Displaying items by tag: sonoco

The Board of Directors of Sonoco (NYSE: SON) today declared a $.28 per share quarterly common stock dividend. The dividend will be payable on March 10, 2011, to shareholders of record as of February 18, 2011.

According to Harris E. DeLoach, Jr., chairman and chief executive officer, this is the 343^rd consecutive quarter, dating back to 1925, that the Company has paid cash dividends to shareholders.

Sonoco, one of the largest diversified global packaging companies, has reached an agreement with the Composite Can and Tube Institute (CCTI) to make the Company's patented Radial Crush Tester for spiral-wound paperboard tubes and cores available to the industry.

According to David E. Rhodes, Sonoco's director of global industrial technology and engineering, "The radial crush tester measures the radial strength of a tube or core, which is a critical factor for a customer whose product applies a radial load such as plastic film and extensible textiles. The tester is able to simulate the loading condition that a customer's products apply to a core. The failure mode created by the tester is the same as the radial crush failure that occurs in a customer's winding operations."

Kristine Garland, Executive Vice President of the Composite Can and Tube Institute stated, "CCTI's Technical Committee will develop and publish a standardized industry-wide testing procedure for measuring radial crush with the Sonoco radial crush tester. The Radial Crush Tester will be demonstrated at CCTI's Spring Operations Meeting, March 16-17, 2011, in Myrtle Beach, S.C."

Sonoco developed the radial crush tester in response to customer requirements more than 15 years ago. The tester is manufactured exclusively by Sonoco and used throughout its global tube and core operations.

Sonoco is the world's largest producer of spiral-wound uncoated recycled paperboard tubes and cores that serve as carriers for numerous products serving the film, paper mill, textiles, tape and labels, metals, construction, shipping and storage markets. The Company operates approximately 90 converting facilities on five continents.

Southern Plug and Manufacturing, Inc., a unit of Sonoco Products Company, today announced that it will permanently close its Bastrop molded plug manufacturing plant. The plant, located at 6566 Mer Rouge Road, has been shut down since it was destroyed by fire on November 5, 2010. The Southern Plug plant, which began operation in 1978, employed 50 full-time workers and primarily produced molded plugs used in tubes and cores for the paper industry.

"This was an extremely difficult decision, particularly considering the impact it will have on the plant's employees and their families," said James Harrell, vice president, North American Converting for Sonoco. "Since fire destroyed the plant, we have been working with our customers to provide alternative supply sources while developing a longer-term solution. However, the loss of the Bastrop supply is transforming the market for molded plugs. Given these changes and the risk to supply created by a single large site, it is clear that development of a new dedicated manufacturing facility will no long meet the needs of the market.

"Sonoco will remain in the molded plug business," Harrell emphasized. "However, to meet the future needs of our customers, we will be developing a more diversified supply system, which includes using existing Sonoco plant sites as well as joint production and supply agreements with other producers. This strategy will allow us to reduce the risk to supply and better meet the broad geographic needs of our customers throughout North America."

As a result of the permanent closure, Bastrop employees will receive severance payments, extended benefits and career outplacement services. After the plant was shut down, the Company provided employees with two weeks of additional pay, bonus pay, plus accrued vacation and holiday pay. Under the plant closure program, employees will receive severance pay that is equal to one week's pay for each year of employment, with a minimum of four weeks pay. As a bridge during the holidays, employees also will receive one additional week of pay in addition to the severance payment. During the paid severance period, each individual will receive extended employee benefits as well as outplacement services and career counseling. Qualified workers will be able to apply for certain open positions within Sonoco's U.S. operations.

"We worked quickly to make a decision so that Bastrop employees knew where they stood and could make future plans. We realize that nothing will replace an existing job, but we do want to provide these workers with a bridge to a new career or, if eligible, into retirement," said Harrell. "We also want to thank everyone in the Bastrop community who has reached out to our employees and to Southern Plug. State, parish and city economic development personnel worked hard with local officials to help develop a competitive local redevelopment opportunity. Unfortunately, the market has changed, and our customers' needs call for a new supply solution."

About Sonoco

Based in Hartsville, S.C., and founded in 1899, Sonoco is a global manufacturer of consumer and industrial packaging and provider of packaging services, with more than 300 operations in 35 countries, serving some 85 nations. For more information on the Company, visit our Web site at www.sonoco.com.

