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Sonoco, one of the largest diversified global packaging and services companies, today announced that its retail point-of-purchase display and packaging business won two of the top awards at the inaugural Retail Innovation Fair presented by the Wake Forest University Center for Retail Innovation.

Sonoco received the Best Consumer Engagement Award and the People's Choice Award at the CVS Caremark-sponsored event, which was themed, Marketing to an Aging Population. The event showcased the latest retail marketing ideas for engaging today's senior shoppers and attracted exhibitors, sponsors and attendees representing many of the best-known names in retail.

"There's a silver tsunami coming as the Baby Boomer population become seniors," said Professor Roger Beahm, executive director of the Center for Retail Innovation. "As the size of this demographic grows, so do the retail marketing opportunities."

Sonoco presented its award-winning exhibit in a "total store solution" format, integrating a mix of in-store promotional packaging and merchandising displays to highlight industry best practices for marketing to seniors. The CVS Caremark Best Consumer Engagement Award was chosen by a panel of CVS executives, while the People's Choice Award was voted on by event attendees.

"Our retail display and packaging team does an outstanding job helping our customers maximize their in-store branding and sales opportunities," said Jeff Tomaszewski, division vice president and general manager, Sonoco Display and Packaging. "To receive further validation for our expertise in marketing to seniors in particular is extremely gratifying."

SOURCE Sonoco

As the world's largest producer of composite cans, Sonoco, is helping Melitta USA move from traditional metal cans to high-performance composite cans that deliver better shelf appeal and a reduced environmental footprint.

Melitta, which has been roasting premium European-style coffee at its location in Cherry Hill, N.J., for over 40 years, has converted its 603- and 401-volume coffee cans to Sonoco's lighter weight paperboard composite container made from recycled and recyclable content. Sonoco's rigid paperboard containers weigh less than metal cans, making them less expensive to ship, and they perform as well as metal canisters in abuse resistance and shelf life.

"With the new cans, we're offering consumers the same premium product in a package that they can feel good about purchasing – a lighter weight option made from renewable and recyclable materials," said Jeff Bridges, vice president, Melitta USA.

"Additionally, we were very pleased with the conversion process," Bridges continued. "Over the past two years, Sonoco's team of dedicated quality and technical experts has provided us with the most seamless transition possible."

The can is spiral-wound from 100-percent recycled paperboard and includes a high-barrier liner that locks out moisture and locks in product aroma and taste. Because there are no ribs on the new can, the smooth surface provides superior graphic bill boarding and shelf appeal.

Howard Coker, vice president, Global Rigid Paper and Closures, noted, "Sonoco's composite coffee can provides Melitta not only with reliable product protection and superior branding, but also a smaller environmental footprint."

Sonoco, one of the largest diversified global packaging companies, has announced that 19 of its Industrial Carriers (North America) facilities successfully diverted over 95 percent of  landfill waste in 2011. These 19 facilities bring the total number of Sonoco plants to 30. Four of the 19 plants have achieved landfill-free status by sending less than one percent to landfill, while the other 15 have reached five percent or less.

"One of our Company-wide sustainability initiatives is to take 10 percent of our global manufacturing facilities landfill free by 2015," said Harris DeLoach Jr., chairman and chief executive officer. "To see this level of buy-in by one of our divisions is very encouraging, and raises the bar for all Company divisions."

"I am very proud of our group," said James Harrell, vice president, Industrial Carriers NA. "To achieve this level of landfill diversion, the entire Industrial Carriers division had to coordinate its efforts across the United States and Canada. They've been tracking landfill tonnage for over two years, working to decrease and divert wastes, and the time and work they've put into this is evident in the results."

Facilities recognized included:

Gold Star Awards - Opp, Ala.; Cap de la Madeleine, Quebec; Delta, British Columbia; West Chicago, Ill.

Silver Star Awards - Neenah, Wis.; Hartsville Converting, S.C.; Cincinnati, Ohio; Baton Rouge, La.; Elon, N.C.; Robesonia, Pa.;Pittsfield, Maine; Akron, Ind.; Morganfield, Ky.; Berthoud, Colo.; Boone, Iowa; City of Industry, Calif.; Lewiston, Idaho; Woodland, Wash.; St. John, Neb.

