ELMWOOD PARK, N.J. (Aug. 7, 12 p.m. ET) — The CEO of Sealed Air Corp., the maker of plastic packaging products and Bubble Wrap, says he is “disappointed” with its second quarter results, as poor economic conditions in Europe contributed to a 26 percent drop in profit.
The Elmwood Park-based company currently conducts about 37 percent of its business in Europe, Middle East and Africa, said spokesman Ken Aurichio.
“We are disappointed by our adjusted Ebitda results, which were lower than we expected,” CEO and President William V Hickey said in a statement. “Persistent weakness in our customers' end markets and cautious order patterns became more challenging in the latter part of the quarter as European economic conditions further declined and our food businesses navigated through challenging protein production trends.”
Adjusted Ebitda was $243 million, including unfavorable foreign currency of $10 million, while 2011 Ebitda would have been $305 million. Overall sales increased 35 percent to $2 billion but volume sales in the EMEA region fell because of a 3 percent volume decline in Europe.
The company has started to implement cost saving measures, including closing a plant in Europe.
In terms of segment, food packaging sales were flat, with volume growth in Latin America compensating for declines in North America and Europe. Operating profit fell 26 percent to $46 million.
Sales of protective packaging increased slightly – 3 percent - and operating profit decreased 7 percent to $43 million.