SOURCE: Sonoco

Sonoco, one of the largest diversified global packaging companies, today announced that M. Jack Sanders has been named president and chief operating officer, effective immediately. Sanders, 57, will report to Harris E. DeLoach, Jr., 66, chairman and chief executive officer.

"We are very pleased to have Jack become president and chief operating officer of Sonoco. Over his 23-year career with the Company, Jack has demonstrated exceptional operations leadership while running all of our Global Consumer and Industrial businesses," said DeLoach, who has been president of Sonoco since 2000.

In this new leadership role, Sanders will have global operating responsibility for Sonoco's businesses serving consumer markets, including Global Rigid Paper and Closures, Global Rigid Plastics, Global Flexible Packaging and Global Services. He also will have responsibility for the Company's businesses serving industrial markets, including the Company's vertically integrated global industrial converting and paperboard operations. Combined, these businesses operate more than 300 plants in 35 countries.

A 1976 graduate of Louisiana State University with a B.S. in finance, Sanders joined Sonoco in 1987 as national sales and marketing manager, Wire and Cable Reels. In 1991, he was named general manager for Sonoco's Protective Packaging division and was promoted to division vice president and general manager of Protective Packaging in 1998. 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 2005, senior vice president in 2006 and executive vice president in 2008. Prior to this promotion, Sanders has served as executive vice president, Global Consumer, since January 2010.

About Sonoco

Founded in 1899, Sonoco is a $3.6 billion global manufacturer of industrial and consumer products and provider of packaging services, with more than 300 operations in 35 countries, serving customers in some 85 nations. For more information on the Company, visit our Web site at http://www.sonoco.com/.

Sonoco will increase prices for all uncoated recycled paperboard grades in the United States and Canada by $30 per ton effective with shipments on Nov. 29, 2010. In addition, the Company announced that it will increase prices on all paperboard tubes and cores in the United States and Canada by 5 percent effective with shipments on Nov. 29, 2010.

"Prices for old corrugated containers in the Southeast have increased by one-third in the past three months, which is unprecedented during what is normally the highest material generation time of the year," said Harris DeLoach, Sonoco chairman, president and chief executive officer. "Strong domestic and export demand is causing an imbalance in the supply of recovered paper, which is our primary raw material. It is essential that we begin recovering these higher input costs."

The Nov. 29 price increase for the Company's uncoated recycled paperboard grades is in addition to a $35 per ton increase which went into effect on Oct. 11, 2010.

New Site Provides Fresh, Updated Appearance That Promotes and Supports Sonoco's Brand

Sonoco has announced the launch of the first phase of a new corporate Web site that provides visitors with a fresh new look, more functionality and improved navigational capabilities.

"Clearly, our goals going into the project were to upgrade functionality, simplify navigation and make the site more visually appealing, but it was important for us to do so without compromising the cultural integrity of Sonoco," said Robin Montgomery, manager of Corporate Communications.

"While we wanted to increase the site's impact through the use of motion graphics and video, we didn't want to clutter the site with too much content or overwhelm visitors with too many bells and whistles. We wanted keep the site clean and professional, and make sure it gives visitors a clear understanding of who we are and the products and services we offer."

A few elements on the new Web site worth noting include: a home page that regularly rotates content, providing the Company with a prominent space to feature new products, new technologies or news announcements; more expansive use of video, including the Careers page where prospective employees can hear current employees share their thoughts about working at Sonoco; and a new locations database where visitors can more easily identify Sonoco facilities around the globe.

Phase I of the redesign process, which focused on Sonoco's North American operations, began in January. Phase II of the project, which will focus on international operations, is expected to be complete by mid-year 2011.

About Sonoco

Founded in 1899, Sonoco is a $3.6 billion global manufacturer of industrial and consumer products and provider of packaging services, with approximately 300 operations in 35 countries, serving customers in some 85 nations. Sonoco is a proud member of the Dow Jones Sustainability World Index. For more information on the Company, visit our Web site at http://www.sonoco.com.

