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.
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.
Sonoco (NYSE: SON) has successfully priced its inaugural green bond offering, totaling $1.2 billion. This includes $400 million in Senior Unsecured Notes due 2025, $300 million due 2027, and $500 million due 2032. The proceeds will mainly finance the acquisition of Ball Metalpack, enhancing Sonoco's sustainability efforts. The offering is expected to close on January 21, 2022. J.P. Morgan and Wells Fargo are joint book-running managers for this issuance, which supports Sonoco's commitment to sustainable packaging solutions.
Sonoco (NYSE: SON) will hold its quarterly investor conference calls on specific dates in 2022. Key dates include:
- Q4 2021 Results: February 10, 2022 at 11 a.m. ET
- Q1 2022 Results: April 21, 2022 at 11 a.m. ET
- Q2 2022 Results: July 21, 2022 at 11 a.m. ET
- Q3 2022 Results: October 20, 2022 at 11 a.m. ET
Investors can access the live conference calls via Sonoco's Investor Relations website. The company reported annual net sales of approximately $5.5 billion and operates in over 300 locations worldwide.
Sonoco Recycling, a division of Sonoco (NYSE: SON), has acquired American Recycling of Western North Carolina, a well-capitalized recovered paper recycler in Asheville, N.C. This acquisition, expected to generate around $9 million in sales for 2021, enhances Sonoco's mill operations by providing a stable, lower-cost supply of recovered fiber. The facility processes about 30,000 tons of recovered fiber annually and is strategically located 65 miles from Sonoco's Newport, TN, paperboard mill. This move supports Sonoco's commitment to sustainability and growth.
On December 20, 2021, Ball Corporation (NYSE:BLL) announced the sale of Ball Metalpack to Sonoco (NYSE:SON) for approximately $1.35 billion. The sale is subject to regulatory review and is expected to close in Q1 2022. Ball Metalpack, a joint venture between Platinum Equity and Ball Corporation, focuses on sustainable steel containers for various products. The transaction aims to enhance shareholder value through potential share buybacks and dividends, following a successful transformation program over three years that invested $100 million in operational improvements.
Sonoco (NYSE: SON) has announced its definitive agreement to acquire Ball Metalpack for $1.35 billion in cash, enhancing its Consumer Packaging franchise. This acquisition is projected to boost cash flows and earnings, with Ball Metalpack expected to generate $850 million in revenue and $111 million in EBITDA for 2021. The deal offers an estimated tax benefit of $180 million. Sonoco anticipates annual synergies of at least $20 million from procurement and savings. The transaction is expected to close in Q1 2022, subject to regulatory approval.
Sonoco ThermoSafe, a unit of Sonoco (NYSE: SON), has partnered with Asiana Airlines to lease the Pegasus ULD® temperature-controlled shipping container. This innovative container, the first FAA and EASA-approved passive bulk ULD for pharmaceuticals, will enhance shipping efficiency and reduce costs for pharmaceutical freight forwarders. The Pegasus ULD® features a lightweight, damage-resistant design and real-time telemetry for monitoring temperature and environmental conditions. This collaboration aims to strengthen cold chain logistics, particularly in Incheon, South Korea.
Sonoco (NYSE: SON) announced a strategic plan targeting $1 billion in annual EBITDA by 2026 during its investor meeting on December 10, 2021. The company projects its 2022 base earnings per diluted share to be between $3.85 and $3.95, with an anticipated significant improvement in free cash flow. Key strategies include capital investment, operational efficiencies, and potential acquisitions. Despite a projected GAAP loss for 2021, Sonoco expects strong operating cash flow of $520-$550 million. The firm is committed to sustainability goals, aiming for a 25% reduction in greenhouse gas emissions by 2030.
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