Created by Sonoco Recycling, a leader in recycling and a unit of Sonoco, to recognize customer and Sonoco facilities for achieving significant milestones in landfill diversion and waste stream reduction, the Sonoco Sustainability Star Award program is composed of three tiers:

• Gold Star Awards, which recognizes facilities as landfill free for achieving 99 percent landfill diversion;
• Silver Star Awards, which are given to facilities achieving 95 percent landfill diversion; and
• Bronze Awards, which recognize facilities that have made significant waste reduction achievements.

To see the full list of Star Award winners and learn more about our Sonoco Sustainability Star Award program, administered by Sonoco Recycling, visit http://www.sonoco.com/productsservices/sonocorecycling/sustainabilitystarawards.aspx or stop by our booth #S-1562 at Pack Expo.

A recycling leader with 50 locations and expertise worldwide, Sonoco Recycling annually collects approximately 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 six material recovery facilities (MRFs) and serves nearly 150 communities in which curbside-collected residential and commercial materials are processed. The Company also provides recycling programs which identify waste reduction opportunities that reduce operating expenses for many of the largest consumer product companies in the U.S.

2011 acquisition of Tegrant Corporation triggers need for updated branding

Through the years, Sonoco (NYSE: SON) has built its reputation on its ability to deliver innovative packaging and high-quality service to customers worldwide. While these objectives will always remain top priorities, the Company is working harder than ever to better understand customers' opportunities and respond to their needs in several key impact areas.

"The idea behind 'Delivering on the Promise' is that we work to better understand the needs of our customers beyond manufacturing expectations," said Jack Sanders, Sonoco president and chief operating officer. "We work very hard at customer engagement – talking with them about their needs for shelf presence, product protection, visibility and security, and even recycling. Overall, this concept provides impact to our customers and helps satisfy their needs in a way that our competition will be challenged to match."

At Pack Expo International 2012, Sonoco will showcase how it differentiates itself from its packaging peers by delivering expertise and solutions in 12 impact categories that customers have indicated are valued in their businesses. These categories include:

Interactive Package Development – Next-generation packaging, including products for dosing and dispensing, packages with easy-open and reclose features and promotional ink technologies for film and paper laminates.

Right-size Packaging – Optimized packaging solutions for specific customer needs, ensuring the right amount of packaging – no more, no less.

Product Protection – Ultimate in product protection and cost management using a full range of materials – paper, foam, molded and formed plastics, wood or steel.

Shelf Appeal – Packaging and displays that deliver a clear brand message and cause shoppers to stop and take notice.

Convenience – Convenience features across a variety of packaging platforms: easy open and reclose, trays for microwaving or steaming and formats for portion control.

Product Safety – A commitment to developing packaging that delivers products to consumers safely – without damage or contamination.

Retail Merchandising – Delivering comprehensive, scalable, turn-key program management from high-impact packaging and display design through retail execution.

Theft Deterrence – Innovative and reliable theft-deterrent solutions and damage protection though blister packaging, radio frequency clamshell packaging, fusion sealing and electronic security labeling.

Temperature Assurance – Packaging for safe and efficient transport of temperature-sensitive products.

Total Solutions – A proven approach setting the industry standard for innovative, consumer-preferred products and seamless, single-source service.

Recycled Content/Recycling – An integrated system focused on creating value through community curbside collection, material recovery facilities, recycled paperboard mills and a broad range of expertise in use of recycled materials.

Recycling and Landfill Diversion – Expert service and customized recycling solutions to help customers achieve sustainability goals.

Pack Expo attendees are invited to learn more about Sonoco by visiting the Sonoco exhibit at Booth #S–1562 in the South Hall of McCormick Place. For additional information about Sonoco or its daily Pack Expo activities, visit our website at www.sonoco.com/packexpo2012.

SOURCE Sonoco

Sonoco, one of the largest diversified global packaging companies, announced today that its CorrFlex point-of-purchase (POP) display and packaging services business will now operate under a new brand, Sonoco Display and Packaging.

Sonoco acquired CorrFlex in 2004. The business designs, manufactures, assembles, packs and distributes temporary, semi-permanent and permanent POP displays. It also provides contract packaging, co-packing and fulfillment and supply chain services for major consumer product companies around the world.

"When we purchased CorrFlex, it made sense at the time to maintain the CorrFlex name because of its brand recognition in the marketplace. But our brand today has become more aligned with Sonoco, and it only makes sense that we make this transition," said Jeff Tomaszewski, general manager, Sonoco Display and Packaging.

