As it readies to spin off about one third of the company, Charlotte-based Sealed Air reported third-quarter earnings that were up from last year despite a slump in sales.
For the three months that ended Sept. 30, Sealed Air reported earnings of $139.1 million, or 71 cents a share, adjusted for tax purposes. That figure beat the Zacks Consensus Estimate by a penny, and it was up from 70 cents a share in the third quarter of 2015.
Sales totaled $1.72 billion, down from $1.75 billion in the third quarter last year, according to a securities filing Thursday. Sealed Air cited currency “headwinds,” as well as a slump in emerging markets, Latin America and Asia for the overall sales drop.
Sealed Air, best known for selling Bubble Wrap, has said that the boom in e-commerce presents major growth opportunities in packaging products. The company is in the midst of relocating from New Jersey to its new Charlotte headquarters near the airport.
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The company last week announced plans to spin off Diversey Care, the cleaning products company it bought in 2011, as well as the food hygiene and cleaning business within its food care division. The move, Sealed Air has said, will create two leaner and more efficient companies. Both will remain in Charlotte.
“Despite softer sales growth in the quarter and for the full year 2016, we continue to expect performance to improve on both the top and bottom line in Q4 and throughout 2017,” Jerome Peribere said in the filing.
A Fortune 500 company, Sealed Air broke ground on its new Charlotte headquarters in summer 2014. By the time the company finishes moving into its new corporate offices in 2017, it expects to have a workforce of nearly 1,300, with local hires comprising more than half.