Sealed Air Corporation (SEE - Free Report) will display its latest automated solutions and packaging options at Pack Expo 2019, — the world’s largest packaging trade show. Notably, these solutions are designed to aid companies by eliminating waste and ensure more sustainable operations. The trade show will be held in Las Vegas from September 23 through 25.
The trade show is Sealed Air’s first global packaging event since the closure of the acquisition of Automated Packaging Systems, Inc. (‘’APS’’). The acquisition will enhance its portfolio, fueling growth in e-commerce, fulfillment and food packaging markets. The company expects the APS acquisition to contribute approximately $120 million to current-year revenues.
APS will showcase few solutions, namely Autobag 650 Horizontal Bagging System and Polyester Laminated to High Barrier, Coextruded Packaging Film. Meanwhile, Sealed Air will display Sealed Air brand StealthWrap parceling film, Bubble Wrap brand Instasheeter Select System, Bubble Wrap brand Jiffylite Auto Compact Mailer System and Cryovac brand Onpack-3002 Automated Pumpables System.
APS’s Autobag 650 is a wide bagging system designed for packaging of large e-commerce products horizontally. The solution removes the requirement for a separate labeling operation. Further, APS’ Polyester Laminated to High Barrier, Coextruded Packaging Film offers oxygen-barrier properties for food products that require extended shelf life and odor containment.
Sealed Air’s StealthWrap parceling film seals and protects packages during transit, while also removing the requirement for overboxing. The system features three-sided scanners for minimizing labor and uptime.
The Bubble Wrap brand Instasheeter Select is a new automated system that streamlines packaging operations by eliminating the need for manual insertion of protective material. The solution reduces packaging waste and increases throughput. In addition, the Bubble Wrap brand Jiffylite Auto has been developed for operations using kraft bubble mailers. Its faster-loading and heat-sealing features improve throughput velocity.
The Cryovac brand Onpack-3002 offers solutions for pumpable food products like soup, sauces and condiments. Its dueling system function enables processors to fill two pouches at the same time, while doubling productivity with up to 140 bags per minute.
In the second-quarter earnings call, Sealed Air projected adjusted earnings per share at $2.70-$2.80 compared with the prior estimate of $2.65-$2.75. Net sales are projected at $4.85 billion compared with the previous estimate of $4.8 billion. Acquisitions are expected to contribute $190 million toward revenues. Also, adjusted EBITDA is estimated to lie between $950 and $960 million compared with the prior guidance of $925 million to $945 million.
The company’s top line will be backed by enhanced demand for its core product portfolio, recently-introduced innovations, robust fresh food markets and e-commerce activities. The company has been witnessing increased demand for essential and high-performing packaging solutions that extend shelf life, reduce waste and drive customer productivity. Moreover, anticipated benefits from reducing costs, operational excellence and commercialization of new innovations, along with favorable global business trends, position the company well for improved margins.
Over the past year, Sealed Air shares have gained 3.6% as against the industry's decline of 35%.
Zacks Rank & Other Stocks to Consider
Sealed Air currently carries a Zacks Rank #2 (Buy).
Some other top-ranked in the Industrial Products sector are Albany International Corporation (AIN - Free Report) , AGCO Corporation (AGCO - Free Report) and UFP Technologies, Inc. (UFPT - Free Report) While Albany International sports a Zacks Rank #1 (Strong Buy), AGCO Corp and UFP Technologies carry a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albany International has an estimated earnings growth rate of 33.85% for 2019. The company’s shares have rallied 40.1%, year to date.
AGCO Corp has a projected earnings growth rate of 11.2% for the current year. The stock has gained 18.4% so far this year.
UFP Technologies has an expected earnings growth rate of 8.10% for the ongoing year. The stock has appreciated 31.5% in the year-to-date period.
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