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logo bluSonoco (NYSE:SON), one of the largest diversified packaging companies, has named the Company's Newport, Tennessee, paper mill a bronze Sonoco Sustainability Star Award recipient for the facility's efforts to significantly decrease wastes going to landfill.

The award marks a milestone in landfill-free efforts that have been underway since the fourth quarter of 2012. In late 2012, the Newport facility partnered with local recycling company TLR Solutions to process some of the more difficult to recycle byproducts of the mill's operations, like bailing wire and materials such as glass, staples and ceramics that are sorted out from incoming paper fiber.

"After the company announced its goal of taking 10 percent of its facilities landfill free, we began efforts to eliminate the facility's waste streams," said Marty Pignone, vice president, Paper North America. "The Newport paper mill has made significant advances—recycling almost 20 percent of waste that previously went to landfill each month—and we look forward to continuing those efforts."

Many of the items collected by TLR Solutions for processing require very specific equipment. The recycling company not only found nearby locations with equipment capable of handling the materials, but also worked with those locations for over a year to identify the correct processes for recycling—many some of the first of their kind in North America.

Administered by Sonoco Recycling, the Company's recycling business, the Sonoco Sustainability Star Awards program is comprised of three tiers:

  • Gold recognizes facilities that have achieved 99% landfill diversion.
  • Silver is awarded to facilities achieving 95% landfill diversion, and
  • Bronze recognizes facilities that have made significant waste reduction achievements, such as drastically reducing their waste streams or implementing a new composting system.

A recycling leader with locations and expertise worldwide, Sonoco Recycling annually collects more than 3 million tons of old corrugated containers, various grades of paper, metals and plastics. In addition, the Company has experts who provide secure, reliable and innovative recycling solutions to residential and commercial customers. Currently, Sonoco Recycling operates five material recovery facilities (MRFs) serving more than 125 communities in which curbside-collected residential and commercial materials are processed. The Company also operates recycling programs which identify waste reduction opportunities that reduce operating expenses for many of the largest consumer product companies in the United States.

About Sonoco:

Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized combined sales of approximately $5.4 billion, the Company has more than 21,000 employees working in more than 340 operations in 34 countries, serving some of the world's best known brands in some 85 nations. Sonoco is a proud member of the 2014/2015 Dow Jones Sustainability World Index. For more information on the Company, visit our website at www.sonoco.com.

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Star Level Certification in Voluntary Protection Program Affirms Employee and Management Commitment to Creating a Safe Workplace

sonoco logo 2014Sonoco (NYSE:SON) has announced that its Cascades Sonoco facility in Tacoma, Wash., was awarded Star Level certification in connection with OSHA's Voluntary Protection Program (VPP). The Star Program recognizes exemplary worksites that have achieved injury and illness rates at or below the national average in their industry. According to OSHA, the average VPP worksite has a lost workday incidence rate at least 50% below the average of its industry peers.

"Since the inception of the Cascades Sonoco joint venture back in 1992, safety has been a number-one priority," said Thomas Parenteau, plant manager. "We have a global health and safety policy put in writing, and it is signed by our CEOs. It says the health and safety of all employees shall be of the greatest interest to all levels of the organization, ranking in importance above production, quality, costs and service. It is something that we take very seriously because our employees are our most valuable asset. Achieving this certification involved a number of different initiatives including special training programs, safety audits and a high level of employee involvement and commitment. Safety is not a one-time event; it is an every second, every minute, every day focus. As proud as we are of this achievement, we understand the safety journey never ends."

"The team at the Tacoma site is a showcase for the principles of the Voluntary Protection Program, building exemplary safety and health programs through cooperation, management commitment and employees involvement. It is clear that Cascades Sonoco has a commendable program with proven effectiveness," stated Joel Sacks, Safety and Health Director with the State of Washington Department of Labor and Industries.