SOURCE: Sonoco
Robin Montgomery, 001-843-383-7509, This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.sonoco.com

Sonoco, one of the largest diversified global consumer and industrial packaging companies, today reported strong third quarter 2010 results with sales and earnings significantly exceeding prior year results.

Highlights

• Third quarter 2010 GAAP earnings per diluted share were $.57, compared with $.47 in 2009.
• Third quarter 2010 GAAP results include noncash impairment and restructuring charges of $.07 per diluted share primarily associated with an asset impairment charge in the Flexible Packaging unit and $.01 per diluted share of acquisition related costs.
• Base net income attributable to Sonoco (base earnings) for third quarter 2010 was a record $.65 per diluted share, up 30 percent, compared with $.50 in 2009. (See base earnings definition and reconciliation later in this release.)
• Third quarter 2010 net sales of $1.05 billion were 13 percent higher than the $931 million in 2009.
• Guidance for full-year 2010 base earnings is moved to $2.32 to $2.36 per diluted share, from the previously forecast $2.27 to $2.34.

Commenting on the Company's third quarter results, Chairman, President and Chief Executive Officer Harris E. DeLoach Jr. said, "Our focus on growth and improving operating performance continued to pay off as base earnings for the quarter reached a record on strong volume, lower pension costs and improved productivity along with a neutral price/cost. In addition, base earnings per diluted share for the quarter met the high end of our previous guidance and equaled First Call's consensus of $.65 per diluted share.

"Much of the quarter's year-over-year improvement came from our industrial-focused businesses which continued to rebound strongly from last year's recession-impacted results. Operating profits in our Tube and Core/Paper segment experienced a 76 percent improvement, and our industrial-related businesses within All Other Sonoco reported over a 100 percent year-over-year improvement. The majority of our industrial businesses experienced strong volume and benefited from solid productivity improvements.

"On the consumer side, our Consumer Packaging segment recorded year-over-year gains in operating profits for the eleventh consecutive quarter, due primarily to productivity improvements and acquisition gains. However, results declined in our Packaging Services segment due to weak volume stemming from previously reported business losses in point-of-purchase displays and fulfillment, which were only partially offset by productivity improvements."

Third Quarter and Nine Months Results

Third quarter net income attributable to Sonoco was $59.0 million, or $.57 per diluted share, compared with $47.7 million, or $.47 per diluted share, in 2009. Base earnings were $67.0 million, or $.65 per diluted share, in the quarter, compared with $50.9 million, or $.50 per diluted share, in 2009. Base earnings and base earnings per diluted share are non-GAAP financial measures adjusted to remove restructuring charges, asset impairment charges, acquisition costs and other items, if any; the exclusion of which the Company believes improves comparability and analysis of the underlying financial performance of the business.

Excluded from base earnings in the third quarter of 2010 were the previously mentioned after-tax impairment and restructuring charges of $6.9 million, or $.07 per diluted share, primarily related to noncash asset impairment charges in the Company's Flexible Packaging unit. The impairment charges were taken after the Company was advised by one of its customers that its current contract to provide certain packaging will not be renewed in its entirety. According to the customer, the business reduction will be phased out over the next two years. The expected loss of business will not impact current year sales. Acquisition-related costs of $1.1 million, after tax, ($.01 per diluted share) were also excluded from 2010 third quarter base earnings. After-tax restructuring charges of $3.2 million, or $.03 per diluted share, were excluded from base earnings in the 2009 quarter. Additional information about base earnings and base earnings per share along with reconciliations to the most closely applicable GAAP financial measures is provided later in this release.

The Company's overall gross profit margin in the third quarter improved to 19.0 percent of sales, from 18.6 percent in the same period in 2009, due to productivity gains, higher volumes, lower pension expenses and cost-control initiatives.

Net sales for the third quarter were $1.05 billion, compared with $931 million in the same period in 2009. This 13 percent increase during the quarter was due to improved Companywide volumes, higher selling prices, open-market sales of corrugating medium previously produced under a cost-plus-fixed-management-fee arrangement and acquisitions. These factors were partially offset by a $6 million negative impact from foreign currency translation, primarily as a result of the weaker euro. The impact of higher selling prices was realized almost exclusively in the Tubes and Cores/Paper segment, where the gains were principally driven by higher recovered paper prices.

