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Sealed Air posts 3Q profit, revenue rises

The Associated Press

NEWS: Food packaging company Sealed Air reported a profit in its third quarter, bouncing back from a loss a year ago when it absorbed a large one-time charge.

Its adjusted profit and revenue topped Wall Street's expectations. The company also boosted its full-year adjusted earnings forecast and narrowed its revenue outlook. Its shares jumped more than 8 percent in morning trading.

DETAILS: Medical applications and new ventures sales increased 4.3 percent on higher prices. Sales for the product care division climbed 3.6 percent mostly on better volumes. At the food care segment, sales rose 1.7 percent on increased prices and higher volumes.

NUMBERS: The Elmwood Park, N.J., company earned $37.7 million, or 18 cents per share, for the three months ended Sept. 30. That compares with a loss of $1.23 billion, or $6.38 per share, a year earlier.

The year-ago period included a $1.33 billion charge for the impairment of goodwill and certain intangible assets related to Diversey Holdings, a cleaning and sanitation services company.

Taking out restructuring charges and other items, earnings were 39 cents per share.

Analysts, on average, expected earnings of 33 cents per share, according to a FactSet survey.

Revenue edged up 2 percent to $1.94 billion from $1.9 billion on higher prices and increased volumes. The biggest sales gain came in the region comprised of Asia, the Middle East, Africa and Turkey — up 6.9 percent. Europe reported a 3.5 percent increase, while North America and Latin America posted 1.9 percent and 1.3 percent rises, respectively.

Wall Street expected $1.93 billion in revenue.

FUTURE: Sealed Air now anticipates 2013 adjusted earnings of $1.25 to $1.30 per share on revenue of about $7.7 billion. It previously forecast adjusted earnings of $1.10 to $1.20 per share on revenue between $7.7 billion and $7.9 billion.

Analysts predict earnings of $1.21 per share on revenue of $7.75 billion.

STOCK: Its shares rose $2.36, or 8.2 percent, to $30.88 in morning trading. Year to date, the stock is up 63 percent.