By Emon Reiser

Sealed Air swung to a loss in the fourth quarter and saw fewer sales as it reorganized its food packaging and protective equipment businesses.

The Bubble Wrap maker on Tuesday posted a loss of $7.3 million, or 5 cents a share, compared with a profit of $124 million, or 86 cents a share in the year-ago period.

Stripping out certain one-time items, Sealed Air reported adjusted earnings of 75 cents a share. Analysts polled by FactSet were expecting 67 cents a share.

The company reported an income tax expense of $85 million and said it was unfavorably impacted by the one-time write-off of a deferred tax asset tied to a legal entity restructuring.

Sales declined slightly to $1.37 billion year over year for the period ended Dec. 31 from $1.38 billion in the year-ago period. Analysts polled by FactSet had expected $1.36 billion.

Sealed Air said net sales in its food packaging segment increased 3% to $923 million. Sales in its protective equipment business decreased 7% to $450 million, impacted by currency fluctuations.

"With the foundation now firmly in place, we are focused on maximizing the potential of each business based on their respective end-markets and portfolios," said Chief Executive Dustin Semach. "We are accelerating the momentum in food by expanding further into higher growth end-markets with our case ready and fluids solutions and continuing to stabilize protective."

The company guided for full-year sales of between $5.1 billion and $5.5 billion. Adjusted earnings per share is expected to come in between $2.90 a share and $3.30 a share. Analysts expect full-year sales of $5.38 billion and adjusted earnings of $3.13 for 2025.

Write to Emon Reiser at emon.reiser@wsj.com

(END) Dow Jones Newswires

February 25, 2025 07:33 ET (12:33 GMT)

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