"Safety is the first thing we talk about at every meeting, which keeps it top of mind with everyone," said Parenteau. "Our mission, as it relates to safety, is to create an injury-free environment for our employees. We strongly believe that all injuries can and must be prevented. Safety is also strongly tied to the Guiding Principle of Sonoco, which is 'People build businesses by always doing the right thing.' Creating a safe work environment for our employees is certainly the right thing to do."

Cascades Sonoco is a 50/50 joint venture established in 1992 to bring together strong technology platforms for the coating and lamination of industrial papers and other substrates. Cascades Sonoco has four locations: two in the U.S. and two in Canada.

About Sonoco

Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging and packaging supply chain services. With annualized net sales of approximately $4.9 billion, the Company has more than 19,900 employees working in 335 operations in 33 countries, serving many of the world's best known brands in some 85 nations. Sonoco is a proud member of the 2013/2014 Dow Jones Sustainability World Index. For more information on the Company, visit our website at www.sonoco.com.

About Cascades

Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibers. The Company employs close to 12,000 employees, who work in 100 production units located in North America and Europe. With its management philosophy, half a century of experience in recycling, and continuous efforts in research and development as driving forces, Cascades continues to deliver the innovative products that customers have come to rely on. Cascades' shares trade on the Toronto Stock Exchange, under the ticker symbol CAS.

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Sonoco, one of the largest diversified global packaging companies, has announced that it has been awarded the primary packaging, retail display assembly and fulfillment of a segment of battery products for Energizer brands.

As part of a companywide plan to improve operations, Energizer joined with Sonoco to develop processes to streamline its Asheboro, N.C., battery packaging facility. To achieve its productivity goals, Energizer awarded a portion of the primary and display packaging to Sonoco for battery stock keeping units (SKUs), defined as types that run on more manual, hand-packed lines. As part of its total solution approach, Sonoco will also manage the fulfillment process for Energizer on these specific SKUs.

"After a great deal of research and analysis we found the most effective way to accomplish our packaging objectives was to work with Sonoco on a total solutions approach," said Chuck Marckwardt of Energizer. "We'll relocate the equipment to a Sonoco facility where they will manage a turnkey operation—handling the design, material procurement, packaging production and distribution of all multiple SKUs. We felt that Sonoco could best provide this kind of support."

Jeffrey Tomaszewski, division vice president and general manager of Sonoco Display and Packaging, agreed, "This turnkey service, provided at our Rural Hall, N.C., Display and Packaging facility, includes the design and sourcing of materials and packaging, the actual packaging of the batteries and the deployment of finished goods to designated distribution centers and/or direct to customers on behalf of Energizer."

The scope of service includes providing a total solutions approach for more than 30 million primary packs covering more than 150 SKUs, in packaging configurations, including blister cards, shrink wrapped trays and carton products. In addition, Sonoco Display and Packaging will design, source, manufacture, pack and ship thousands of retail displays annually. The first shipment was delivered in March, with complete ramp up of operations expected to occur through the second quarter of 2013.

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Sonoco has announced today that M. Jack Sanders has taken over as president and chief executive officer following his election by the Company's board of directors. Sanders, 59, succeedsHarris E. DeLoach Jr., who retired as CEO after a 27-year career with the Company. As announced in December, DeLoach, 68, remains Sonoco's executive chairman of the board.

"I'm extremely proud and honored to be elected to lead such a great company," said Sanders, who is only the Company's eighth CEO in its 114-year history. "Sonoco was founded on creativity, hard work, a spirit of innovation and a focus on satisfying our customers while creating value for our shareholders. We want to continue building on past successes and defining a new future for this exceptional company."

A graduate of Louisiana State University with a Bachelor of Science degree in finance, Sanders joined Sonoco in 1988 as national sales and marketing manager for the Company's Reels business. In 1992, he was asked to build and lead the development of Sonoco's new Protective Packaging business as its general manager and in 1998 was promoted to division vice president and general manager. 

