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Sealed Air optimistic despite 20% drop in Q2 salesJill Park, 30 July 2009Be the first to comment on this article Sealed Air’s food businesses are weathering the recession better than its protective packaging businesses, according to the company’s half-year results released today. The group reported an 20% drop in sales to $1.0bn in the second quarter of 2009 compared to last year. Protective packaging sales were down 28%, while food packaging and food solutions sales dropped 14% and 15% respectively. Pre-tax profits fared better, though, falling just 3% to $81.9m. Food solutions sales, the company said, had been worst hit in Europe where meat consumption has reduced due to the recession. Food packaging’s decline was linked to very strong sales in the second quarter of 2008. The 28% decline in protective packaging sales, meanwhile, was put down to the poor economic conditions in both North America and Europe but was, the company said, “generally in line with production, export and shipping trends”. “We did achieve a 2% year over year increase in our consolidated operating profit excluding the impact of currency translation, which was largely based on the strength of our food business,” said Sealed Air’s president and chief executive William Hickey. Hickey admitted that the global recession has continued to have a strong impact on the company’s protective packaging and speciality materials businesses. He said: “We look to a seasonal volume increase in our food businesses in the third quarter and a slow recovery in our Protective Packaging and Speciality Materials businesses later this year and into 2010.” Sealed Air operates across 52 countries and manufactures a range of products including Bubble Wrap, Jiffy bags and Cryovac amongst others. SEALED AIR Q2 RESULTS Total Sales 1028.0 (2008: 1278.8) Pre-tax profit 81.9 (84) Speak Your Mind |
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