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Sealed Air (SEE) Divests Reflectix Business to Realign Portfolio
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Sealed Air Corporation (SEE - Free Report) recently announced that it has completed the sale of its Reflectix business to an affiliate of Balcan Innovations for $82.5 million. This move is part of the company’s strategic realignment of its business portfolio. The transaction includes Reflectix manufacturing facilities in Markleville, IN, with approximately 80 employees.
Reflectix sells branded reflective insulation solutions that comprise two layers of aluminum foil covering layers of AirCap bubble and Cell-Aire polyethylene foam. Given its compatibility and pliability, it conforms to product shapes and sizes better than alternative insulating materials. Reflectix’s solutions are ideal for new construction or retrofit installation in commercial or domestic structures. Reflectix’s products are widely distributed in North America through more than 3,500 dealer, distributor and retail locations. The business has been classified under Sealed Air’s Protective Packaging segment so far.
This news comes on the heels of Sealed Air’s third-quarter results. The company’s adjusted earnings per share was 86 cents, which improved 4.8%, year over year. The bottom line beat the Zacks Consensus Estimate of 82 cents. Total revenues were up 14% year over year to $1,407 million in the reported quarter. The top line surpassed the Zacks Consensus Estimate of $1,383 million.
Sealed Air expects net sales of $5.5 billion in 2021, suggesting year-over-year increase of 12% on a reported basis and 11% in constant dollars. The company now expects adjusted EBITDA between $1.12 billion and $1.14 billion for the current year. The adjusted earnings per share is now anticipated in the band of $3.50 to $3.60.
Amcor reported adjusted earnings per share of 18 cents in the quarter ended Sep 30, 2021, which improved 13% year over year. Sonoco’s third-quarter adjusted earnings per share was 91 cents — marking a 6% growth from the prior-year quarter.
Packaging Corporation witnessed a 71% increase in adjusted earnings per share to $2.69 in third-quarter 2021. While all of these companies benefited from improved demand in the July-September quarter, these gains were somewhat negated by inflationary cost pressures and supply chain disruptions across the board.
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Sealed Air (SEE) Divests Reflectix Business to Realign Portfolio
Sealed Air Corporation (SEE - Free Report) recently announced that it has completed the sale of its Reflectix business to an affiliate of Balcan Innovations for $82.5 million. This move is part of the company’s strategic realignment of its business portfolio. The transaction includes Reflectix manufacturing facilities in Markleville, IN, with approximately 80 employees.
Reflectix sells branded reflective insulation solutions that comprise two layers of aluminum foil covering layers of AirCap bubble and Cell-Aire polyethylene foam. Given its compatibility and pliability, it conforms to product shapes and sizes better than alternative insulating materials. Reflectix’s solutions are ideal for new construction or retrofit installation in commercial or domestic structures. Reflectix’s products are widely distributed in North America through more than 3,500 dealer, distributor and retail locations. The business has been classified under Sealed Air’s Protective Packaging segment so far.
This news comes on the heels of Sealed Air’s third-quarter results. The company’s adjusted earnings per share was 86 cents, which improved 4.8%, year over year. The bottom line beat the Zacks Consensus Estimate of 82 cents. Total revenues were up 14% year over year to $1,407 million in the reported quarter. The top line surpassed the Zacks Consensus Estimate of $1,383 million.
Sealed Air expects net sales of $5.5 billion in 2021, suggesting year-over-year increase of 12% on a reported basis and 11% in constant dollars. The company now expects adjusted EBITDA between $1.12 billion and $1.14 billion for the current year. The adjusted earnings per share is now anticipated in the band of $3.50 to $3.60.
Sealed Air and its peers like Amcor plc (AMCR - Free Report) , Sonoco Products Company (SON - Free Report) and Packaging Corporation of America (PKG - Free Report) fall under the Zacks Containers - Paper and Packaging industry.
Amcor reported adjusted earnings per share of 18 cents in the quarter ended Sep 30, 2021, which improved 13% year over year. Sonoco’s third-quarter adjusted earnings per share was 91 cents — marking a 6% growth from the prior-year quarter.
Packaging Corporation witnessed a 71% increase in adjusted earnings per share to $2.69 in third-quarter 2021. While all of these companies benefited from improved demand in the July-September quarter, these gains were somewhat negated by inflationary cost pressures and supply chain disruptions across the board.