Sanders was elected a corporate officer and named vice president, Industrial Products, North America, in 2001. He was subsequently named vice president, Global Industrial Products, in January 2006 and assumed responsibility for all Industrial Converting businesses as senior vice president in July 2007. In 2008, Sanders was named executive vice president, Industrial, with global operating responsibility for all of the Company's businesses serving industrial markets, including Sonoco's tubes and cores, paper, reels, protective packaging, paperboard specialties and recycling businesses. Prior to assuming his current position, Sanders served as the executive vice president of Sonoco's Global Consumer businesses, where he was responsible for Rigid Paper and Closures, Rigid Plastics, Flexible Packaging, and Display and Packaging.

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IMG 4444Sonoco (NYSE: SON) has announced that it will raise the price for all paperboard tubes and cores by 4 percent, effective with shipments in the United States and Canada beginning Feb. 18, 2013.

"This price increase is necessary to recover recently announced paperboard price increases and other inflationary inputs impacting our converting cost," said James Harrell, vice president, Tubes and Cores-North America.

Sonoco is the largest producer of paper-based tubes and cores in North America which are used to serve the paper, textiles, plastic films and tape and specialty industries. For more information about Sonoco's complete line of paperboard tubes and cores or to learn more about current pricing, please visit the Company's website or contact the Company at +800-377-2692.

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thumb logo bluSonoco
 (NYSE: SON) has announced that it will raise the price for all grades of uncoated recycled paperboard (URB) products by $25 per ton, effective for shipments in the United States andCanada beginning Feb. 11, 2013.

"This price increase is necessary to recover continued inflationary pressure from non-fiber-related costs, including chemicals, energy, freight, repair materials, labor and other expenses," said Marty Pignone, vice president, Primary Materials Group, North America.

Sonoco is one of the largest producers of uncoated recycled paperboard in the United States and Canada, producing more than 1 million tons annually from 13 mills. For more information about Sonoco's complete line of URB paper products or to learn more about current pricing, please visit the Company's website or contact the Company at +800-377-2692.

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reelsSonoco will raise surcharges to 13.4 percent for its nailed wood reels and 8.8 percent for plywood reels, effective Jan. 1, 2013. The surcharges are necessary to offset continued increases in lumber and plywood costs.

"Lumber and plywood pricing continue to rise against traditional downward trends normally seen in the late fall and winter," saidGreg Powell, general manager, Sonoco Reels. "Lumber prices have increased for six consecutive weeks to reach a new high, while plywood pricing has continued to rise due to tightening supply and improving demand. As a result, we must adjust our reel surcharges accordingly."

Sonoco Reels is the most comprehensive provider of reels produced from nailed wood, plywood, poly-fibers, molded plastic and steel materials. Reels produced by Sonoco are used by the wire and cable industry to serve the power transmission and distribution; telecommunications; commercial and industrial building; oil and gas; mining and marine industries.

For more information about Sonoco's complete line of reels or to learn more about current pricing, please visit the Company'swebsite or contact Sonoco Reels at +800-633-3962.

SOURCE Sonoco

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Monday, 10 December 2012 11:30

Sonoco Details Strategic and Financial Targets

logo bluSonoco (NYSE: SON) Chairman and Chief Executive Officer Harris E. DeLoach Jr., President, Chief Operating Officer and CEO-elect M. Jack Sanders and Vice President and Chief Financial Officer Barry L. Saunders, has provided the investment community in New York with an update on the Company's 2012 performance and outlined the Company's strategic initiatives and financial outlook.

2012 Base Earnings Guidance Unchanged; 2013 Estimates Established
Sonoco expects fourth quarter and full-year 2012 base earnings to be unchanged from the Company's previously announced guidance of $.52 to $.56 and $2.17 to $2.21 per diluted share, respectively. The Company reported fourth quarter and full-year 2011 base earnings of $.46 and $2.29 per diluted share, respectively. Base earnings and base earnings per diluted share are non-GAAP financial measures adjusted to remove restructuring charges, asset impairment charges, acquisition expenses and other items, if any, the exclusion of which the Company believes improves comparability and analysis of the underlying financial performance of the business.

