SEE - Earnings call transcript Q1 2022

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Operator

Good day and thank you for standing by. Welcome to the First Quarter 2022 Sealed Air Corporation Earnings Conference Call. At this time, all participant lines are in listen-only mode. After the presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised today’s conference may be recorded. now today, hand ahead. Louise would to conference I host your Lagache, Instructions] like the to over [Operator Please go

Louise Lagache

you, Chris everyone. Doheny, morning, and today Thank Ted are With our our Stephens, me and CFO. CEO; good

would Before to we presentation guide note slide like our we a call, discussion. provided that our to begin I have

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find on on final reports current Form and GAAP. performance report of annual can these our website U.S. Additionally, do our not X-K, that the listed updated measures Many our report XX-Q you which also of SEC and revised on recent are website. most and may discuss number a future on as our on in Form factors factors. or XX-K on quarterly to Form due We conform differ to

GAAP Ted. reference corresponds GAAP use on presentation, will that the presentation. Ted? the to important today's GAAP find now will Slide appendix this to measures to results Operator, in U.S. over X. the we our our financial will information these included throughout please in turn reconciliation find you and call I release, You U.S. of measures turn their earnings non-U.S. to of

Ted Doheny

detail quarter recap Chris outlook. Louise, I results will into earnings digital dive first our thank our a transformation. our provide discuss XXXX delivered and X, and quarter revised the After the you disruptions and world. you inflationary outlook. XXXX I all strong then more On our performance numerous we see that, our will for by deep sustained despite of Thank caused our and results and call. our first in pressure earnings financial Chris and volatility you, around and QX XXXX will Slide sales review can

Our SEE flow to $X.XX, cash cash as a Adjusted Slide $X.X of were million. our up In billion, sales productivity. up quarter, adjusted can we was of engine operating compared you was On support share operations EBITDA is growth performing. up million for was XX% per year a QX use SEE operating net to and ago. model. X, our and $XX continue Free invest see in XX% up to to XX% to the $XXX earnings

X% to presented quarter, achieve aim As the years. last sales annual to X% growth three over we next

targeting digitally online to are have to to more of XX% XXXX. than have X% to by of total growth be We targeting also generated sales our generated by XXXX. We're this be

SEE operating our of X% EBITDA to for to conversion greater $X.XX X% operations model to updated sales. in increased expenditures than our We to approximately with X%. are cash adjusted targeting free at capital We've our growth flow align

Chris are and will XXXX we guidance, in later. sales earnings more Finally, our and about raising detail talk this

to serve. markets solutions transitioning faster delivering sustainability and a we through automation, value company, to than take Slide turn savings to look our a engine creating our customer-centric market X and and the at to Let's markets. powering We're grow digital

markets. across strong of on you markets. most While Chris will more give our top geographic I experienced sales in will performance, our focus activities our detail on performance We

than sanctions constant dollars imposed for equipment on continue were to shortages We and and system sales sustainability I Equipment this, impacting flat to generate demand want automation, In solutions. mainly QX, highlight business. our Russia, to our in Food compared increased led digits component equipment and Despite up were continued year, digital due strong were and QX this even XX% while more be challenging quarter, doubled to than double equipment by bookings to last AutoBox. in up strong that environment. food bookings more a AutoBox demand bookings in

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Slide X. me to Let now turn

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and the goal and the solutions scale them To for to Our produce, suppliers leveraging packages this with are of make price world-class billions we offer partnerships impossible is customers. the sustainable. make at best we right

innovations and in are economy. game-changing sustainability help loop the on automation the designed digital, circular to Our close

these customers' consumers across eliminate simplify SEE with harm's home. can printing, and our entire and operations people now digital to prismiq internal touchless In at connects developing processes this Our network automation is to from our we our loop, waste, We're way, innovations ecosystem remove our and move SEE momentum. team gaining our operations faster.

