Sealed Air profit plunges on restructuring charge

ELMWOOD PARK, N.J. - Sealed Air Corp. said Wednesday that its third-quarter profit slid 87 percent, dragged down by a restructuring charge.

The packaging products maker also slashed its 2008 earnings forecast, which sent its stock down $4.90, or 23.2 percent, to $16.11 in afternoon trading. The stock hit a nearly six-year low of $15 earlier in the session.

Earnings for the period ended Sept. 30 slumped to $9.2 million, or 5 cents per share, compared with $72.4 million, or 39 cents per share, in the prior year.

Excluding 22 cents per share in restructuring charges and other items, net income was 28 cents per share.

The charges included $60 million in severance costs for voluntary buyouts that were offered to U.S. workers. Sealed Air said it expects to report more severance and other personnel and facility closure costs in the fourth quarter.

Analysts polled by Thomson Financial predicted a profit of 38 cents per share, on average. Estimates typically exclude one-time items.

Revenue rose 5 percent to $1.22 billion from $1.16 billion on increased sales across all segments. The results missed Wall Street's estimate of $1.26 billion.

Chief Executive William V. Hickey said in a statement that its protective packaging unit's performance was somewhat hurt by economic conditions, while climbing resin costs led to price hikes. Higher freight and energy costs also weighed on the company's gross profit.

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