Sealed Air Corp. (SEE) reported that its first-quarter net earnings available to common stockholders was $2.7 million, compared to a loss $6.0 million in the year ago quarter. On a reported basis, first quarter 2013 earnings per share was $0.01 per share as compared with a loss of $0.04 per share in 2012.
First quarter 2013 reported earnings included $34 million of special items (net of taxes) comprised of a loss on debt redemption of $20 million, losses related to the devaluation of the Venezuelan bolivar in February 2013 of $11 million, and costs associated with the 2011 - 2014 Integration and Optimization Program of $3 million.
First quarter 2012 reported loss per share included $43 million of special items primarily comprised of restructuring charges associated with the 2011 - 2014 Integration and Optimization Program.
Adjusted earnings per share were $0.17 for the first quarter, compared with 2012 Adjusted EPS of $0.16. Excluding SARs expense, first quarter Adjusted earnings per share was $0.24 compared with 2012 Adjusted earnings per share of $0.20.
Net sales for the quarter were $1.852 billion, compared to $1.845 billion last year.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share on revenues of $1.86 billion for the quarter. Analysts' estimates typically exclude special items.
The company is announcing an earnings quality improvement plan aimed at delayering management and making it more cost efficient, especially in Europe. The plan is estimated to generate annualized savings of approximately $80 million by the end of 2015 at an estimated total cost in the range of $180 to $200 million. Savings for 2013 are expected to be minimal and one-time cash costs for 2013 are estimated to be approximately $65 million.
The company said it maintained its guidance of 2013 net sales in the range of $7.7 billion to $7.9 billion, Adjusted EBITDA of $1.01 billion to $1.03 billion, and Adjusted earnings per share between $1.10 and $1.20
Analysts expect the company to report earnings of $1.20 per share on revenues of $7.83 billion for fiscal 2013.
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