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Chris Stephens

everyone. Thank you, and good Ted, morning,

while were XX% and trends and XX% QX, can response care in Most Americas are with were formula of to sales actions growth down to price to XX, In of our by Food review and In a QX region, XX% realized organic net APAC in Protective. by Protective. pass-throughs. XX% These to by and $X.X volume up On volumes XX% you sales QX, XX price was inflationary was XX%, XX% Let's billion. to growth and In prior share QX see up with pricing and up pressures. actions price X%. were ongoing EMEA start on up in X%. XX% sales favorable up By was and segment XX% in net Food region. by for dollars, was in up price result Slide overall, quarter sales Slide the increase growth region. gain first segment net constant

X%, normalized and are Food was up trends money we up were to working customers productivity. Protective and always, their up X% directly declines demand X% strong save performance. given with in discussed driven the volumes of present As X%. were Americas 'XX. quarter. On demand Slide increased down up EMEA X%, price APAC margins points. $XX XXX adjusted by QX drive our all mainly Having needs, consolidated EBITDA this by driven $XXX to of our loss. we with XX, already year regions, basis million with down their volumes million while adjusted EBITDA and sales, EBITDA QX sales our XX.X%, or last realization me achieved let We adjusted positive comment compared on QX XX% in meet

compared to continues and year labor million impacting However, rapid non-material $XX a $XX rate, ago. by million rise year-over-year to at earnings inflation a

of 'XX. $XX of in productivity to QX million costs operating to in realize and approximately compared from XXXX. $X.XX addition, and on to investments $X.XX QX of totaled earnings completion per was gains the gains Reinvent in negative engine our QX remain support Adjusted track performance SEE million we includes operating initiatives diluted SEE Productivity $XX future In growth. of share $XX million in incremental

an were stock Our rate to approximately was at XX.X% XX.X% million quarter repurchased with X compared adjusted We the same buyer the period of shares million. in active our year. $XXX tax last valued approximately in

million million average weighted shares repurchase 'XX our $XXX.X At were we in diluted end, outstanding compared $XXX.X in share had $XXX quarter 'XX. million QX remaining Our authorized QX program. under to

million of Turning Automation sales Food. in parts compared up systems, with were to XX% segment of In basis QX, increased XX.X%, Adjusted was starting approximately and XX% at $XXX margins price, of with points. and $XXX XX, dollars. volume net Slide contributing the million X%. year, for Food last equipment, to Price XXX digits positive segment up were on to was year-over-year, all sales, in with which results in regions services mid-single the up while constant includes X% quarter. growth up sales accounts XX% EBITDA QX

increased decline side, in the demand on regions XX% Protective quarter while sales to of all the in was quarter, an normalized organic positive million basis. up as faced a of contributing we price, Price with XX% again, X% volumes saw $XXX On net trends. the

rebound were a e-commerce first end in year, the up fulfillment, markets volumes industrial strong by reminder, XXXX. in quarter following the growth in As of Protective fueled XX% in COVID last shutdowns the and

up X% of the XXX the for basis EBITDA $XXX in were in for increased points. which at the quarter. margins As double of sales QX million automation with in segment's accounts up digits quarter, XX.X%, XX% Adjusted they approximately sales,

to cash This turn working three largely the flow Slide million source million first cash of Now of the ago. $XX a use XXXX, compared was months swing In same cash million of a cash free returns increased in profitable to year was QX to 'XX. of CapEx productivity, the flow $XX $XX driven by federal of let's XX, on on XX. period on free plus growth we capital needs, attractive maintain allocation value. in tax million while absence of supporting strategy creating $XX a growth Slide and capital focused capital economic purpose-driven our a refund support strong and sheet initiatives. driving invested On balance We outlined a

touchless CapEx sustainability. focusing and are automation, our digital We on

many we growth printing noted, are expand and smart opportunities digital packaging and and As attractive see to investing geographies. our in markets in presence Ted

Slide review to XX XXXX our updated turn to Let's outlook.

net We for are strong and guidance, the reflecting raising the of sales QX remainder earnings our performance the our and year. outlook

billion For net $X.X range. $X.XX X% of to reported our $X.XX estimate previously to now $X we compared billion, billion sales, year-over-year to billion X% a provided to as increase

