Sealed Air Announces Reinvent SEE Strategy
Reinvent SEE strategy to drive profitable growth and earnings power
- Driving growth with leading brands and packaging innovations for Fresh Food and e-Commerce
- Increasing operating leverage target above 40% per year beginning in 2019
- Embedding SEE Operational Excellence across entire company
New restructuring program to transform SEE into highly efficient company
Total annualized savings expected to be
$215 to $235 millionby end of 2021
Costs of program estimated to be
$190 to $220 million, with less than three-year payback
"Over the last several months, we conducted a thorough assessment of our
entire organization and the market opportunities available across the
global packaging industry. This assessment confirmed that we are well
positioned to continue delivering organic growth above our core markets.
It also reinforced the need to grow market share and move into adjacent
markets with greater speed and efficiency, as we accelerate returns on
our highly differentiated innovations. Through our Reinvent SEE
strategy, we will transform
"By improving how we innovate, buy, make, and solve, we will address our customers' most critical packaging challenges, lead the industry with sustainable solutions and make every customer a reference. We will create long-term value for our shareholders through consistent, profitable growth and increased earnings power."
The strategy focuses on four key initiatives:
Speed to Market on Innovations: Invest in technology and resources focusing on new and existing high-growth markets. This will double Sealed Air's innovation rate over the next five years.
SG&A Productivity: Simplify structure to create a more nimble and efficient organization.
Product Cost Efficiency: Expand SEE Operational Excellence across entire company by upgrading end-to-end processes: innovate, buy, make and solve. Drive continuous improvement in manufacturing and across Sealed Air's global network in areas such as procurement, conversion cost productivity, materials yield and network efficiency.
Channel Optimization and Customer Service Enhancements: Leverage Sealed Air's extensive distribution network to drive market share in existing and adjacent markets. The Company will continue to invest in digital systems and processes to improve cycle time and responsiveness.
New Three-Year Restructuring Program
The Board of Directors of
Existing Restructuring Program
Sealed Air's existing restructuring program, largely related to the
elimination of stranded costs, is expected to be completed in 2019. The
Company continues to expect restructuring savings and cash restructuring
payments associated with this existing program to be approximately
Total Restructuring Programs
From 2019 to 2021, total annualized savings from restructuring is
estimated to be in the range of
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in the Investors section. We use this website as a means of disclosing
material, non-public information and for complying with our disclosure
obligations under Regulation FD. Accordingly, investors should monitor
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This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 concerning our business, consolidated financial condition and results of operations. Forward-looking statements are subject to risks and uncertainties, many of which are outside our control, which could cause actual results to differ materially from these statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements can be identified by such words as "anticipates," "believes," "plan," "assumes," "could," "should," "estimates," "expects," "intends," "potential," "seek," "predict," "may," "will" and similar references to future periods. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results, expectations regarding the results of restructuring and other programs, anticipated levels of capital expenditures and expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings.
The following are important factors that we believe could cause actual
results to differ materially from those in our forward-looking
statements: global economic and political conditions, currency
translation and devaluation effects, changes in raw material pricing and
availability, competitive conditions, the success of new product
offerings, consumer preferences, the effects of animal and food-related
health issues, pandemics, changes in energy costs, environmental
matters, the success of our restructuring activities, the success of our
financial growth, profitability, cash generation and manufacturing
strategies and our cost reduction and productivity efforts, changes in
our credit ratings, the tax benefit associated with the Settlement
agreement (as defined in our 2017 Annual Report on Form 10-K),
regulatory actions and legal matters and the other information
referenced in the "Risk Factors" section appearing in our most recent
Annual Report on Form 10-K, as filed with the
Lori Chaitman, 704-503-8841
Julianna Jacobson, 571-236-4256