"Clearly, the new name and brand more accurately describe what we do – display and packaging. But it also allows us to better leverage the Sonoco name – its long history, financial strength and reputation as a low-cost global leader in customer-preferred packaging."

Sonoco Display and Packaging operates 20 manufacturing and packaging facilities in the United States, Poland, Mexico and Brazil.

SOURCE Sonoco

Sonoco, one of the largest diversified global packaging companies, today announced that Marty F. Pignone has been named vice president, Paper North America, effective December 1, 2012. Pignone will replace John M. Grups, 61, division vice president and general manager, who will be retiring from Sonoco following a 36-year career.

In this position, Pignone, 55, will have responsibility for Sonoco's 12 uncoated recycled paperboard mills in the United States,Canada and Mexico and related support functions. He reports to John Colyer, vice president, Paper and Industrial Converted Products.

"Following John's decision to retire after nearly four decades with Sonoco, it was important that we installed a seasoned paper manufacturing veteran to head this manufacturing-intensive operation," said Colyer. "Marty previously led our North American paper mills for eight years and implemented several key safety and operating excellence initiatives that improved performance during his tenure. In this new role, we're asking him to improve operating performance and safety near-term, while further developing our paper manufacturing management team."

Pignone joined the Company in 1997 and was elevated to division vice president and general manager of Paper, North America in 2000. He became vice president, Global Manufacturing in 2009 and later vice president, Operating Excellence, where he has led the Company's global manufacturing improvement initiatives as well as supply management and product quality improvement. Pignone graduated in 1978 from the University of Massachusetts, Amherst, with a Bachelor of Science in mechanical engineering and received a Master of Science in business administration from Stanford University in 1991. Prior to joining Sonoco he worked for General Electric and Kodak.

Grups' retirement is effective March 31, 2013. During the transition, he will work with Pignone on several manufacturing initiatives. Grups took over the Company's Primary Materials Group in September 2011 after serving as staff vice president, Operating Excellence for eight years. Grups is a 1974 graduate of the University of Missouri with a Bachelor of Science in mathematics and a Bachelor of Arts in philosophy. He also holds a master's degree from Purdue University in industrial management.

SOURCE Sonoco

Sonoco Recycling, LLC,  a unit of Sonoco (NYSE: SON) and one of the largest packaging recyclers in North America, has completed $2 million in upgrades at the Onslow County, N.C., materials recovery facility (MRF), allowing the facility to process a higher volume of recyclables.

"Onslow County is one of the premier coastal counties of North Carolina and environmental stewardship has always been of the utmost importance," said Scott Bost, solid waste director, Onslow County. "With that in mind, we are extremely pleased to partner with Sonoco Recycling to provide long-term recycling capabilities to the citizens of the Onslow County area. Sonoco Recycling's expertise and many years of experience in the recycling industry will continue to move the County forward with efficient and sustainable waste management for Onslow County."

Ray Howard, general manager, Sonoco Recycling, agrees. "In the year that we've been here, we've found the Onslowcommunity to be very progressive in the areas of sustainability and recycling. We are excited to provide them with expanded recycling capabilities and help the County continue to move forward in these areas."

Howard continued, "In addition to new equipment, the Company also added an education room, and has been providing tours to approximately three classes of students per week. Currently, the tours are open to students of all ages, including first grade through high school seniors."

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 six MRFs and serves more than 125 communities in which curbside-collected residential and commercial materials are processed. The Company also provides recycling programs which identify waste reduction opportunities that reduce operating expenses for many of the largest consumer product companies in the U.S.

SOURCE Sonoco

Sonoco, one of the largest diversified global packaging companies, today reported financial results for its 2012 second quarter, ending July 1, 2012.

Second Quarter Highlights

• Second quarter 2012 GAAP earnings per diluted share were $.50, compared with $.52 in 2011.
• Second quarter 2012 GAAP results include after-tax charges of $.08 per diluted share, driven by previously announced restructuring activities.
• Base net income attributable to Sonoco (base earnings) for second quarter 2012 was $.58 per diluted share, compared with $.60 in 2011. (See base earnings definition and reconciliation later in this release.) Sonoco previously provided second quarter base earnings guidance of $.55 to $.60 per diluted share.
• Second quarter 2012 net sales were a record $1.20 billion, up 7 percent, compared with $1.13 billion in 2011.