Our EBITDA billion. of $X.XX to of margin expected and at to in the the organic grow adjusted volume X% EBITDA be is guide approximately to which assumes now and $X.X approximately in is EBITDA X% growth previous forecast is to price year XX%, X% midpoint. X% $X.XX in compares our Full $X.XX to adjusted XX%. billion. an This expected range to billion of implies XX% billion to Adjusted

and interest outstanding. approximately outlook million. range $XXX to free expect $XXX approximately shares in effective be in an now approximately assumes million we cash is $X.XX. expense million to of lastly, are of XXX $X.XX This amortization and of reiterating to EPS, adjusted for tax $XXX the adjusted which XX%, $XXX And we million the approximately net depreciation of and million range flow, For rate of our

and So now model. let operating around in on cash outlook. XXXX business QX we is in SEE that, me back Ted This our remarks. our and to revised reflected With our call productivity the aligning closing are summary, for executing driving strategy, pass and performance the Ted? generation

Ted Doheny

Chris. Thanks,

where XX, Slide statement. to have turn purpose our Let's we

everything is we This how we centered our reality. vision ESG guides do. company, a are making our an purpose As

momentum Our SEE maintained of and proud disruptions operating is and inflation. I'm team's efforts engine considerable and operating perseverance despite performing challenging sustained our in times.

are Made in to and productivity our about automation, customers. deliver Packaging our to out more savings continue where Brilliant prismiq, website to Digital full see launch and digital going. our we Please invest sustainability We for visit

find We of to stakeholders that, I'll value questions. making Continuing drivers call deep session. it. quarter, Q&A we long-term With deep the now next our are into dive our sustainability. like plan we creating with and digital Operator, to for our into begin for open automation, theme world a investors growth and dives of we'd better than providing the sustainability, provide the

Operator

[Operator Instructions] comes first America. the Staphos with question Bank Our George of from of line

line Your open. Please is go ahead.

George Staphos

you couple you double want just of And to I I guess, wanted investment your and digital to said but and digital the $XXX that one, to ultimately to in dig question, prismiq. into parts I a million. want to reaffirm, over

if you You've already put in to XXX% $XX million in presses like expect your have then XXX%? the correctly. XXXX, when get and want somebody that? digital, be you what to proprietary, you proprietary, -- to at whole One, by heard proposition customers? relatedly, moat prismiq Or large we for you be very said I how to And it would you is and could what is within a replicated totally value around

Ted Doheny

question. prismiq And Thanks, you Great. the George. opened excited with up I'm that is

on to X% a try I bit actually were of But play to we in for points digital looking we little the some said back want model, you of just to to bring But growth that to the our go color. additional -- online digital, are sales XXXX. use if looking highlighted slide on I'll you give actually couple so XX% differently. by XXXX. operating an So A

printing picture prismiq years we at and you the the made ago. technology if is bit -- of more bought So print actually now is of deployed. look back about we Slide about that $XX the largest is since $XX the we the it's specific actually million million your this already just And on on a question, the we've than three one digital press there talked we've to the proprietary investments X, that little see

factor press. to numbers The other Simpsonville under of -- the digital press, now is It's could largest facility, I our the printing, part by the and picture actual really single this three digital printing, about. This But color in that's actually and of actual what's most talk and current at is an already actually doing And the exciting. printing for about biggest We're going some which enabled turn those that have beyond now so years, in we've reducing also This printing our the exciting. capabilities of by from Full is mailers investment what's those calls We just of right the facility. phone just XX the is that's is our color press one. the clarify next looking to exciting. unique food back invisible have the a bit smaller our one this, is color in what about excited Illinois changing XX. versions and whole is had operations could a printing, deployed this, to in at probably been metallic in with there. extremely customers of actually the printing plant for exciting little the the actually, pretty the mailer, we're deployed. operation especially single mailers, looking packaging But digital. This world. us, footprint, is out we've which printing it's this This We've per footprint ink. we color requested press pretty

excited. work up with, that more we pretty and Great so coming so track traceability, much can question, And can that exciting. but we with on really that digital excited, really follow

Next question please.

