Sealed Air Corp. expects the company's turnaround efforts to continue through 2024 with end markets for its packaging products to improve during the second half of the year.
The Charlotte. N.C.-based plastic packaging company that faces the market under the name SEE, meanwhile, signaled a search for a new permanent CEO continues and the process will continue in the coming months.
Sealed Air earned $125 million, or 86 cents per diluted share, on sales of $1.38 billion for the fourth quarter of 2023. That compares with earnings of $95 million or 65 cents per diluted share, on sales of $1.41 billion during the previous fourth quarter.
Profit for the full year was $339 million, or $2.34 per diluted share, on sales of $5.49 billion for all of 2023. That compares with a profit of $491 million, or $3.33 per diluted share, on sales of $5.64 billion for 2022.
"While our end markets in 2024 should be better than 2023, we expect, at best, an L-shaped recovery with no near-term growth catalysts. We will continue to focus on our core business and customers, restore underlying fundamentals and position ourselves for accelerated growth in 2025 and beyond," co-CEO Emile Chammas said during a conference call to discuss financial results.
An L-shaped recovery is characterized by having a return to slow growth after a period of decline.
Reorganizational changes made so far have the company expecting annualized savings of $65 million, and Sealed Air expects that number to grow to $90 million with additional actions taken this year.
"As part of the effort, we have completed three plant closures in 2023 and are in the process of closing four additional sites as part of our footprint rationalization efforts with more sites under review," Chammas told stock analysts.
Sealed Air, when contacted after the conference call, did not reveal which locations are slated for closure.
"As a matter of company practice, Sealed Air (SEE) does not have any further comment other than what was discussed on today's earnings call. We remain focused on executing on our strategy and transformation to best serve our customers globally," a company spokeswoman said in an email.
Sealed Air, meanwhile, also recently indicated layoffs are coming for 83 people in Saddlebrook, N.J.
A job loss notice filed with the state indicates the job losses will be stretched out over several dates in the coming months starting in mid-June and ending in late September.
Sealed Air has been undertaking a turnaround program to become more profitable. Former CEO Ted Doheny resigned in late October, giving way to co-CEOs Chammas and Dustin Semach. Chammas had been chief operating officer and Semach had been chief financial officer, and both kept those roles in addition to the new responsibilities.
The company's board, at the time, signaled a dissatisfaction with progress toward improvements.
"While SEE has made progress expanding its portfolio, digitizing its global network, and driving operational efficiencies, the board recognizes there is more work to position SEE for long-term profitable growth,'' Chairman Henry Keizer said when Doheny stepped down.
The board indicated support for the co-CEOs as the company seeks to find a permanent replacement for Doheny.
"As our transformation takes hold, end markets recover and financing environment improves, we will be in a much stronger position to take actions to drive further shareholder value," Chammas said. "Meanwhile, our primary focus remains on making improvements we can drive regardless of the operating environment."