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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 14, 2000
SEALED AIR CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
Delaware 1-12139 65-0654331
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(State or Other (Commission File Number) (IRS Employer
Jurisdiction of Incorporation) Identification No.)
Park 80 East
Saddle Brook, New Jersey 07663-5291
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(Address of Principal Executive Offices) (Zip Code)
201-791-7600
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(Registrant's telephone number, including area code)
Not Applicable
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(Former Name or Former Address, If Changed Since Last Report)
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ITEM 9. Regulation FD Disclosure
The following is a presentation to be given by executives of Sealed Air
Corporation ("Sealed Air" or the "Company"). This represents the Company's
present outlook for its business and is, of course, subject to change. See
"Forward-Looking Statements" below.
Sealed Air
A Global Leader in Food, Protective and Specialty Packaging
COMPANY OVERVIEW
Products
Cryovac(R)brand food packaging products
Instapak(R), Bubble Wrap(R), Jiffy(TM)and other brands of protective
packaging products
Business Model
Employee ownership
Technology
Customer focus
Global operations
Acquisitions
Capital efficiency
Financials
LTM sales through September 30, 2000 - $2.94 billion
LTM EBITDA - $690 million
Strategic Financial Goals
Increasing sales
Improving profitability
Maintaining strong cash flow
Improving ROIC
STRONG GLOBAL PRESENCE
Over 100 manufacturing facilities
Operations in 46 countries
Market, sell and service in many more
Reach 80% of the world's population
More than 15,000 employees worldwide
2
GEOGRAPHIC SALES BREAKDOWN
57% North America
26% Europe
7% Latin America
6% Australia/New Zealand
4% Asia
Note: Results for the year ended December 31, 1999
CRYOVAC BRAND FOOD PACKAGING
1999 sales of $1.8 billion - 62% of total
Includes shrink bags, multi-layer shrink films, non-shrink films,
polyethylene foam, absorbent pads, rigid plastic containers, packaging
systems
Provide superior package integrity, extended product shelf
life, superior gloss and clarity
Sold for fresh meat, poultry, cheese, smoked and processed meats, fish,
produce and fluid food packaging applications
PROTECTIVE PACKAGING
1999 sales of $1.1 billion - 38% of total
Includes air cellular cushioning, polyurethane foam, shrink and
non-shrink films, protective and durable mailers, suspension and
retention packaging, packaging systems
Provide superior protection from shock, vibration and abrasion during
distribution and storage
Sold for packaging a tremendous variety of industrial and consumer
goods representing over 400 SIC codes
FINANCIAL OVERVIEW
See the Sealed Air Corporation Form 10-Q for the quarter ended
September 30, 2000. Gross Margins have been relatively stable since
the third quarter of 1996.
MANAGERS INVEST LIKE OWNERS - BECAUSE THEY ARE
Management shares ownership with the investment community
Global management team and virtually all U.S. employees are owners
Entrepreneurial culture
Find innovative ways to capture value and reduce risk
Spend money as if it were our own
Driven to perform
Vigorous, fair competition
Ethics beyond reproach
TECHNOLOGY DRIVES GROWTH AND PROFITABILITY
Invest approximately 2% of sales in R&D
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Delivers differentiated products, measurable benefits
Guarantees market leadership
Generates high margins
Promotes development of:
New technologies
New products
Extends product lines to address new applications
Includes food and packaging science and equipment systems technology
in addition to polymer science, extrusion, chemical blends, printing
INTENSE CUSTOMER FOCUS DELIVERS GROWTH, MARGINS, CASH FLOW
Over 1,300 sales and technical support people
Over 30 package design and applications labs
Significant resources focused on sales, service and customer support
Entire organization focused on customer needs
Consultative sales approach
Understand the customer's business
Apply packaging solutions creatively
Sell the value of Sealed Air products "in-use"
GLOBAL APPROACH LEVERAGES INVESTMENTS
Offer products and technologies in many geographic markets
Provides access to greater growth potential
Provides better service for customers that operate in multiple regions
Creates a stronger competitive position
ACQUISITIONS COMPLEMENT INTERNAL GROWTH
Provide an additional source of:
New products
New technology
Accelerate geographic expansion
Leverage distribution channels
Act as a catalyst for internal growth
CAPITAL EFFICIENCY LEVERAGES GROWTH FOR ATTRACTIVE RETURNS
Capital decision making process
Rigorous evaluation of investment opportunities
Use of a variety of investment methods
Phased projects
Used equipment
Expense orientation
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World Class Manufacturing (WCM)
Reduced cycle time
Lower inventories
Improved customer responsiveness
Improved yields
Higher quality
BUSINESS GOALS - STRATEGIC, FIVE YEARS
Sales growth
Goal: mid to high-single digit
With acquisitions: double digit
Gross margin profitability
Goal: 35-37% of net sales
Continuous improvement through WCM
Commodity resin price volatility - relatively modest effect
Operating Expenses
Goal: 18% of net sales
Expense control
Organization and cost position from which to grow
EBITDA
Goal: 22-24% of net sales
Free Cash
Goal: 7-10% of net sales
Invest when possible, otherwise - return to shareholders
ROIC
Continuous improvement from incremental investments and leveraging goodwill
Goal: generally 20%+
Forward-Looking Statements
Certain statements made by the Company in this Form 8-K and in future oral
and written statements by management of the Company may be forward-looking.
These statements include comments as to the Company's beliefs and expectations
as to future events and trends affecting the Company's business, its results of
operations and its financial condition, as well as goals. These forward-looking
statements are based upon management's current expectations concerning future
events and discuss, among other things, anticipated future performance and
future business plans. Forward-looking statements are identified by such words
and phrases as "expects," "intends," "believes," "will continue," "plans to,"
"could be," "goals" and similar expressions. Forward-looking statements are
necessarily subject to uncertainties, many of which are outside the control of
the Company, that could cause actual results to differ materially from such
statements.
5
While the Company is not aware that any of the factors listed below will
adversely affect the future performance of the Company, the Company recognizes
that it is subject to a number of uncertainties, such as economic, business and
market conditions in the geographic areas in which it conducts business,
changes in the value of the euro and other foreign currencies against the U.S.
dollar, the success of certain information systems projects, factors affecting
the customers, industries and markets that use the Company's packaging
materials and systems, the development and success of new products, the
Company's success in entering new markets and acquiring and integrating new
businesses, the timing of capital expenditures, competitive factors, raw
material availability and pricing, changes in the Company's relationship with
customers and suppliers, litigation and claims (including environmental
matters) involving the Company, changes in domestic or foreign laws or
regulations, or difficulties relating to the euro conversion.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
SEALED AIR CORPORATION
By: /s/ William V. Hickey
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Name: William V. Hickey
Title: President and Chief
Executive Officer
Dated: November 14, 2000