Sealed Air Reports Fourth Quarter and Full Year 2016 Results

Sealed Air Corporation (NYSE:SEE) today announced financial results for fourth quarter and full year 2016. Commenting on these results, Jerome A. Peribere, President and Chief Executive Officer, said, “In 2016, we generated a record level of cash flow, delivered margin improvement for the fifth consecutive year and introduced an unprecedented number of new and innovative solutions to our customers around the world. These innovations coupled with end-market growth opportunities lead to increased demand for our protein packaging, hygiene and e-Commerce solutions. Similar to our third quarter, these positive trends were offset by unfavorable currency, challenging business environments in emerging countries and Australia, and softness in the industrial market. We are confident the underlying fundamentals of our strategy are intact and expect accelerated top line growth and profitability improvements in 2017.”

Peribere continued, “As we proceed with our plans to pursue a tax-free spin-off of our Diversey Care and related food hygiene and cleaning business, or ‘New Diversey,’ we are also exploring other strategic alternatives, including a potential sale of New Diversey. This is the appropriate next step in our Company’s transformation and will enable us to unlock meaningful value for customers and shareholders.”

Fourth Quarter 2016 Highlights by Division
• Food Care net sales of $841 million were flat as reported. Currency had a negative impact on Food Care net sales of 2.3%, or $20 million, and divestitures had a negative impact of 0.6%, or $5 million. On an organic basis, net sales increased 2.7% due to positive volume of 2.0% and favorable price/mix of 0.7%. Volume growth of more than 5% in North America and positive trends in EMEA were partially offset by weakness in Latin America and Australia. Adjusted EBITDA of $178 million was attributable to favorable price/cost spread, positive volumes, restructuring savings and lower operating expenses, which were partially offset by unfavorable currency translation and divestitures. Adjusted EBITDA margins of 21.2% expanded 250 basis points compared to last year.
• Diversey Care net sales of $493 million decreased 0.4% as reported and increased 2.8% on a constant dollar basis. Currency had a negative impact on Diversey Care net sales of 3.2%, or $16 million in the quarter. Price/mix and volume increased 2.4% and 0.4% respectively. Volume growth of 7% in Asia-Pacific and 3% in North America were offset by lower volumes in the Middle East and Latin America. Diversey Care’s Adjusted EBITDA was $64 million or 13.0% of net sales. Adjusted EBITDA margins improved 180 basis points compared to the fourth quarter 2015 as a result of favorable price/cost spread and restructuring savings, which were offset by higher operating expenses.
• Product Care net sales of $394 million decreased 1.7% as reported and 0.5% on a constant dollar basis. Currency had a negative impact on Product Care net sales of 1.2%, or $5 million. Sales volume increased 1.5%, which was offset by unfavorable price/mix of 2.0%. North America volumes were up more than 3% as a result of continued strength in e-Commerce offset by rationalization efforts, ongoing softness in the industrial market and unfavorable price/mix. Adjusted EBITDA was $88 million or 22.3% of net sales. Adjusted EBITDA margins expanded 80 basis points compared to the same period a year ago due to higher volumes, which were partially offset by negative price/cost spread.

Company Updates on Separation of New Diversey
In mid-October the Company announced plans to pursue a tax-free spin-off of New Diversey. As the Company considers that plan, it is also exploring other strategic alternatives, including a potential sale of New Diversey.

Fourth Quarter and Full Year 2016 U.S. GAAP Summary
Fourth quarter net sales of $1.7 billion decreased 0.6% on an as reported basis. Currency had a negative impact on total net sales of 2.3%, or $40 million, and the Food Care divestitures had a negative impact on total sales of 0.3%, or $5 million, in the fourth quarter 2016.

For the full year 2016, net sales of $6.8 billion decreased 3.6% on an as reported basis. Currency had a negative impact on total net sales of 3.4%, or $243 million, and the Food Care divestitures had a negative impact on total sales of 1.4%, or $102 million, in 2016.
more detail at: http://ir.sealedair.com/phoenix.zhtml?c=104693&p=irol-newsArticle&ID=2244691

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