Sealed Air Corporations (SEE), a packaging solution company with products including Cryovac, Autobag and Bubble Wrap, reported third-quarter earnings on Wednesday that beat Wall Street expectations.
For the quarter, Sealed Air adjusted earnings per share of 82 cents, exceeding Wall Street forecasts by 16 cents.
Revenue for the quarter came in at $1.2 billion, also beating estimates of $1.19 billion.
The company reported year-to-date cash flow from operations of $410 million, up 63 percent.
“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,” CEO Tom Doheny said in a press release.
Doheny added that the company is increasing full-year 2020 guidance across sales, earnings and cash flow.
On a call with analysts, Doheny characterized the quarter as “solid.”
“For the first time in six quarters, protective delivered year-over-year organic volume growth attributable to strength in e-commerce, fulfillment and automated equipment,” Doheny said.
He added that growth in protective was offset by “a modest volume decline in food,” mostly attributable to labor challenges in meatpacking plants and a “lagging recovery in foodservice.”
According to Doheny, 64 percent of the sales in the first nine moths came from packaging, fresh and frozen proteins, and other foods and fluids and goods for the pet care, medical and life sciences space.
“There continues to be an imbalance across the food industry with higher demands in the retail channel, including e-food and e-grocery, offset by restrictions and heightened safety concerns across the foodservice sector. Also, while many meat packaging plants around the world are up and running, they are not operating at full production rates and are managing labor shortages,” Doheny added.
