Sealed Air 3rd-quarter profit rises on cost cuts

Sealed Air's net income rises in the 3rd quarter as cost cuts help to offset lower sales

• On 9:54 am EDT, Wednesday October 28, 2009

ELMWOOD PARK, N.J. (AP) -- Sealed Air Corp., which makes Bubble Wrap and other packaging products, said Wednesday profit rose in the third quarter, helped by cost cuts and lower raw material costs.

Profit for the three months ended Sept. 30 rose to $60.6 million, or 34 cents per share, from $9.2 million, or 5 cents per share last year. Excluding restructuring, impairment and other charges, profit totaled 38 cents per share.

Revenue fell 11 percent to $1.08 billion from $1.22 billion a year ago.

Analysts polled by Thomson Reuters, on average, predicted a profit of 33 cents per share on revenue of $1.08 billion.

The cost of sales fell due to lower average petrochemical-based raw material prices and the impact of lower unit volume.

The company raised the low end of its guidance range, but said it remains cautious about consumer spending, particularly during the upcoming holiday season.

Sealed Air shares rose $1.10, or 5.5 percent, to $20.96 in morning trading.