Operator

Our from Samuelson line question the comes Adam of Goldman Sachs. next with

Please go open. ahead. is line Your

Adam Samuelson

quarter. trends a help half? bit around just you the back balance by maybe little to the that balance the positive takes Could in that seems It year, hoping the we dig cost of go about over forward. was kind year, the bit the better to year-on-year over both you're on first and performance was I the thinking how price of in us offset So in a and little of some notably expectations maybe about expecting just that, quarter second and the spread volume quarter pretty like some key think kind of as moderate puts of the

Chris Stephens

good. Yes, good Yes, question. a very

realization that just maybe So continued cost just off comment momentum that price coming into QX. QX favorable a QX, on of in price spread

were that very to do We'll in in contribution a being your first our that we into terms results. to But the QX. of point, pleased overall we benefit quarter spread. with cost as see price QX going So, strong to performance continue

side, The we're second which the at half in material anticipating of of the second to of half. the material more inflation be on the of inflation, X/X seeing least half year moderation, since think, the I really, most to that first the than year the occur

managing as just we working quarter-by-quarter, expectation it. So, that's around through work spread, price how cost we're that literally through

some your guidance So the moderation implies, in in half there will second performance the of but terms of strong year QX to point, out our for be of the back.

at the provide look full year. And guidance full to in we're into year the of commentary strong wanted guidance. anything some overall some Ted, position add? basically we favorability QX the a reflect year So, updated to performance, to our full given to around

Ted Doheny

Adam, in industrial me, actually, doing just talk there shout Goldman the the week, Officer, you out space. to our a to the Operating And with bring of Yes. we're and Sachs cool in about Chief things some next conference going and I'm be

look we want that's the just to As I really us. to important volumes, highlight at do something

gain you'll here, price we're pricing Slide realization. the care with that term we share. at XX, explicit The use and to If look you notice very

first much was going quarter tremendous price realization, we internally. we resins pressures price actually had give look is first that which a the we pretty positive And everything. so inflationary the actually to was formula realization the beyond you quarter this This at how

beneath of the the on last you just that, our in highlight just we was that side, highlighted, dealing give first comparable as to going if to I markets, So at volumes, color what's Chris look with some But significantly. up on we're the want that. Protective with the year quarter

still another what if didn't and really I'm the I'll on. question had in the had materials So on get a our we shortage, we we look take at the sure side, a that With backlog automation, some we ship. the constraints missing that with on volume constraints of and

And when -- so The had we'll biggest a on the on we the really half our the year-over-year Protective quarter excited at where biggest the coming mailer from still actually actually side. about Slide already new away. in you if mailers. we But of volume the there. going ago, but The a hit that mailer introducing X, year drop looked bubble paper paper, property, That wrap see bring surge an a wrap, a from the we're paper that second right automation a giving we and Protective with that year, going product now we're is We're place, working significant. with have one proprietary to bubble We mailer. is a this play. wonderful e-commerce and in got out was

we're the the So, shift so year to volume pick up to year. in of of targeting at we that strong some end could the the get that pretty

The other while, strong strong in of go is the back. over markets, had we portfolios and in Slide if us of seeing of as we not up after part followed the the our we The a X% was, those quarter that came on working it back the all with who Protective industrial E-commerce that at if side I one Instapak, still margins XX% industrial year-over-year, Instapak. look Instapak. industrial Instapak And strong back on very but come X. space, as want who to highlight space our know high customers, for growth our you going was to

the ups ready, market top the side side, our well. despite the if in positive we mention very red talked to with of a volume our aggressively about second that lots our red the if moving of side. was still and it's do the side driven, we year meat look the quick But say, processed but around downs, on the smoke Protective I highest Though quarter. volume was almost at remember up the the market want of we on on service, was world. and fresh during growth in and smaller meat, despite the was case all on on liquids. Food down on as our cautious, are the restaurants and still portfolio, shutting of meat in food in I'll part you constraints strong, up So where half actually proteins see XX% pandemic, the our our we Food's

our things on up, lot cetera, the -- quarter. we're down, the going et -- going industry high X%, also Chile, seafood the side, things food on that. the transmission from actually in our actually food that into oxygen shipments market of share, quite small So -- use the automation down A XX,XXX was side, in Alaska, Norway, but it down rate the for that those But was know bringing in well. quarter, the

we going growth. second think So half, to Very portfolio, broad got in about the half, we the some we've drive on second up. feel to that good of go that's

so we cautiously optimistic And in drive we're half volume can year, the okay? that of the second the

Operator

question KeyBanc. our with Adam line from And of comes Josephson the next

go Please open. is line Your ahead.

