Boston, MA 09/26/2014 (wallstreetpr) – According to reports, Sealed Air Corp (NYSE:SEE) has decided to increase prices of its North American Food Care division products. As per the information, the expected price hike can be between 3%-5% effective from October 6, 2014. The cost of the production has increased over the past few months, and the company is finding it very difficult to sustain with existing system. It has analyzed for several months as what would be the ideal combination of price hike and finally has come up with 3% to 5% hike immediately, with a scope of changes in the future.
Management Call:
Jerome A. Peribere, CEO and President of Sealed Air Corp (NYSE:SEE) told the reporters that it was not the first time when SEE had decided to increase the prices of the products. Recently it increased the prices of Product Care Division in the month of August and then it decided to increase prices of North American Food Care division products. The main reason behind this price hike according to Peribere was increment in input costs and continued escalation of all the key raw materials like nylon and polyethylene. All the major petrochemical suppliers of the country had increased the prices of these raw materials; therefore, SEE didn’t have any other option but to increase prices of its products. He further stated that the company had suffered from the price hike of raw material in the starting of the year. Recent price hike was the second time when the suppliers had increased prices within last nine months. It had put an extra pressure on the company to execute its operations. He noted that total price hike since January 2013 was between 13-22% while it was 4-8% from the early 2014. No other person from the management of Sealed Air Corp (NYSE:SEE) was available to comment on this issue.