Earnings Guidance

• Third quarter 2012 base earnings are expected to be $.62 to $.66 per diluted share.
• Guidance for full-year 2012 base earnings is revised to $2.34 to $2.39 per diluted share.

Second Quarter Review

Commenting on the Company's second quarter results, Chairman and Chief Executive Officer Harris E. DeLoach Jr. said, "Sonoco's second quarter results met our expectations despite the continuing tough global economic conditions. Base earnings showed sequential improvement for the second consecutive quarter and gross profits increased 13 percent year over year while base earnings before interest and taxes (EBIT) improved by 6 percent. Base earnings were down year over year by a little less than 2 percent. The benefits to base earnings from significantly improved productivity, prior year acquisitions and a positive price/cost relationship were largely offset by lower volumes, a negative mix of business and higher pension, interest and income tax expenses. However, absent the impact of a stronger dollar, year-over-year base earnings would have been essentially unchanged.

"Our Consumer Packaging segment's second quarter operating profit improved 6 percent year over year, but was down 15 percent from the first quarter largely due to normal seasonality. The segment's year-over-year improvement was a result of productivity gains and a positive price/cost relationship, partially offset by lower volumes, negative mix and higher pension, labor and other expenses. Operating profits from our Packaging Services segment declined 54 percent from the second quarter of 2011, and 17 percent from the first quarter.

Year-over-year results were negatively impacted by the previously announced loss of a large contract packaging customer and a stronger dollar.

"In our Paper and Industrial Converted Products segment, second quarter operating profits were down 2 percent from last year's second quarter, but were up 23 percent from the first quarter. The year-over-year decline was driven by higher pension, labor and other expenses and a negative impact from exchange rates. These factors were partially offset by improved productivity, a positive price/cost relationship and slightly better volume, coming primarily from improved paper operations.

"Operating profits in our new Protective Packaging segment, created as a result of last year's acquisition of Tegrant Holding Corporation, improved 66 percent from the first quarter. Tegrant's operations comprise the majority of this segment and we are very pleased with the improvement we're seeing there in operating efficiencies and the progress being made in the integration. Year-over-year results in the legacy protective packaging operation improved slightly as a small decline in volume was more than offset by improved productivity."

GAAP net income attributable to Sonoco in the second quarter was $51.3 million, or $.50 per diluted share, compared with$53.4 million, or $.52 per diluted share, in 2011. Base earnings were $59.7 million, or $.58 per diluted share, in the second quarter, compared with $60.8 million, or $.60 per diluted share, in 2011. 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.

Items excluded from base earnings in the second quarter of 2012 totaled $8.3 million, after tax, or $.08 per diluted share. This included restructuring expenses and asset impairment stemming from previously announced plant closures and manufacturing rationalization efforts in Germany, Canada and the United States. Excluded from base earnings in the second quarter of 2011 were after-tax restructuring and other charges totaling $7.4 million, or $.08 per diluted share, largely attributable to the disposition of the Company's Brazilian plastics operations and closure of a Canadian flexible packaging operation. Additional information about base earnings and base earnings per diluted share, along with a reconciliation to the most closely applicable GAAP financial measures, is provided later in this release.

Net sales for the second quarter were $1.20 billion, compared with $1.13 billion in the same period in 2011. This 7 percent increase was due to sales from acquisitions of $124 million, almost all of which is related to Tegrant, and higher selling prices, partially offset by lower volume/mix and a $41 million negative impact from foreign currency translation.

Gross profits were $217 million in the second quarter of 2012, compared with $191 million in the same period in 2011. Gross profit as a percent of sales was 18.0 percent, compared with 16.9 percent in the same period in 2011. The improvement in gross profits was due to productivity improvements and a positive price/cost relationship, partially offset by lower volumes, a negative shift in the mix of business and higher labor and other costs. The Company's selling, general and administrative (SG&A) expenses increased 19 percent year over year in the quarter, primarily due to added costs from the acquired Tegrant businesses. SG&A expenses were 9.9 percent of net sales in the 2012 period, compared with 8.8 percent in 2011.

Cash generated from operations in the second quarter was $42.9 million, compared with $45.9 million in the same period in 2011. Capital expenditures net of proceeds and cash dividends were $54.9 million and $30.2 million, respectively, during the second quarter of 2012, compared with $34.0 million and $28.9 million, respectively, during the same period in 2011.