Adam Josephson

walk were through question really on X% your So growth one quarter. think change good months months I from me you the Chris, you ago? just volume ago, a volume for expecting Congrats about year. the on Can guidance. three three

us Now much industrial we the raw and you mentioned? that you three Amazon's material Thursday. on of changed and How the is expecting is buckets e-commerce any is elasticity prices? months walk ago? through global demand just higher from the one. How Can saw what you're much Obviously, automation constraints slowing. economy that from slowing, much How about these report

Chris Stephens

and did have slight the to has change a we your And point, really, volume reflected. Sure. on assumption

automotive we just our say into So end constraints any of are in of one digits, more kind the out of the maybe we're first right still here number muted side, I first of impacting especially it's some industrial low full organic individual X% industrial execute as as now. we clearly open looking It's as to wouldn't us -- Ted at. somewhat all things the the does as think automation part this through went resolve the to X% year a we strength in start give as and of came kind supply the there's guidance that about. still quickly portfolio. us that The continue to How with our more up. thing. into in as portfolio you markets, single get X% end combination a of we on the through markets, as Clearly, is the itself the year things Then momentum side hear half.

answer so, one question. And no particular that to

we see to I full volume felt how X% X% like in look today. just we think year, as the growth, this is to this more it X% we range

Of update not of of combination as that a But each evolve. will it's we one quarter host course, we items, a for any item sure.

Operator

Thank you. Maria of De with from Larry question And our comes the next Blair. line William

ahead. is open. Your line Please go

Larry De Maria

further just think competition provide be this will said it color a How can market? do it competitive ROI you on position the needed of can and Nice as advanced it's the the some But to kind update give over is? in provide how prismiq footprint, et you digital you and you Thanks bit ROI? and for much cetera. the differentiated obvious on Obviously, little job, versus everybody. the have Can transformation is? see the utility What perspective offering. new

Ted Doheny

the years Larry, ago. three we digital position, The have that we in it competitive non-technical actually technology bought Yes. we way. printing proprietary my describe have, technology I'll

print materials. position. formats, ability to our think printing shrink, on heads at floating multiple digital actually different that why flexible speed. they they formats that can And we're and different go layers And with that's high having We we the the high multiple unique change speed, really ability at have over materials, a actually unique for is in

competition ahead that. on are we the So, of we think

we and we and have to think why ahead, that we That's so we have faster. that's that's now invest And got are actually go why partnering. something we're we right faster, to why

we announcement that take saw another very You quick. quarter digital with investing so globally in go and the printing can Foxpak, capability last this

we Our phase the is operations. facilities. into automation put to is initial already in this their we're our their But dealing want printing into They'll packaging actually internal digital automation be with plants. with customers putting

scalability scale very The on we're especially working can ahead. so So software I the we background, world-class on side, with we quickly. the shared, very, suppliers, we're think as

we're that That think daily I we much going we're gave and actually digital it ahead, faster. are. So, we're measuring sales our with ramp-up be number internally driving teams what on that to our

and going this what excited year. that's pretty mean affecting So business start our to

Operator

our Baird. comes next with question the you. line Thank Panjabi from Ghansham of And

line is open. Please Your go ahead.

Ghansham Panjabi

is chain, touch to just then sort the along industrial be your sales in impact Sealed from just COVID on Air? back even impact designed on terms your think the How you on going about a business, And benefit? food and mix boost just high-level Maybe could Is of additive specific of you topical at us prismiq, business it maybe have to the productivity would this events it some China Europe. point a standpoint, in supply the of the to growth? potentially

Ted Doheny

first, step go me Let Ghansham.

that remember I issues. the of go So before I some through

on we're it's growth line the So, as to think add model, put going we top a we it actually in that. additional with

business. we've do capability it's So, the think to we'll printing. see shown can customers cost that a of and And in what also also, We side. the added our we

see what's in inside, will the about able you big our to digitally the top the tell there on of and what marking mean, to you the meat, on store. information can printing you all If of on you digital We're that they you see print be a everything. all when piece be visualize going paper Even your if does package, slap label ready, meat material. smartphone look to at our now right everything labels case able that

question, and cost of the capability. question, part first going printing the digitize as customers the we sales. of But second to your your opportunity huge there's part us additional drive it's a our for So,

