly it has restated all previously reported financial information.

Net sales for the quarter improved 1.9 percent to $1.96 billion. The increase was 3.2 percent on a constant dollar basis. Analysts estimated revenues of $1.97 billion for the quarter.

Quarterly volume and product price/mix increased 2.4 percent and 0.8 percent, respectively.

Jerome Peribere, president and chief executive officer of the company said, "Our second quarter results demonstrate the benefits we are experiencing from our pricing initiatives and focus on manufacturing and operational improvements."

In addition, Sealed Air confirmed its 2013 guidance of adjusted earnings per share of $1.10 to $1.20, net sales in the range of $7.7 billion to $7.9 billion and said it is tracking toward the high-end of adjusted EBITDA range of $1.01 billion to $1.03 billion.

Analysts project annual earnings per share of $1.17, on $7.80 billion in revenues.

SEE is currently trading at $30.06, up 7.82 percent, on a volume of 530 thousand shares on the NYSE.