Sealed Air Corp., Elmwood Park, NJ, reported year-end sales of $4.84 billion, an increase of 4% over 2007 sales. Profit declined 49% to $179.9 million.
Fourth quarter 2008 sales decreased 7% to $1.17 billion. Excluding a $66 million unfavorable effect of foreign currency translation, sales would have decreased 1%. Profit for the quarter was $47.3 million, down 41% from the same period the prior year.
Although market conditions negatively impacted our revenue, our operating results reflect the proactive steps we took earlier in the year to manage our business in these challenging times, CEO William V. Hickey said. "During the year we focused on managing pricing and supply chain initiatives to address volatile resin costs. These efforts, combined with market conditions late in the year, resulted in the recovery of most of the year-over-year increase in our resin costs"
Food Packaging Segment The Food Packaging segment sales for the fourth quarter decreased 3% to $503 million compared fourth quarter 2007. Excluding a $31 million unfavorable effect of foreign currency translation, segment net sales would have increased 3%.
The increase in net sales primarily reflects favorable product price/mix in North America and Latin America. This increase was partially offset by a decrease in unit volumes primarily in Brazil. Although more Brazilian processors have been authorized to export to Europe, a decline in consumption, attributed to weak economic conditions in Europe, has reduced the demand for Brazilian beef.
Food Solutions Segment The Food Solutions segment sales for the fourth quarter decreased 5% to $237 million. Excluding an $18 million unfavorable effect of foreign currency translation, segment net sales would have increased 2%.
The increase primarily reflects the positive impact of product price/mix in North America and unit volume growth in the Asia-Pacific region. The increase was largely offset by a decline in unit volumes in Europe due to reduced fresh red meat consumption as a result of challenging economic conditions and a decline in unit volumes in North America due to a previously announced change in a packaging format at one retailer in late 2007.
Protective Packaging Segment Protective Packaging segment sales for the fourth quarter decreased 14% to $339 million. Excluding a $14 million unfavorable effect of foreign currency translation, segment net sales would have declined 11%.
The decline was primarily due to lower unit volumes in North America and Europe, which reflected weakening economic conditions in those regions. The decline was partially offset by the positive impact of product price/mix in all regions.
Other Category Sales in the Other category for the fourth quarter increased 2% to $90 million. Excluding a $3 million unfavorable effect of foreign currency translation, Other net sales would have increased 6%.
This increase was primarily due to the positive impact of product price/mix in North America and Europe in the Specialty Materials business and the acquisition of certain assets relating to polyethylene foam product lines in November 2007.