Sealed Air cuts full-year sales outlook on slowing demand
Aug 8 (Reuters) - U.S. packaging firm Sealed Air Corp on Tuesday cut its full-year net sales outlook, hurt by slowing demand as consumers cut down on discretionary spending in the face of higher prices, interest rates and rentals.
Shares of the company were down 3% in premarket trade.
The company, which makes food packaging boxes and automated bagging equipment, said it now expects full-year net sales in the range of $5.40 billion to $5.60 billion, compared to its previous outlook of $5.85 billion to $6.10 billion.
A shift towards service-oriented spending by consumers has hurt purchases of both durable and non-durable goods, reducing demand for packaging.
"We expect demand weakness to continue with second half volumes similar to first half of 2023," Sealed Air Chief Executive Ted Doheny said.
The Charlotte, North Carolina-based company, however, reported a quarterly adjusted profit of $0.80 per share, better than analysts' estimates of $0.67, according to Refinitiv data.
Revenue for the quarter ended June 30 came in at $1.38 billion, below expectations of $1.42 billion. (Reporting by Kannaki Deka in Bengaluru; Editing by Maju Samuel)
