Sealed Air to Cut 5.2% of Work Force
Sealed Air Corp., maker of protective packaging and inventor of plastic Bubble Wrap, said it plans to cut about 750 jobs, about 5.2% of its work force and take charges of $135 million to $145 million in the third quarter. The moves, expected to save $45 million a year, come after the company’s purchase of W.R. Grace & Co.'s Cryovac food-packaging business in March. Sealed Air also said second-quarter pro forma earnings rose 4.9% to $41 million, or 27 cents a diluted share, missing estimates of 31 cents, as revenue slipped 0.7% to $670 million. The company expects third-quarter earnings of 27 cents to 32 cents a share, and 1998 earnings of $1.08 to $1.18 a share, excluding charges. Analysts polled by First Call Corp. had forecast 36 cents for the third quarter and $1.42 for the year. Shares of Saddle Brook, N.J.-based Sealed Air jumped $3.06 to close at $39.94 on the New York Stock Exchange.