Sealed Air cuts full-year sales outlook on slowing demand

Sealed Air

08/08/2023 12:55

Aug 8 (Reuters) - U.S. packaging firm Sealed Air Corp
 SEE.N  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)
 ((Kannaki.Deka@thomsonreuters.com;))