So out there, but put the modeling? Other help drive quite It's our there. a about that that piece out deep the on it's number issues, just constraints. just some resins and to We going you are line think How you still the both. the putting well, going breath that into I'll to Ghansham, we're us high-level our talk a take there, when know, still constraints help we line. as is it's top bottom us of

side other materials use now But still stuff. resins inflation We the quite should special it anticipating right curve. of time are is the that We on and be our strong. some

that. specialty feeling So chemical suppliers. with we're a a still in our situation ration of We're lot

as where with On growth automation for the us, the just struggling the We chips. business, huge like we automation links directly And that the automation of Russian conflict. of we're where are. many see into driver again, other got companies with issues the a side is components,

We right leading that's Russia from have stopped. in automation some been actually of now our automation

to another in team China headwind. I showing this is with the just our lockdown that China So in as had We've COVID. talking was morning. China up headwinds

actually XXX have in largest going China providing to We keep them the in to and facility in we're housing operation our safe. plant people that the keep

lockdown is that significant. so And

underestimate but all don't how are hitting are total, now we I challenges the fighting second that who think coming. want is small get we're the piece those, percentages the where significant pretty in More us volume to the successfully, these right one think we'll of are. Now But knows? it's half right but that now, But year. these we of challenges of each through through

Chris Stephens

see demand, we kind Ted's quarter, in X% potentially as these lost thinking add viewed recognizing about have comments, QX, given X% constraints do just could still for these the if just Yes. evaluate the maybe just evaluate, opportunity do been there. better it's is And we us the what organic how we to to to volume, right. the Probably moving to of weren't we but that was

in move the terms And when quarter assumptions ability wanted February our we organic of execute a in in think full to our -- guidance XX-XX. earlier X% established the kind then continue we to at is was going year of terms going X% X% thinking from the right comment in that, our also change somewhat. So X% as things right roughly shifting XX-XX. I to to about earnings outlook, that just the the the profile on back that for for down to to the growth. more look year, to we're more now, And putting pressure we in an on than question, as of about put also first

So provide we're it things get to and accordingly. And going to some obviously better continue manage obviously upside. could

potential range. that those Page of positives guidance, of the higher do in the want we downside our provide as as negatives the would to when we well our XX, guidance potentially on our provide give So, end

Operator

line next with of Mike from Roxland comes Truist Securities. the Our question

is Your go line ahead. open. Please

Mike Roxland

a good on Congrats very quarter.

to Just you're want part based. expanding that any on-demand second Company's agnostic, material the elasticity, the and then in prices And is just to the around continue question get questions. just of I recognizing thoughts about increase two sense inflationary quick your fiber ability to given the the environment.

desire expand slides of last quarter, in in I the mentioned think even and XX% material be if that so, why a your was any fiber, to And would quarter that? you this like focus? that

Ted Doheny

Yes.

volumes. last you if and can one, come look in take some slide, the the Chris to me at So of let that

So there, that yes, XX% have if our the used we at we we're agnostic. fiber the look based. you And term ecosystem materially

the mailer with a that the had mailer. about before, If we you our to mailer, been plastic example talked mailers bubble film-based go traditionally, wrap

we're wrap. moving -- that to we bubble earlier, you As described a paper

for the So push we solutions. see strong fiber-based

with food can aggressively in side, product side. bring into our help customers -- fiber-based you a are the working we're On us a that coming trays, take product, can asking with you food compostable the recyclable quite the that us,

So, we in really exciting that developments some have area.

internally, that XX%. question, the to to we're take up looking answer short number the over So be to

Well, And is AutoBox -- on see about the our our into equipment AutoBox fiber-based growing And the actually in solutions that. AutoBox is through side. up. the so cardboard, mentioned opening solution. you'll my paper, AutoBox comments sales going pulling I fastest

that move to up. So help number that's going

should share will is that of don't XX%, year. XX%, hopefully, of I number So with year? Chris, of the to the by to moving but we you know, north end if there the be targeted, end by you... get the at

Chris Stephens

None.

Operator

of comes Our Pettinari the with from next Citigroup. question line Anthony

Please is go line Your ahead. open.

