•Net Sales of $1.2 billion, up 3% as reported and 5% in constant dollars
•Net Earnings of $80 million or EPS of $0.51, up 6%
•Adjusted EBITDA of $241 million, up 10% as reported and 12% in constant dollars
“Our third quarter results reflect continued strong execution of our Reinvent SEE strategy. In constant dollars, we delivered 12% Adjusted EBITDA growth on 5% higher sales with Adjusted EBITDA margin expanding 130 basis points to 19.8%,” said Ted Doheny, Sealed Air’s President and CEO.
“We continue to see increased demand for our innovative and sustainable solutions across fresh food and protective packaging, which is easing top-line pressure from a slowdown in global industrial demand and currency headwinds. By accelerating sustainable innovations and driving productivity and cost efficiency across the business, we remain on track to achieve our full year 2019 earnings and free cash flow outlook. We are confident our strategy will continue to create value for SEE customers, shareholders and employees,” continued Doheny.
Unless otherwise stated, all results compare third quarter 2019 to third quarter 2018 from continuing operations. Year-over-year financial discussions present operating results from continuing operations as reported, on an organic basis and on a constant dollar basis. Organic refers to changes in unit volume and price performance and excludes acquisitions in the first year after closing, divestiture activity, and the impact of currency translation. Constant dollar refers to changes in net sales and earnings, excluding the impact of currency translation. Additionally, non-U.S. GAAP adjusted financial measures, such as Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Adjusted Net Earnings, Adjusted Diluted Earnings Per Share (“Adjusted EPS”) and Adjusted Tax Rate, exclude the impact of specified items (“Special Items”), such as restructuring charges, restructuring associated costs, gains and losses related to acquisition and divestiture of businesses, special tax items (“Tax Special Items”) and certain infrequent or one-time items. Please refer to the supplemental information included with this press release for a reconciliation of U.S. GAAP to Non-U.S. GAAP financial measures.
Third Quarter 2019 U.S. GAAP Summary
Net sales of $1.2 billion increased 3% on an as reported basis. Currency had a negative impact on total net sales of $25 million or 2%. Net earnings on an as reported basis were $80 million, or $0.51 per diluted share, which was unfavorably impacted by $20 million of Special Items, after tax. Restructuring and restructuring associated costs of $15 million, net of tax, was the largest component of Special Items. This compares to third quarter 2018 net earnings of $76 million, or $0.48 per diluted share, which was unfavorably impacted by $21 million of Special Items.
The effective tax rate in the third quarter 2019 was 22.3%, compared to 30.6% in the third quarter 2018. The third quarter 2019 effective rate was favorably impacted by the benefit of research and development tax credits related to prior periods.
more detail at: https://ir.sealedair.com/news-releases/news-release-details/sealed-air-reports-third-quarter-results-0