Cash generated from operations in the third quarter was $145 million, compared with $176 million in the same period in 2009. Higher earnings were offset by an increased use of cash to fund working capital resulting from significantly higher levels of business activity, compared with the prior year quarter. Capital expenditures and cash dividends paid to shareholders were $42 million and $28 million, respectively, during the third quarter of 2010, compared with $25 million and $27 million, respectively, in the same period in 2009. On June 29, 2010, Sonoco paid approximately $120 million in cash to acquire Associated Packaging Technologies, Inc. (APT), a leading provider of rigid plastic food packaging serving the frozen food industry in North America, Europe and Australia/New Zealand.

For the nine-month period ending September 26, 2010, net sales increased 15 percent to $3.0 billion, compared with $2.6 billion in 2009. Net income attributable to Sonoco for the 2010 nine-month period was $166.5 million ($1.63 per diluted share), compared with $104.4 million ($1.03 per diluted share) in the same period in 2009. Earnings for the 2010 nine-month period were negatively impacted by previously mentioned after-tax impairment, restructuring and acquisition charges of $12.1 million ($.12 per diluted share), compared with $16.6 million ($.17 per diluted share) in the 2009 period.

Base earnings for first nine months of 2010 were $178.6 million ($1.75 per diluted share), compared with $121.0 million ($1.20 per diluted share) during the same period in 2009. Significantly higher Companywide volumes, lower pension costs and productivity improvements drove the 48 percent, year-over-year gain in base earnings. Gross profit as a percent of sales was 18.9 percent, compared with 18.2 percent in the first nine months of 2009.

For the 2010 nine-month period, cash generated from operations was $261 million, compared with $358 million in the same period in 2009. Higher earnings were offset by an increased use of cash flow to fund working capital resulting from significantly higher levels of business activity, compared to the prior year. Capital expenditures and cash dividends were $101 million and $83 million, respectively, compared with $83 million and $81 million, respectively, in the same period in 2009. In addition, the Company used cash to fund acquisitions totaling $134 million and $1 million in the first nine months of 2010 and 2009, respectively. At the end of the third quarter of 2010, total debt was $626 million, compared with $581 million as of the end of December 31, 2009. The Company's debt-to-total-capital ratio as of September 26, 2010 was 29.4 percent, basically flat with the 29.6 percent at the end of 2009. The Company had $43 million outstanding under its $500 million commercial paper program as of September 26, 2010. Cash and cash equivalents totaled $169 million, compared with $185 million at the end of 2009.

Fourth Quarter 2010 Outlook

Sonoco expects fourth quarter 2010 base earnings to be in the range of $.57 to $.61 per diluted share. Base earnings in the fourth quarter of 2009 were $.58 per diluted share. For the full-year 2010, base earnings are currently projected to be in the range of $2.32 to $2.36 per diluted share, compared with the guidance given on July 21, 2010, of $2.27 to $2.34 per diluted share. The change is due primarily to achieving the upper end of the range of guidance in the third quarter. The Company's 2010 earnings guidance reflects an expected effective tax rate of approximately 30 percent.

The Company's base earnings guidance assumes sales demand will remain near the levels experienced during the past several quarters, adjusted for seasonality, and that it will experience a slightly negative price/cost relationship, due to increased cost of old corrugated containers (OCC). Although the Company believes the assumptions reflected in the range of guidance are reasonable, it cautions the reader that the outlook, given the volatility of OCC and plastic resin prices, as well as uncertain global economic conditions, remains equally uncertain, and there is a risk that actual results could vary substantially.

Commenting on the Company's outlook, DeLoach said, "While we have shown significant year-over-year improvement in sales and earnings during the past four consecutive quarters as the general global economy has improved, the 2010 fourth quarter will be the first tough comparison since the recession ended in 2009. In addition, OCC prices have strengthened entering the fourth quarter which could cause some short-term headwinds as we work to recover those higher prices. Our guidance also reflects a continuation of good performance in our Consumer Packaging segment and weak results in Packaging Services."

