Sealed Air Corporation Reports Q3 2020 Results

+Net sales of $1.2 billion, up 2% as reported; up 3% constant currency
+Net earnings of $132 million, up 66%; EPS of $0.85, up 67% *Adjusted EBITDA of $259 million, up 8%; Adjusted EPS of $0.82, up 28%
+Year to date cash flow from operations of $410 million, up 63%

“We continue to navigate through the pandemic with a focus on Zero Harm, business continuity and our purpose: ‘to protect, to solve critical packaging challenges, and to leave our world better than we found it’. Our broad portfolio, global scale and agility have enabled us to effectively address evolving demands across our end markets and geographies.

Despite challenges, earnings and cash flow from operations in the first nine months of year are up significantly versus 2019, which is a credit to our people, our customer relationships and the strength and resilience of our business,” said Ted Doheny, Sealed Air’s President and CEO.

“Our performance in 2020 reflects continued execution of our Reinvent SEE business transformation. With markets moving to a more ‘touchless environment’, we are expanding our ‘SEE Automation’ and sustainability solutions, which includes differentiated packaging equipment, services, and materials. The direction we are taking the business is strengthening our global leadership in food safety, minimizing waste and protecting valuable goods.

We are increasing our full year 2020 sales, earnings and cash flow guidance based on strong execution to date and higher growth in e-Commerce, fulfillment and automated equipment,” continued Doheny

Third Quarter 2020 U.S. GAAP Summary
Net sales of $1.2 billion increased 2% as reported. Currency had a negative impact on total net sales of $12 million or approximately 1%.

Net earnings were $132 million, or $0.85 per diluted share. Special Items, which were largely due to one-time net tax related benefits, contributed $5 million to net earnings. This compares to third quarter 2019 net earnings of $80 million, or $0.51 per diluted share, which were unfavorably impacted by $20 million of Special Items, including restructuring and restructuring associated costs of $15 million, net of tax.

The effective tax rate in the third quarter 2020 was 11.7%, compared to 22.3% in the third quarter 2019. The lower tax rate was primarily the result of recently issued U.S. global intangible low taxed income (GILTI) regulations.

The effective rate in the nine months ending September 30, 2020 was 21.5% compared to 27.9% for the same period in 2019. The current year to date effective tax rate was favorably impacted by the recently issued U.S. GILTI regulations and the resolution of uncertain tax positions.
details at: https://ir.sealedair.com/static-files/bd95eb52-b0a2-4e8c-b42f-2b8f755ce0db

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