"At this point in the quarter, we have not seen any significant changes in business conditions that would cause us to revise guidance, but customer order patterns remain somewhat erratic and overall economic activity is uncertain," said Sonoco's CFO Saunders.

"Sonoco expects to recognize about $12 million in additional tax expense in the fourth quarter of 2012 associated with the repatriation of cash held outside the United States. This one-time charge is excluded from the Company's base earnings projections," Saunders said.

Commenting on the Company's 2012 expected results, DeLoach said, "Obviously, our performance in 2012 is not what we expected when we began the year. That said, we have weathered a difficult economic and operating environment and made changes we believe will improve our performance in the future."

Sonoco estimates 2013 base earnings per diluted share to be in the range of $2.24 to $2.32, with a projected midpoint of $2.28per diluted share. Saunders said the Company's midpoint guidance assumes a $.20 per share improvement stemming from modest volume growth, productivity improvements and a slightly positive price/cost relationship. Offsetting these improvements is approximately $.11 in negative items, including an estimated $.09 per share impact from higher year-over-year pension expenses.

Free Cash Flow Outlook Provided; Capital Deployment Plans Outlined
DeLoach pointed out that despite lower expected earnings through the first nine months of 2012, cash flow from operations has increased 125 percent year over year to nearly $297 million, due to lower pension and post retirement contributions and beneficial changes in working capital. For 2012, the Company expects to generate free cash flow of approximately $90 million, after paying approximately $120 million in dividends to shareholders.

Looking forward, Sonoco is projecting that annual cash flow from operations could average approximately $460 million over the next several years. For 2013, free cash flow, after dividends, is estimated to increase to approximately $130 million, due primarily to anticipated lower pension contributions, CFO Saunders said.

President, COO and CEO-elect Sanders outlined Sonoco's anticipated capital deployment plans saying, "Our first priority will be to maintain our strong investment grade credit rating. With the repatriation of cash and the use of free cash flow, we expect to make significant debt-reduction payments in 2013.

"In addition, we plan to continue investing in our targeted growth businesses while optimizing operations in our more mature businesses. Our dividend policy is unchanged and we expect to continue rewarding our shareholders with cash dividends as we have for 350 consecutive quarters, going back to 1925. For 2013 through 2015, our remaining available cash is expected to total approximately $260 million and be available for targeted acquisitions and/or share repurchases."

Strategy Focusing Resources to Targeted Growth Businesses  
Sanders said that Sonoco will be focusing resources and investment in businesses which serve faster growing markets, including the Company's Consumer Packaging and Protective Solutions businesses and selected emerging market development opportunities for composite cans and tubes and cores.

"We are targeting to grow our top-line sales to between $5.5 and $6.0 billion by the end of 2015," said Sanders. "We must drive organic growth in our faster growing businesses and optimize operations in our more mature businesses by focusing on market share management and cost optimization."

Sanders cited the following 2012 and 2013 growth projects, by business segment, as examples of the Company's growth strategy.

  • Rigid Paper and Closures
    • Sonoco is establishing a new composite can production facility in Johor Bahru, Malaysia, to meet the growing appetite for premium stacked chips throughout Asia.
    • Stacked chip capacity is likely to be added in 2013 in Brazil and a review of growth opportunities in Eastern Europe is underway.
  • Rigid Plastics
    • Sonoco started up in the third quarter of 2012 a new multilayer, trim-in-place thermoforming line at its Waynesville, N.C., facility to produce of a variety of containers for chilled and thermally processed shelf stable foods.
    • The Company plans to invest $7 million in 2013 to add a third multilayer, barrier bottle production line for nutraceutical beverages at its Columbus, Ohio, production facility.
    • In the third quarter of 2012, the Company commenced commercial operation of a new $15 million 142,000-square-foot plant in New Albany, Ohio, to produce PET personal care bottles.
  • Flexible Packaging
    • Investment is being made to add a new rotogravure press to the Company's Morristown, Tenn., facility in 2013.
  • Display and Packaging
    • Expanded packaging fulfillment capacity in Brazil and a new in-DC (distribution center) facility in the U.S. were put in operation in 2012.
  • Protective Solutions
    • An investment of $15 million is planned in 2013 to build two new custom-molded foam fabricating facilities in the United States and Mexico to serve the growing automotive component market.

