Welcome to our dedicated page for Sonoco Products Company news (Ticker: SON), a resource for investors and traders seeking the latest updates and insights on Sonoco Products Company stock.
Sonoco Products Company (NYSE: SON), founded in 1899, is a global leader in providing consumer and industrial packaging solutions. With annualized net sales of approximately $4.8 billion, Sonoco operates in more than 300 facilities across 33 countries, employing around 20,000 people. The company is distinguished by its diverse range of packaging products and services, including paperboard containers, tubes and cores, convenience closures, thermoformed plastic packaging, and engineered molded and extruded plastic products. Sonoco also offers protective, temperature, and retail assurance packaging, serving some of the world’s most recognizable brands in 85 nations.
Recent Achievements and Projects: Over its 100-year-plus history, Sonoco has built a broad portfolio of industrial and consumer packaging solutions, including flexible and rigid plastics, reels and spools, pallets, and composite cans. The company has consistently raised its dividend each year for more than three decades, underscoring its financial stability and commitment to shareholders.
Notable Financial Performance: Sonoco reports its financial results in two primary segments: Consumer and Industrial. The company’s robust financial health is often highlighted in its quarterly and annual reports, showcasing its ability to adapt and thrive in varying market conditions.
Strategic Partnerships: A recent notable partnership includes a Virtual Power Purchase Agreement (VPPA) with ENGIE North America for the Big Sampson Wind Project in Texas. This agreement aims to supply approximately 140 megawatts of electricity per year, meeting about 48% of Sonoco’s U.S. electricity needs by 2025. This move aligns with Sonoco’s commitment to reducing global Scope 1 and Scope 2 emissions by 25% by 2030 from a 2020 baseline.
Awards and Recognitions: Sonoco’s commitment to corporate citizenship and sustainability has earned it numerous accolades, including being listed on the Dow Jones Sustainability Index and named one of America’s Most Responsible Companies by Newsweek. The company was also ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies list for 2022 and included in Barron’s 100 Most Sustainable Companies for the fourth consecutive year.
Investor Relations: Sonoco actively engages with its investors and stakeholders through events like Investor Day, where detailed presentations and Q&A sessions with the executive leadership team offer insights into the company’s strategic direction and financial outlook. A live audio webcast and supporting materials are typically made available on the company’s Investor Relations website.
For more information about Sonoco, visit their official site at www.sonoco.com.
On February 14, 2022, Sonoco (NYSE: SON) announced the departure of two Board members. Marc D. Oken, Chairman of Falfurrias Capital Partners, will not seek reelection due to reaching the mandatory retirement age. Oken has been with the board since 2006 and served on several key committees. Additionally, Lloyd M. Yates, a board member since 2019 and President and CEO of NiSource, Inc., has submitted his resignation, effective March 1, 2022. Yates's departure was not due to any disagreements with the company. Sonoco plans to nominate 12 directors for reelection at the upcoming annual meeting.
Sonoco (NYSE: SON) announced its fourth-quarter and full-year 2021 results, reporting net sales of $1.44 billion for Q4 and $5.59 billion for the full year, marking increases from 2020. Despite a GAAP loss of $(0.86) per diluted share for 2021, Q4 earnings improved significantly to $0.66 per share. The company's acquisition of Ball Metalpack for $1.35 billion is expected to positively impact 2022 earnings, with guidance set between $4.60 and $4.80 per diluted share. Operational cash flow is projected between $690 million to $740 million for 2022.
The Board of Directors of Sonoco (NYSE: SON) has declared a quarterly dividend of $0.45 per share, set for payment on March 10, 2022, to shareholders on record as of February 23, 2022. This marks the 387th consecutive quarter of dividend payments, a testament to the company's commitment to its investors since 1925. Sonoco has raised its dividends for 38 consecutive years, with the next review scheduled for the April board meeting. The company reported annualized sales of approximately $5.6 billion and operates globally across 32 countries.
Platinum Equity has finalized the sale of Ball Metalpack to Sonoco (NYSE: SON) for approximately $1.35 billion. This marks the end of a three-year transformation program that established Ball Metalpack as a standalone entity and enhanced its operations. Since its formation in 2018, the company has invested about $100 million in advanced manufacturing capabilities. With this acquisition, Sonoco aims to expand its packaging portfolio, leveraging Ball Metalpack's expertise in sustainable steel containers.
Sonoco Completes Acquisition of Ball Metalpack
On January 27, 2022, Sonoco (NYSE: SON) finalized its acquisition of Ball Metalpack for $1.35 billion, enhancing its sustainable packaging portfolio. Ball Metalpack, a leader in the metal packaging sector, generated approximately $850 million in revenue and $114 million in adjusted EBITDA in 2021. The acquisition is expected to yield at least $20 million in annual synergies and future tax benefits valued at about $180 million. Sonoco aims to strengthen its cash flow and return value to shareholders.
Sonoco (NYSE: SON) announced a 9% price increase on CPET thermoformed plastic trays and bowls, effective March 1, 2022. This adjustment responds to ongoing inflation affecting raw materials, transportation, labor, and manufacturing costs within its Prepared and Specialty Foods segment. The company aims to offset these increased costs, which have risen significantly over the past year, impacting overall profitability.
Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard tubes and cores, effective March 1, 2022, in the U.S. and Canada. This decision is driven by ongoing market tightness, limited supply of paperboard, and rising inflationary costs for raw materials. Doug Schwartz, the Division VP, emphasized the company's commitment to quality and service amidst these challenges. Sonoco is North America's largest producer of paper-based tubes and cores, serving various industries including paper and textiles.
On January 24, 2022, Sonoco (NYSE: SON) announced its inaugural green bond offering, raising $1.2 billion to support its sustainability strategy. The offering includes three notes due in 2025, 2027, and 2032, totaling $400 million, $300 million, and $500 million respectively. The proceeds will help fund the $1.35 billion acquisition of Ball Metalpack, a leader in sustainable packaging. Sonoco's Green Financing Framework has been endorsed by ISS ESG, confirming its alignment with sustainability goals.
Sonoco (NYSE: SON) has announced a $50 per ton price increase for all types of uncoated recycled paperboard in the U.S. and Canada, effective February 18, 2022. This decision is attributed to strong demand leading to extended order backlogs and inflationary pressures on freight, energy, labor, and manufacturing costs. With annual net sales of about $5.5 billion and a workforce of 19,000 employees across 34 countries, Sonoco aims to create sustainable solutions and is recognized among Fortune's Most Admired Companies for 2021.
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