Sealed Air Corporation released its first quarter results for 2012 on 3 May with sales totalling $1.92 billion, which is a 70 percent increase – 66 percent related to the Diversey acquisition. However, it also reported a loss per common share of $0.03 after a $0.21 per share effect from special terms.
‘The five percent increase in 2012 pro forma adjusted operating profit includes an estimated $15 million in cost synergies from the 2011-2014 Optimisation & Integration Program achieved in the quarter and largely attributed to the Diversey segment. These synergies helped offset lower volumes primarily from European economic weakness and unfavourable mix in the Diversey segment.
“We remain on track toward achieving our 2012 adjusted EBITDA and year-end net debt targets despite the uncertainty of the European economy and the uneven recovery in the U.S,” commented Sealed Air’s president and chief executive officer William V. Hickey.
“We are confident in the cost synergies with Diversey with increased cost synergy estimates in 2012 and future years, and we believe our vision is beginning to resonate with our customer base. We are quite pleased with the overall performance of our Food and Protective Packaging business segments, which achieved both volume and price/mix growth during the quarter.
“Diversey segment sales were less than planned in the quarter due to ongoing weakness in Europe and the timing of specific customer orders inNorth America. We expect to see a more normalised order pattern inNorth Americain that segment through the balance of the year.
“While we remain cautious about any European economic improvement, we are encouraged by high single-digit percent sales growth in developing regions and strong customer reception of our solutions resulting from our growth programs. We have built a strong foundation for growth across all of our businesses whenEuropedoes recover,” he stated.
For the full report, visit http://ir.sealedair.com/phoenix.zhtml?c=104693&p=irol-newsArticle&id=1691015