Key Takeaways
Sanders concluded the Company's review by saying, "2013 is projected to be a better year, but again we don't expect any real help from the global economy. In addition, we expect to face pension headwinds. However, free cash flow, after dividends, is expected to increase by up to 40 percent next year to $130 million."

"Our extended outlook through 2015 could see our top line reach $5.5 billion and earnings growing at compound rate of about 8 percent. To fully meet our financial targets we may need to make some minor course corrections along the way, including considering how we are organized so we can better satisfy the customer."  

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logo bluSonoco (NYSE: SON) has announced that John M. Colyer Jr., has been named senior vice president, Global Industrial Products and Protective Solutions, and Rob C. Tiede has been named senior vice president, Global Consumer Packaging and Services, according to M. Jack Sanders, president and chief operating officer, and the Company's chief executive officer-elect. These appointments are effective Jan. 1, 2013.

Colyer, 51, formerly vice president, Global Industrial Converting, will have responsibility for the Company's Global Paper, Tubes and Cores, Reels, Protective Solutions and related support businesses. Tiede, 54, formerly vice president, Global Flexibles and Packaging Services, will have responsibility for the Company's Corporate Customer program as well as its Global Rigid Paper, Closures, Rigid Plastics, Flexibles, and Display and Packaging businesses. 

"John and Rob are veteran leaders of our global packaging businesses and have demonstrated an ability to build strong businesses and effective leadership teams," said Sanders. "John has been instrumental in optimizing our global industrial-related businesses and in pursing the acquisition of Tegrant Holding Corporation, which led to the formation of our growing Protective Solutions business. Rob has successfully led efforts to rebuild our Flexible Packaging and Display and Packaging businesses, while evolving our marketing efforts and serving as executive sponsor for our IT systems integration."

Colyer has 29 years of experience with Sonoco and held numerous leadership and manufacturing positions in businesses serving industrial and consumer markets.  He is a graduate of Southern Oregon State University with a B.S. degree in business administration.

Tiede joined Sonoco in 2004 as head of the Company's Display and Packaging business following the acquisition of CorrFlex Graphics' point-of-purchase display and supply chain management business. He was named division vice president and general manager of Sonoco's Flexible Packaging division in 2007 and became vice president, Global Flexibles and Packaging Services in 2009. Prior to joining Sonoco, Tiede was executive vice president of Graphic Packaging International, Inc., president of Sterling International and president of Bostic Packaging/CorrFlex.  Tiede received a business administration diploma fromRed River Community College in Winnipeg, Manitoba, Canada, and is a Canadian Charted Accountant.

Industrial and Consumer Executive Appointments

Rodger D. Fuller, 51, previously vice president, Global Rigid Plastic and Corporate Customers, has been named group vice president, Paper/Tubes and Cores, North America, reporting to Colyer. In this new position,  which is effective Jan. 1, 2013, Fuller will be responsible for improving the vertical integration of the Company's North American Paper, Tubes and Cores, Recycling and internal supply businesses.

Fuller joined Sonoco in 1985 and has held a number of senior leadership positions primarily in the Company's Consumer Packaging segment, including running the Company's global composite can, Rigid Plastics and North America and European consumer products operations. Fuller graduated from Berry College with a B.S. degree in business administration and earned an MBA from Emory University. 

