Sealed Air Hikes Prices - Analyst Blog

By
A A A

Consumer packaging company Sealed Air Corporation ( SEE ) has announced price hikes of 4-9% for most of the products of its Food Care and Product Care units in North America, to combat higher costs for major petrochemical raw materials.

Since Dec 2012, price for polyethylene (PE) has reportedly increased 16% on a cumulative basis, despite low ethane costs due to tightening PE capacity utilizations. Following the latest increase of PE on Sep 1, 2013, suppliers also raised prices.

In order to maintain investments in services and innovation, Sealed Air has increased its product prices. The company's efforts of minimizing the impact of cost increases will also help customers in the long term. The current price hike will be effective from Nov 1.

The hike is in sync with Sealed Air's plans to hike prices in the second half of 2013 to counter material cost increases and overcome the weakness in pricing in the first half.

Sealed Air, which is a specialty packaging service provider alongwith Berry Plastics Group, Inc. ( BERY ) and Graphic Packaging ( GPK ),  reported second-quarter 2013 adjusted net earnings from continuing operations of 35 cents per share, which more than doubled from the year-ago earnings. Strong growth in Asia, Middle East, Africa and Turkey (AMAT) and Latin America, benefits from pricing initiatives and focus on manufacturing and operational improvements led to strong earnings.

Sealed Air's Integration & Optimization Program will lead to cost savings and benefits of approximately $195 million to $200 million by the end of 2014. The company is expected to realize an additional $90 million of benefits in 2013. The company announced an additional restructuring plan with projected annualized savings of $80 million by 2015.

Elmwood Park, NJ-based Sealed Air is a major specialty packaging service provider to a diverse set of end markets. The company operates in the United States and in 50 other countries with packaging and performance-based materials and equipment systems serving food, medical, and an array of industrial and consumer applications.

Sealed Air currently retains a Zacks Rank #4 (Sell). Sonoco Products Co. ( SON ) also belongs to the packaging industry and holds a Zacks Rank #2 (Buy).



BERRY PLASTICS (BERY): Free Stock Analysis Report

GRAPHIC PKG HLD (GPK): Free Stock Analysis Report

SEALED AIR CORP (SEE): Free Stock Analysis Report

SONOCO PRODUCTS (SON): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AMAT , BERY , GPK , SEE , SON

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

ColonialMills_USETBASITE
ColonialMills_USETBASITE            

Stocks

Referenced

Most Active by Volume

81,768,754
  • $74.11 ▼ 2.31%
77,395,717
  • $9.42 ▼ 5.80%
67,947,205
  • $17.02 ▲ 0.18%
53,864,169
  • $32.58 ▼ 3.95%
44,748,631
  • $11.32 ▲ 0.98%
42,926,278
  • $9.97 ▼ 9.03%
42,401,116
  • $41.80 ▼ 0.67%
39,870,972
  • $106.98 ▼ 0.34%
As of 10/30/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com