Anthony Pettinari

out? of you talk you assuming your You about do And second are half availability assume Or you following year just up from some basically earlier is flat assume sort do inflation? of improved the of the just Can on then resin you resin. on comments, same? Just are clarify guide? further more to maybe PE of specialty currently resins sort scarce? updated maybe underlying Or for the that here in in costs assumptions anticipate on full

Chris Stephens

Yes.

question. good So

incremental given around price see. the all I are not an change are year assumption we price guide, as material anticipating only in raw the reflects pricing be So getting just availability point the of look if resins hopefully year to as or better in the specialty mentioned commentary. that from the view well guide, the that in the to Relative you what at to earlier we full think as a we and side, costs our But continues we're and for million, at February we least better, to now in getting inflation said we here elevated, full $XXX updated what saying that anticipated change anticipated underlying $XXX full for more the continue be million $XXX continue like May, in the roughly the and on million material Anthony, going roughly guide we're year. to looking assumptions

Ted Doheny

our are with pretty -- our and And bit some actually now understand we that that has done Anthony, with you resins. our our CRYOVAC get. some redesign and the barrier, team more incredible resin just of And do right just They're especially There rationed. of a We on resins you clearly. can't resins pieces color those the specialty use little brand.

So have into of to when don't of we opportunity second year material see demand, we half of market. what but think actually share that we'll in redesigning the some gain meet in the volume, coming you some when back that an that to share we see have the

some pressure. are So our had the the The part half second And now, but especially continuing with that through energy. of paper see issue. We're the some the we our year. potentially is now with we side, on products And paper Europe, seeing Europe, in of significant half. market we're upside on working in think our We paper right teams. inflationary side also share second the with seeing that we've inflationary

So to year, see positive, that for it inflationary and the we sure, entire want through the year. of keep half again, moving our price through pressures, still but planning realization, first we're to see the we

Operator

of with Christopher next from Mizuho. the Our Parkinson question comes line

is open. ahead. line Your Please go

Kieran De Brun

through of look out to can at some on for Kieran is the track that quantify it just opportunity in like may And additional me any year for the briefly, I you time, to been productivity the trending like been there you've where seems It seems I a view seeing time walk expected past those executing just through areas well that quicker And target on. are was you're than how XXXX. we further But of initiatives you over out? you're 'XX. over then This that have you there's going -- probably on even preliminary achieve wondering where Chris. understand or greater just if opportunities? while here when terms portfolio this thoughts and you're working

Ted Doheny

Yes, it's a great question.

what's about realization if If touchless what inflationary and producing cobots of operating you been And quarter, just you the at if because been from internally. go XX, at to lot ecosystem right our in as currently we automation slide, we our the pressure. SEE of we're network, talked But going productivity the we're a engine, shared right now hundreds talking talking we've look robots now, look the operations Slide dramatic around price world we've underneath working is on the about world. around operations. I last of to we about driving our have facilities today, When our we're that in where that,

going next to number the thousands. we're three take Over years, that to the

the realization, the we're significant the at in engine it's that's is some business. making environment, productivity now. And inflationary our seeing but quite well. productivity it's we're So doing process look you that productivity today, the that's Though that our we're what if underneath right at about underlying performance in actually price driving looking

our faster So, of we're customer. on some those bring can and more to that. we help printing even actually internally that actually production both savings Digital our even simplify can production going

absolutely. and we this about to going term, margin question the dramatic years outward expansion in think your That's through the increase we is once to get drive long where continue our So really inflationary pressure. productivity our

Operator

Our next from UBS. of Spector comes the Joshua with line question

Your open. is ahead. line Please go

Lucas Beaumont

on This for Josh. is Lucas Beaumont

to backlog AutoBox wanted products. your the So to in just back I equipment go

backlog. in there pretty had You've the increase big a

if could wondering the about talk Sealed just gives edge bit what Air you there. was I more a So,

of box I some have So focused the sizing companies think also systems. kind paper of competing

talk edge your So, of sort could bit wondering I is. makes your products different a what if you about where was and sort of

Ted Doheny

question. Good

to appendix. help in slides the the we're keeping on automation, deep focus, for dive So that not the the but

red behind you to bookings go the see continued And in if want amount the that, Russia if so you digit, Russia. slide, to the sanction and huge XX, at quarter, on to be of got was So as on automation, constraints. unpack our shortages, equipment double equipment our Actually only component a you just we got we year-over-year. we've three Slide a affecting spending up the some see of the in But and the and food meat X% now, can years. both in in then we're equipment actually capacity of of we've underway right our the quite lockdown FX is bit doing had What also Russia, our this we we're next where we China and double how over in fresh equipment the business. automation got actually success have do is side, some cheese and we

automation of is using suppliers equipment our The other some growth. might space multiple we're little drive help different the in be to people that bit a the other than piece

our So we to bookings to match continue double we have potential growth in to We want for this well a this. sales be the think high digits trends. on

