Net sales of $1.2 billion, down 1% as reported; up 3% constant currency
Net earnings of $100 million or $0.64 per share, up approximately 300%
Adjusted EBITDA of $260 million, up 10%; Adjusted EPS of $0.76 per share, down 5%
Year to date cash flow from operations of $213 million, up 26%
Provides full year 2020 guidance
Sealed Air Corporation (NYSE: SEE) today announced financial results for the second quarter 2020.
“We are navigating through the challenges of the COVID-19 pandemic with a focus on business continuity and our purpose – ‘to protect, to solve critical packaging challenges, and to leave our world better than we found it’. Our broad product portfolio, global scale and organizational agility have enabled us to respond to significant changes across the markets and geographies we serve.
As compared to last year, in the second quarter, Adjusted EBITDA was up 10% and Adjusted EBITDA margin expanded 220 basis points on constant dollar sales growth of 3%. The increase in earnings generated higher cash flow from operations in the first half of the year,” said Ted Doheny, Sealed Air’s President and CEO.
“Our results demonstrate progress towards world-class. Despite adversity, we are driving our Reinvent SEE transformation faster. We are accelerating investments in automation to address market needs as we move to a ‘touchless’ environment in our own operations and with our customers. Our leadership in packaging innovation, sustainability, food safety, minimizing waste and protecting valuable goods, is more critical than ever.
Our execution so far in 2020 and increased clarity of customer demand for our essential packaging solutions give us the confidence to re-issue guidance for the full year, amidst continued overall market uncertainty,” continued Doheny.
Second Quarter 2020 U.S. GAAP Summary
Net sales of $1.2 billion decreased 1% as reported. Currency had a negative impact on total net sales of $42 million or approximately 4%.
Net earnings were $100 million, or $0.64 per diluted share. Special Items had a negative impact of approximately $18 million on net earnings in the quarter, which was largely due to restructuring and restructuring associated charges of $14 million ($11 million, net of taxes). This compares to net earnings in the second quarter 2019 of $26 million, or $0.16 per diluted share, which was unfavorably impacted by $100 million of Special Items. Prior year Special Items included a charge of $59 million ($44 million, net of taxes) in connection with a settlement agreement with Novipax Holdings LLC, and $51 million ($36 million, net of taxes) in restructuring and restructuring associated charges.
The effective tax rate in the second quarter 2020 was 30.8%, compared to 32.5% in the second quarter 2019.
more detail at: https://ir.sealedair.com/news-releases/news-release-details/see-reports-q2-2020-results