With Fuller's appointment, R. Howard Coker, 50, previously vice president, Global Rigid Paper and Closures, has been given the additional responsibilities as group vice president, Global Rigid Paper and Plastics, reporting to Tiede. The appointment is effective Jan. 1, 2013. During his career at Sonoco, Coker has held numerous leadership positions, including vice president, Rigid Paper and Closures, North America; division vice president and general manager, Sonoco Phoenix; director of sales and marketing, Rigid Paper and Plastics; and general manager, Asia/Pacific, Rigid Paper and Plastics. He is a graduate of Wofford College with a B.A. in business administration and holds an MBA in business administration from Wake Forest University.

Leach Retiring from Sonoco; Arthur to Head Protective Solutions Segment

Ronald G. Leach Jr., vice president, Protective Solutions, has decided to retire from Sonoco, effective March 31, 2013. Replacing Leach will be Vicki B. Arthur, vice president, Protective Solutions, reporting to Colyer. The appointment is effectiveApril 1, 2013.

"I want to personally thank Ron for working with Sonoco to acquire Tegrant and helping our efforts to rapidly integrate and further grow our combined Protective Solutions businesses," said Colyer. "Vicki is an excellent choice to lead this business after directing our joint integration team and then quickly transitioning into a leadership position heading our custom-engineered consumer and industrial expanded foam and temperature-assurance packaging businesses."

Arthur, 54, was previously vice president, Global Corporate Customers, and division vice president and general manager of Sonoco's Kraft Corporate Customer team, where she had global packaging relationship responsibility for the former Kraft Foods. She joined Sonoco in 1984 and held various finance positions, including as staff vice president and treasurer. Arthur graduated from the University of South Carolina with a B.S. degree in accounting and holds an MBA in business from Duke University. She is a Certified Public Accountant.

Leach, 55, joined Sonoco after serving as president and CEO of Tegrant. He was also president and CEO of Alloyd Companyand served as a general manager of TriEnd Corporation and has held several other leadership roles in the packaging industry.  Leach holds a B.S. degree in packaging engineering from Michigan State University.  

SOURCE Sonoco

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Sonoco Display and Packaging, the point-of-purchase (POP) display and packaging services business of Sonoco (NYSE: SON), has been awarded four Design of the Times awards, including a prestigious Platinum award, by the Path to Purchase Institute.

 

The Display and Packaging group won the following awards:

  • Platinum, Home/Hardware category – Scotts® Snap® Spreader Launch Bridge for The Scotts Miracle-Gro Co.
  • Gold, Home/Hardware category – Scotts® Snap® Spreader Launch Bridge for The Scotts Miracle-Gro Co.
  • Gold, Mass Merchandisers, category – P&G Pringles® Gravity-feed Endcap for Procter & Gamble, in partnership with Saatchi & Saatchi X
  • Silver, Drug category – Allegra® RX-to-OTC Launch Display for Chattem Inc.

"It is very rewarding to have our talented group recognized for effectively demonstrating Sonoco's ability to deliver on the promise of providing superior retail merchandising and shelf appeal for our global customers," said Jeff Tomaszewski, general manager, Sonoco Display and Packaging.

Sonoco's entries made it through two rounds of judging during the competition, including a first round in August 2012 at Target Corp.'s headquarters in Minneapolis, Minn. Judges evaluated hundreds of entries from eight retail channels based on the Four C's of Effective in-store Activation:

  • Command attention,
  • Connect with the shopper,
  • Convey information, and
  • Close the sale.

Judges scored entries on a scale of one to five for each attribute and chose 85 finalists, based on average point total, to move on to the second and final round, held on Oct. 16, at the Shopper Marketing Expo. Finalists were awarded bronze, silver, gold, platinum or Best of the Times status. Finalists with the top average score in each retail channel received platinum status, and the finalist with the highest score overall won "Best of the Times" for 2012.

SOURCE Sonoco

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