Year-to-date Results

For the first six months of 2012, net sales increased 8 percent to $2.41 billion, compared with $2.25 billion in the first half of 2011. Net income attributable to Sonoco for the first six months of 2012 was $94.4 million, or $.92 per diluted share, compared with $110.8 million, or $1.08 per diluted share, in the first half of 2011. Earnings in the first half of 2012 were negatively impacted by after-tax restructuring and other charges of $19.1 million, or $.19 per diluted share, compared with $8.5 million, or$.09 per diluted share, in the same period in 2011.

Base earnings for the first half of 2012 were $113.5 million, compared with $119.3 million in the same period in 2011. This 5 percent year-over-year decline in base earnings stemmed from lower volume, a negative mix of business and higher pension, labor and other expenses. These negative factors were partially offset by productivity improvements, acquisitions and a positive price/cost relationship.

Gross profit increased 12.5 percent year over year to $433.4 million, compared with $385.3 million in 2011. Gross profit as a percent of sales increased in the first half of 2012 to 17.9 percent, compared to 17.2 percent in 2011.

For the first six months of 2012, cash generated from operations was $144.4 million, compared with $32.1 million in the same period in 2011. The first half cash flow reflects pension and postretirement benefit plan contributions of $58.9 million, compared with $110.5 million in the first half of 2011. Cash flow from operations also improved during the first half of 2012 due to less management incentives paid in comparison to last year. Capital expenditures and cash dividends were $102.0 millionand $59.3 million, respectively, during the first half of the year, compared with $70.5 million and $57.0 million, respectively, for the same period in 2011.

At the end of the first half of 2012, total debt was approximately $1.32 billion, a $32.0 million increase from the Company's year-end total debt of $1.29 billion. The Company's debt-to-total capital ratio was 47.4 percent, which is unchanged from year end 2011. Cash and cash equivalents as of the end of the first half of 2012 was $196 million, compared with $176 million at the end of the year.

Corporate

Net interest expense for the second quarter of 2012 increased to $15.3 million, compared with $8.2 million during the same period in 2011. The increase was due to higher debt levels as a result of the acquisition of Tegrant. The effective tax rate for the second quarter of 2012 was 35.3 percent, compared with 32.1 percent for the same period in 2011. The effective tax rate on base earnings was 32.8 percent and 31.9 percent in the second quarters of 2012 and 2011, respectively.

Third Quarter and Full-Year 2012 Outlook

Sonoco expects third quarter 2012 base earnings to be in the range of $.62 to $.66 per diluted share. Base earnings in the third quarter of 2011 were $.66 per diluted share. For the full-year 2012, base earnings are projected to be in the range of $2.34 to $2.39 per diluted share. The Company had previously provided full-year guidance of $2.34 to $2.44 per diluted share.

The Company's base earnings guidance assumes sales demand will remain near current levels, adjusted for seasonality. Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the global economy and fluctuating raw material prices and other costs, actual results could vary substantially.

Commenting on the Company's outlook, DeLoach said, "We expect third quarter base earnings to continue to improve sequentially and possibly could be near our results for the third quarter of 2011, which benefited from some lower incentives, taxes and other favorable actions. While we are encouraged by the progression of improvement in many of our businesses in the first half of the year, general economic conditions continue to be challenging and our customers' long-term order patterns remain difficult to predict. Accordingly, we are focused on implementing operating excellence initiatives to improve our manufacturing productivity and working to further reduce costs and control spending. Also, we expect to complete several important growth projects this year, including the third-quarter start-up of our new rigid plastics container plant in Columbus, Ohio. Finally, efforts to successfully integrate our Protective Packaging businesses continue and we expect to meet our objective of achieving annualized synergies of $12 million by year end."

SOURCE Sonoco

For the full release and tables please download vis the link below

Sonoco will implement a surcharge of 8.6 percent for its nailed wood reels, effective July 1, 2012. The surcharge is necessary to offset the steady increase in lumber costs experienced over the past two years.

"We have chosen to use a surcharge rather than changing our base price because we feel lumber costs should soften later this year," said Greg Powell, general manager, Sonoco Reels. "Our plan will be to adjust the surcharge to reflect any future decline in lumber pricing. At the same time, should the cost for lumber continue to increase, our surcharge would be adjusted 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's website or contact Sonoco Reels at +800/633-3962.

SOURCE Sonoco