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Sealed Air (SEE) Spends $30M to Grow Automated Packaging Systems
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Sealed Air Corporation (SEE - Free Report) is making capital investments of more than $30 million in a bid to expand its global production capacity and invest in new equipment to fulfill the surging demand for Automated Packaging Systems (APS) Autobag solutions.
The company plans to invest in touchless automation, proprietary digital printing technologies and capacity expansions for APS facilities in Streetsboro and Bedford Heights, OH, and Keyser, WV. These investments are likely to conclude this year. Apart from this, Sealed Air will boost capacity and install new equipment at APS sites in Malvern, the U.K.; Cavite, Philippines; and Qingpu, China.
In 2019, Sealed Air acquired Automated Packaging Systems, Inc., a leading manufacturer of high-reliability, automated bagging systems. This buyout helped the company strengthen its automated solutions and sustainable packaging offerings, while driving growth and innovation in touchless automation and bagging systems for e-commerce, industrial, and food customers. The company had previously acquired AFP, Inc., which has expanded its protective packaging solutions in the electronics, transportation and industrial markets with custom-engineered applications.
The company is gaining from its reformation plan — Reinvent SEE Strategy. The new strategy is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer-service enhancements. One of the most vital aspects of this strategy involves investment in technology and resources focusing on new and existing high-growth markets. The company is on track to realize benefits of around $65 million from Reinvent SEE in 2021.
Sealed Air’s top line is benefiting from solid demand for the packaging of protein, foods, fluids and goods for the medical and life-sciences industries as well as the e-commerce boom amid the pandemic-induced stay-at-home restrictions. Also, demand for temperature-assurance packaging solution has been high as it ensures safe and secure distribution of COVID-19 vaccines. The company is seeing elevated demand sustainable packaging solutions that maximize food safety, protect goods, reduce waste.
The company projects net sales in the range of $5.25 billion to $5.35 billion for 2021. This indicates an improvement of 7-9% as reported and 6-8% in constant dollars from the prior year.
Price Performance
The stock has gained 28.5% so far this year, outperforming the industry’s growth of 8.9%.
A few other top-ranked stocks in the Industrial Products sector are Tennant Company (TNC - Free Report) , Encore Wire Corp. (WIRE - Free Report) and Arconic Corp. . All of these stocks sport a Zacks Rank #1, at present.
Tennant has an anticipated earnings growth rate of 49.5% for 2021. The company’s shares have gained around 18%, year to date.
Encore Wire has an estimated earnings growth rate of 49.5% for the ongoing year. Year to date, the company’s shares have rallied nearly 36%.
Arconic has a projected earnings growth rate of 447% for the current year. The stock has appreciated around 21%, so far this year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Sealed Air (SEE) Spends $30M to Grow Automated Packaging Systems
Sealed Air Corporation (SEE - Free Report) is making capital investments of more than $30 million in a bid to expand its global production capacity and invest in new equipment to fulfill the surging demand for Automated Packaging Systems (APS) Autobag solutions.
The company plans to invest in touchless automation, proprietary digital printing technologies and capacity expansions for APS facilities in Streetsboro and Bedford Heights, OH, and Keyser, WV. These investments are likely to conclude this year. Apart from this, Sealed Air will boost capacity and install new equipment at APS sites in Malvern, the U.K.; Cavite, Philippines; and Qingpu, China.
In 2019, Sealed Air acquired Automated Packaging Systems, Inc., a leading manufacturer of high-reliability, automated bagging systems. This buyout helped the company strengthen its automated solutions and sustainable packaging offerings, while driving growth and innovation in touchless automation and bagging systems for e-commerce, industrial, and food customers. The company had previously acquired AFP, Inc., which has expanded its protective packaging solutions in the electronics, transportation and industrial markets with custom-engineered applications.
The company is gaining from its reformation plan — Reinvent SEE Strategy. The new strategy is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer-service enhancements. One of the most vital aspects of this strategy involves investment in technology and resources focusing on new and existing high-growth markets. The company is on track to realize benefits of around $65 million from Reinvent SEE in 2021.
Sealed Air’s top line is benefiting from solid demand for the packaging of protein, foods, fluids and goods for the medical and life-sciences industries as well as the e-commerce boom amid the pandemic-induced stay-at-home restrictions. Also, demand for temperature-assurance packaging solution has been high as it ensures safe and secure distribution of COVID-19 vaccines. The company is seeing elevated demand sustainable packaging solutions that maximize food safety, protect goods, reduce waste.
The company projects net sales in the range of $5.25 billion to $5.35 billion for 2021. This indicates an improvement of 7-9% as reported and 6-8% in constant dollars from the prior year.
Price Performance
The stock has gained 28.5% so far this year, outperforming the industry’s growth of 8.9%.
Zacks Rank & Other Stocks to Consider
Sealed Air currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few other top-ranked stocks in the Industrial Products sector are Tennant Company (TNC - Free Report) , Encore Wire Corp. (WIRE - Free Report) and Arconic Corp. . All of these stocks sport a Zacks Rank #1, at present.
Tennant has an anticipated earnings growth rate of 49.5% for 2021. The company’s shares have gained around 18%, year to date.
Encore Wire has an estimated earnings growth rate of 49.5% for the ongoing year. Year to date, the company’s shares have rallied nearly 36%.
Arconic has a projected earnings growth rate of 447% for the current year. The stock has appreciated around 21%, so far this year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>