Sealed Air, the renowned manufacturer of packaging materials, including the beloved bubble wrap, is facing a challenging period due to sluggish demand. As a result, the company has revised its full-year sales and adjusted earnings projections.
Revised Sales Outlook
The Charlotte, N.C.-based company now expects its annual sales to range between $5.40 billion and $5.60 billion. This marks a notable decrease from its previous outlook of $5.85 billion to $6.10 billion.
Adjusted Earnings Forecast
Similarly, Sealed Air has adjusted its full-year adjusted earnings expectations. The company now anticipates earnings per share to fall between $2.75 and $2.95, compared to the previous range of $3.50 to $3.80.
Chief Executive Ted Donehy commented on the situation, stating, “We anticipate ongoing demand weakness, with second-half volumes resembling those of the first half of 2023.” In response, Sealed Air is implementing a comprehensive cost-cutting strategy to mitigate the impact. By the end of 2025, the company aims to reduce costs by $140 million to $160 million annually.
Focused on Improvement
Sealed Air remains focused on enhancing its operations amidst these challenges. The company is prioritizing improvements in automation and streamlining its supply chain, among other initiatives.