Sealed Air Reports Fourth Quarter and Full Year 2017 Results

• 2017 Sales from Continuing Operations of $4.5 Billion, an increase of 6% As Reported
• 2017 Net Earnings from Continuing Operations of $63 Million, Reported Net Earnings Per Share from Continuing Operations of $0.33 and Operating Cash Flow of $398 Million
• 2017 Adjusted EBITDA of $833 Million, or 18.7% of Net Sales, Adjusted EPS from Continuing Operations of $1.81 and Free Cash Flow, excluding payments related to the sale of Diversey, of $421 million, all exceeding the Company’s previously provided guidance
• Provides Full Year 2018 Outlook

Sealed Air Corporation (NYSE: SEE) today announced financial results for the fourth quarter and full year 2017. Commenting on these results, Ted Doheny, President and Chief Executive Officer, said, “In 2017, we exceeded our previously provided guidance for Net Sales, Adjusted EBITDA, Adjusted EPS and Free Cash Flow. Our sales growth accelerated into year-end, resulting in 11% growth in the fourth quarter and 6% for the full year. We capitalized on strong end market trends within the protein and e-Commerce and fulfillment sectors and experienced increased demand for our new innovations. We executed on our share repurchase program by returning $1.3 billion of capital through the use of open market and accelerated share repurchase programs since January 1, 2017. We currently have approximately $867 million remaining under the authorized repurchase program.”

Doheny continued, “I have been working closely with our leadership team to accelerate our strategy. I’m excited to see the potential that we have within Sealed Air and take our performance to the next level. In 2018, we plan to drive profitable growth, recognize and promote talent and further improve productivity with our Sealed Air Operational Excellence culture. We will continue to focus on developing sustainable solutions that leave our world, environment and communities better than we found them.”

Fourth Quarter and Full Year 2017 U.S. GAAP Summary, Continuing Operations
Fourth quarter net sales of $1.2 billion increased 11% on an as reported basis. Currency had a positive impact on total net sales of 2%, or $25 million. For the full year 2017, net sales of $4.5 billion increased 6% on an as reported basis. Currency had a positive impact on total net sales of 1%, or $30 million. As reported, net sales increased across all regions for the fourth quarter and full year 2017.

Fourth quarter net earnings from continuing operations on a reported basis was $25 million, or $0.14 per diluted share, as compared to net earnings from continuing operations of $151 million, or $0.77 per diluted share, in the fourth quarter 2016. Net income in the fourth quarter 2017 was unfavorably impacted by $78 million of special items, including $42 million of tax related items, $21 million related to the sale of Diversey, $11 million primarily related to acquisition activity and $5 million of restructuring and other restructuring associated costs. Net earnings in the fourth quarter 2016 included $53 million of special items, including $62 million of tax related items partially offset by $8 million of charges related to restructuring and other costs associated with our restructuring programs.

Full year 2017 net earnings from continuing operations on a reported basis was $63 million, or $0.33 per diluted share, as compared to net earnings from continuing operations of $292 million, or $1.48 per diluted share, for full year 2016. Net earnings for the full year 2017 was unfavorably impacted by $280 million of special items, including $152 million of tax expense related to the sale of Diversey, as well as $55 million of charges related to the sale of Diversey, $26 million of restructuring and other restructuring associated costs and $16 million primarily related to acquisition activity. Net earnings for full year 2016 included $42 million of special items, primarily driven by $49 million related to ceasing operations in Venezuela and $22 million of restructuring and other associated costs.

The effective tax rate in the fourth quarter of 2017 was 79.0%, compared to the effective tax rate of (23.8)% in the fourth quarter of 2016. The effective tax rate in the fourth quarter of 2017 was negatively impacted primarily by the revaluation of deferred tax assets as a result of U.S. Tax Reform. The effective tax rate in the fourth quarter of 2016 was favorably impacted by changes in our repatriation strategy.

The effective tax rate for full year 2017 was 84.0%, compared to the effective tax rate of 24.6% for full year 2016. The 2017 rate was negatively impacted primarily by additional tax expenses related to the sale of Diversey and the revaluation of deferred tax assets as a result of U.S. Tax Reform.
more detail at:  http://ir.sealedair.com/phoenix.zhtml?c=104693&p=irol-newsArticle&ID=2331255

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