Sealed Air Reports 3% Decline in Second-Quarter Sales

Sealed Air, the Charlotte-based packaging company known for its bubble wrap and other materials, experienced a 3% drop in sales during the second quarter. The decrease was primarily due to lower volumes and soft demand for their packaging products.

The company reported a net profit of $99.1 million, or 68 cents per share, compared to $113.9 million, or 77 cents per share, in the same period last year. Earnings from continuing operations were recorded at 65 cents per share.

However, adjusted earnings performed better than expected, coming in at 80 cents per share, surpassing the projected 67 cents per share anticipated by analysts surveyed by FactSet.

Total sales declined from $1.42 billion to $1.38 billion, with a significant 18% decrease in sales from the protective unit. Analysts had predicted sales of $1.41 billion, but the results fell short.

Chief Executive Ted Doheny attributed the decline in sales and earnings to the ongoing weakness in the markets that the company serves. He stated, "We expect demand weakness to continue."

To counteract these challenges, Sealed Air is implementing a cost-cutting program. The initiative aims to reduce costs by $140 million to $160 million annually by the end of 2025.

The company remains focused on addressing market fluctuations and driving growth amidst the persisting demand uncertainties.