Sonoco (NYSE: SON), one of the largest diversified global packaging companies, will host its regular quarterly investor conference call on Thursday, October 21, 2010, at 11 a.m. Eastern time, to review its financial results for the third quarter of 2010. Participants from Sonoco will include Harris E. DeLoach, Jr., chairman, president and chief executive officer, Charles J. Hupfer, senior vice president and chief financial officer, and Roger P. Schrum, vice president, investor relations and corporate affairs. Sonoco intends to issue a news release reporting its third quarter 2010 financial results at 7:30 a.m. Eastern time on October 21, 2010.

The live investor conference call webcast can be accessed via the Internet at http://www.sonoco.com, under the "Latest News" section. Those planning to participate should plan to connect to the live webcast at least ten minutes prior to the start. Those interested in participating in the live interactive call should contact Sonoco Investor Relations at +843/339-6748 or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it. to register. A telephonic replay of the call will be available starting at 2 p.m. Eastern time to U.S. callers at 888/286-8010 and international callers at +617/801-6888. The replay passcode for both U.S. and international calls is 65867347. The archived call will be available through October 28, 2010.

About Sonoco

Founded in 1899, Sonoco is a $3.6 billion global manufacturer of industrial and consumer products and provider of packaging services, with more than 300 operations in 35 countries, serving customers in some 85 nations. Sonoco is a proud member of the Dow Jones Sustainability World Index. For more information on the Company, visit our Web site at http://www.sonoco.com.

SOURCE: Sonoco

Sonoco
Roger Schrum, 843-339-6018
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Sonoco-Alcore S.a.r.l. will increase prices in Europe for all uncoated recycled paperboard (URB) grades by EUR 40, or £35, per metric ton, effective with shipments on October 18, 2010, according to Eddie Smith, vice president, Sonoco-Alcore.

"This price change is unfortunately unavoidable. Over the past quarter, we have seen a severe increase in the cost of starches and chemicals as well as an overall tightness of raw material supply and URB in the market," said Smith.

Sonoco-Alcore S.a.r.l. is wholly owned by Sonoco (NYSE: SON) and operates 30 tube and core plants and six paper mills in Europe.

SOURCE: Sonoco

Sonoco
Roger Schrum, 843-339-6018
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Company is One of Only Two U.S. Packaging Companies Listed on DJSI World in 2010/2011

Sonoco announced that for the second year in a row it has been selected to join the Dow Jones Sustainability World Index (DJSI World). DJSI World comprises the leading global companies in terms of economic performance, environmental stewardship and social responsibility. Dow Jones Sustainability Indexes are determined following an annual review by SAM, an investment boutique focused on sustainability investing, together with Dow Jones Indexes.

"We are very pleased to be one of only two U.S.-based containers and packaging companies to make this elite group of DJSI World companies. It recognizes the importance Sonoco places on being a leader in sustainable packaging and provider of recycling services to many of the largest consumer brands in the world," said Harris E. DeLoach Jr., chairman, president and chief executive officer.

Following SAM's largest global analysis of corporate sustainability leadership, 48 companies will join DJSI World, while 46 firms will be deleted, resulting in a total of 318 index components. All changes will become effective with the opening of equity markets on September 20, 1010. The DJSI follows a best-in-class approach and includes sustainability leaders from each industry on a global and regional level. The annual review of the DJSI family is based on a thorough analysis of corporate sustainability efforts, assessing issues such as corporate governance, risk management, climate change mitigation, supply chain standards and branding. It accounts for general as well as industry specific sustainability criteria for each of the 57 sectors defined according to the Industry Classification Benchmark (ICB).

DeLoach pointed out that Sonoco's selection to DJSI World for 2010/2011 was a result of significant improvement in its ranking in a number of economic, environmental stewardship and social responsibility factors. "Overall, the Company's 2010 score improved 14 percent from 2009, which reinforces the progress we're making in all of our global operations. In addition, the Company received best-in-class marks in our industry for advancements in product stewardship, climate strategy, customer relationship management, code of conduct and stakeholder engagement."

About Sonoco

Founded in 1899, Sonoco is a $3.6 billion global manufacturer of consumer and industrial products and provider of packaging services, with about 300 operations in 35 countries, serving customers in some 85 nations. Sonoco is a proud member of the Dow Jones Sustainability World Index.

SOURCE: Sonoco

Sonoco
Roger Schrum, 843-339-6018
This email address is being protected from spambots. You need JavaScript enabled to view it.