I'll slide. one to So just go

can you slide, see you what this go just so to the next If means.

quarter. the of that solutions of in last about I the examples talked two multiplier and example the Here's

of First on done just all, the quite one, it's cheese well.

the right just with lights-out of months sold We on $XXX,XXX. our get average and XX we a in we'll next of those summer the The but the about pipeline. over ago through is those If At them over systems, stall, automation, in we in our is these think since pipeline. almost at on cheese, a this which customers. for you XX of systems cheese we now, of us production look couple years launched systems XX have

at the But equipment multiplier, $XX in where the backlog then from solutions XXx the load, auto at auto back the got and just equipment sell look to on is if we we just pack, side. the pull-through that full cheese of so, So solution. the we in materials where over the alone, piece auto it, million $XXX,XXX, multiplier you

example that tires. the is Protective about about industrials on multiplier back. is coming on we're piece excited side, The for system And this other as an we talked the the the solutions

this a stream, million. big one. the its that And that, of $X to look of RFID polyvinyl our if pull-through of -- mean does at PVC, is years equipment lifetime the tags. what reduction is is a That's It's plus. was $XXX,XXX Xx and film, customer? so XX this robotic this the over piece speed, we've So now over it's Also, waste XXX% And in from that then the multiplier is polyethylene, recyclable, chloride, materials. That you labor. that converted -- actually of Xx Xx packing XX% their customers' operations. to fully But

branded on fully this is faster. in think equipment just And time we're the for question. Europe Operator, us example a so supplier I have we to using more one third-party can get tremendous market So opportunity for a we side.

Operator

line Our question Viswanathan the of Markets. Capital with from last comes RBC Arun

go Your line is open. Please ahead.

Arun Viswanathan

on strategy. the a had I guess I pricing question

So very to share. in care with robust pricing preserve QX

that I pricing look when of So have strategy? formula-based more kind of more about food. be so mid-teens of lost, how pricing would this of it the about it you out that material and some future, where the are Would guess, you say, this price then that Company guys strategy looks still volume. representative Or recede? consider But X% once the of kind we value-based could possible within thinking into internally? you pricing heading for of raw model off think side and to like is and you you action preserve inflation should materials of be raw pricing a removing of you And

Ted Doheny

customers is strategy because the largest -- a involved I've a world. been this around question it's it's personally Actually, great the pricing value-based with with and our

we So, it carefully take very described it. how will

customers take share. gain We pricing disciplined to care of have our to

save and bring customers, in, our to bring is this customers and bring in sustainability like our people. get present much our constraints materials solutions even how we right we our how it's we digital can can't tremendous how market also customers have automation where have inflationary we how we highly now do. inflation They So where we much supply cost, and with much or that's it's not this

it's it's strategy, price, pricing pricing to to gain strategies raise our share. So not a

We So on a are you how you'll payback. about our three-year do sell them targeting do And We're see using services, our it talk on we payback. want payback. automation that to it? equipment if customers see

actually The much team we're save that how the out expensive So are, it's on is not there's pulling there that And focusing money. can to facilities looking them think it's them systems how through and bring large touchless just of facilities. can help we we and good our payback some through our operations own their that's we like we materials news how so waste actually three-year our are, automate we're operations them how at with help customers materials. were sending our drive and touchless our

It's is realization a So, go it process. more raise price value-based selling price. than

our price price is above realization. it's So, quarter of And this first positive cost. our

we are we very this on careful So, how share our customers. with

money, them is save prepared put our as strategy Our to in remarks. we

a our and save going Our materials. our going through service that we them automation, to to money, that's our question. to Great are help is find pull way strategy

operator So, us closes that call. the for

again everybody for next quarter, you talking and safe, want be hope will We diving forward look we do I on are and call and talking right we to stays the everybody hour. to to the sustainability. thank I deep and

operator, thank you. So,

Operator

for today's participating. concludes call. conference you This Thank

a now disconnect. have may day. Everyone great You

Sealed Air (SEE) 3 May 222022 Q1 Earnings call transcript