Sealed Air Corporation (SEE) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $43.20 million, or $ 0.22 a share in the quarter, against a net profit of $102.40 million, or $0.51 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $84.80 million, or $0.43 a share compared with $82.80 million or $0.42 a share, a year ago. Revenue during the quarter went up marginally by 2.61 percent to $1,032.20 million from $1,005.90 million in the previous year period. Gross margin for the quarter contracted 77 basis points over the previous year period to 32.59 percent. Total expenses were 87.05 percent of quarterly revenues, up from 85.30 percent for the same period last year. That has resulted in a contraction of 175 basis points in operating margin to 12.95 percent.
Operating income for the quarter was $133.70 million, compared with $147.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $181.90 million compared with $186.20 million in the prior year period. At the same time, adjusted EBITDA margin contracted 89 basis points in the quarter to 17.62 percent from 18.51 percent in the last year period.
Commenting on these results, Jerome A. Peribere, president and chief executive officer, said, “2017 is a transformational year for Sealed Air. In March, we announced the sale of Diversey to Bain Capital Private Equity in a transaction valued at $3.2 billion. This transaction marks a significant milestone for both New Sealed Air and Diversey and we are committed to a timely and successful separation. For Sealed Air, the divestiture gives us an even greater focus on executing our profitable growth story and the financial flexibility to invest in our core business.”
Sealed Air Corp forecasts revenue to be $4,300 million for fiscal year 2017. For fiscal year 2017, the company projects diluted earnings per share to be $1.70 on adjusted basis.
Operating cash flow improves
Sealed Air Corporation has generated cash of $17.20 million from operating activities during the quarter, up 17.01 percent or $2.50 million, when compared with the last year period. The company has spent $55.30 million cash to meet investing activities during the quarter as against cash outgo of $68.70 million in the last year period. It has incurred capital expenditure of $48 million on net basis during the quarter, up 3.67 percent or $1.70 million from year ago period.
The company has spent $45.70 million cash to carry out financing activities during the quarter as against cash inflow of $26.10 million in the last year period.
Cash and cash equivalents stood at $258.40 million as on Mar. 31, 2017, down 8.66 percent or $24.50 million from $282.90 million on Mar. 31, 2016.
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