NEW YORK - Sealed Air Corp., which makes Bubble Wrap and other packaging products, said Wednesday its second-quarter profit slipped 3 percent as sharply lower sales plus a strong dollar offset the effect of cheaper raw materials.

Net income attributable to common shareholders declined to $60.5 million, or 33 cents per share, compared with $62.6 million, or 34 cents per share, last year.

Excluding one-time charges, Sealed Air earned 34 cents per share compared with 38 cents per share a year earlier.

Sales plunged 20 percent to $1.03 billion from $1.28 billion. Analysts, who typically exclude one-time items, expected profit of 34 cents per share on sales of $1.06 billion, Thomson Reuters says.

"While our food businesses combined operating profit increased 23 percent, excluding currency translation, this gain was offset by the ongoing impact of the global recession on our protective packaging and specialty materials businesses," CEO William V. Hickey said.

The company reiterated its full-year earnings guidance of $1.17 to $1.37 per share. Excluding one-time items, the company forecasts a profit of $1.25 to $1.45 per share.

Analysts, who typically exclude one-time items from their estimates, anticipate earnings of $1.39 per share.

"We look to a seasonal volume increase in our food businesses in the third quarter and a slow recovery in our protective packaging and specialty materials businesses later this year and into 2010," Hickey said.

The Elmwood Park, N.J.-based company's food business sales fell no more than 15 percent in the three months ended in June, but sales from its protective packaging and specialty materials businesses fell nearly 30 percent.

Sealed Air's cost of sales decreased 22 percent or $208.7 million, and its marketing, administrative and development expenses declined by 17 percent or $34 million.

Free cash flow during the three months ended in June soared to $228 million from $6 million in last year's second quarter.

Shares fell $2.04, or 9.5 percent, to close at $19.44. In the last 12 months, the stock has ranged from $10.38 to $25.32.

A service of YellowBrix, Inc.