Sealed Air Corporation (NYSE:SEE) today announced financial results for second quarter 2017. Commenting on these results, Jerome A. Peribere, President and Chief Executive Officer, said, “As we had predicted last year, we are delivering on our accelerated growth strategy, led by strength in North America. In the first half 2017, volumes in North America increased 6% and 9% in the first and second quarters, respectively, as a result of continued adoption of our innovative solutions and strong end market demand across all proteins and within the e-Commerce and fulfillment sectors. We expect top-line growth to continue into the second half of the year and sequential profitability improvements through operational disciplines and increased sales of value-added solutions.”
Peribere continued, “Our Diversey sale to Bain Capital Private Equity is on track to close in September and we are committed to a timely and successful separation. This divestiture gives us an even greater focus on executing our profitable growth strategy. We will continue to invest in research and development, disruptive technologies and targeted acquisitions that enable geographic or adjacent market expansion. The net proceeds of the transaction provide us the financial flexibility to return value to shareholders through share repurchases, dividends and debt reduction. So far this year, we have already repurchased 6.5 million shares valued at $285 million and still have $1.9 billion available under our share repurchase program.”
Net sales of $1.1 billion increased 3.0% on an as reported basis. Currency had a negative impact on total net sales of 0.7%, or $7 million. As reported, net sales in North America increased 9%. Asia Pacific declined 2% while Latin America and EMEA declined 4% each.
Net income from continuing operations on a reported basis was $29 million, or $0.14 per diluted share, as compared to net income from continuing operations of $2 million, or $0.01 per diluted share, in the second quarter 2016. Net income in the second quarter 2017 was unfavorably impacted by $40 million of special items, including $18 million of tax expense and $18 million of charges related the pending sale of Diversey. Special items negatively impacting the second quarter of 2017 also included costs incurred related to the sale of Diversey, and restructuring and other restructuring associated costs. Net income in the second quarter 2016 included $72 million of special items, including charges related to ceasing operations in Venezuela, restructuring charges and other costs associated with our restructuring programs, and a loss on the remeasurement of our Venezuelan subsidiaries.
The effective tax rate in the second quarter of 2017 was 66.3%, compared to the effective tax rate of 97.1% in the second quarter of 2016. The effective tax rate in the second quarter of 2017 was negatively impacted by tax expenses related to the pending sale of Diversey, an increase in tax related to earnings mix, and settlement of an audit in Europe for $3 million. The effective tax rate in the second quarter of 2016 was negatively impacted by the charges in Venezuela for which there was no tax benefit, an increase in valuation allowance against foreign tax credits and increases in unrecognized tax benefits.
more detail at: http://ir.sealedair.com/phoenix.zhtml?c=104693&p=irol-newsArticle&ID=2292465