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 8% for all paperboard tubes and cores in the U.S. and Canada, effective September 10, 2021. This decision is driven by significant market tightness and inflationary cost pressures on primary raw materials, including uncoated recycled paperboard and adhesives. Doug Schwartz, Division Vice President, emphasized the company's commitment to quality and service despite these challenges. Sonoco is the largest producer of paper-based tubes and cores in North America, serving various industries.
Cascades Sonoco has achieved SQF certification for its Birmingham facility, a significant milestone confirming adherence to the Safe Quality Food standards recognized globally for food safety. This certification enhances the company's ability to assure customers about the safety and reliability of their products across the food supply chain, including food manufacturing and animal feed production.
Jeff Stacy, Market Segment Manager, emphasized the importance of this certification in demonstrating their commitment to food safety and operational excellence.
Sonoco (NYSE: SON) announced a $70 per ton price increase for all grades of uncoated recycled paperboard (URB) in the U.S. and Canada, effective September 7, 2021. This decision responds to strong demand within the company’s mill network, resulting in historic order backlogs, and ongoing inflationary pressures affecting papermaking costs. Founded in 1899, Sonoco serves global brands with approximately $5.2 billion in annual net sales and a workforce of 19,000 employees across 34 countries.
Sonoco (NYSE: SON) released its 2020-21 Corporate Responsibility Report, outlining 2030 commitments to enhance sustainability by reducing energy, greenhouse gas emissions, water usage, and waste. The report emphasizes ambitious emissions reduction targets approved by the Science Based Targets initiative. Key initiatives include an investment of $115 million in Project Horizon, aimed at becoming the lowest-cost producer of uncoated recycled paperboard with a capacity of 180,000 tons and significant environmental benefits. Elizabeth Rhue will lead sustainability initiatives.
Sonoco (NYSE: SON) reported a GAAP net loss of $(3.34) per diluted share for Q2 2021, compared to earnings of $0.55 in the same period last year. The loss included $418.7 million in after-tax charges, primarily due to a non-cash pension settlement charge. However, base earnings increased to $0.84 per diluted share from $0.79. Q2 net sales rose 11% to $1.38 billion. The company expects Q3 base earnings between $0.87 and $0.93 and full-year earnings at $3.50 to $3.60 per share, maintaining previous guidance. Sonoco also committed to significant greenhouse gas emissions reductions by 2030.
The Board of Directors of Sonoco (NYSE: SON) declared a quarterly dividend of $0.45 per share, payable on September 10, 2021, to shareholders of record as of August 10, 2021. This marks the 385th consecutive quarter of dividend payments, dating back to 1925, and the company has raised dividends for 38 consecutive years. The dividend yield stands at 2.73%, significantly higher than the S&P 500 Index. Sonoco, a leading provider of packaging solutions, reported annualized net sales of approximately $5.2 billion.
Sonoco (NYSE: SON) has announced its commitment to reduce greenhouse gas emissions as part of its environmental initiative, aligning with the Paris Climate Agreement. The company aims to cut absolute scope 1 and 2 emissions by 25% by 2030 from a 2020 base year and scope 3 emissions by 13.5% from a 2019 base year. Sonoco is also pursuing a goal of achieving net-zero emissions by 2050. The initiative is backed by the Science Based Targets initiative (SBTi) and will involve sustainability metrics integrated into business strategies.
Sonoco (NYSE: SON) announced significant advancements in its Project Horizon, investing $115 million to convert its corrugated medium machine in Hartsville, S.C. to an uncoated recycled paperboard (URB) operation, with a target annual capacity of 180,000 tons. The transition is expected to be completed by Q2 2022 and will include upgrades to the infrastructure. The project aims for $30 million in annual cost savings by 2023, while exiting the corrugated medium market and shutting down two URB machines, reducing capacity by 70,000 tons. Sonoco operates 11 mills and expects URB capacity to stabilize at 1.2 million tons.
On June 30, 2021, Sonoco (NYSE: SON) announced a new five-year $750 million revolving credit facility, replacing its previous $500 million line established in 2017. The Credit Agreement enhances financial flexibility and features similar terms. This facility will support Sonoco’s $500 million commercial paper program, with a borrowing margin of 125 basis points based on current credit ratings. The banking syndicate includes notable institutions like BofA Securities and JPMorgan Chase. Sonoco, founded in 1899, reported approximately $5.2 billion in annual net sales.
Sonoco Protective Solutions, a division of Sonoco (NYSE: SON), is expanding its Sonopost® packaging technology into Europe with a new manufacturing site in Sochaczew, Poland, set to open in July-August 2021. This technology utilizes 100% recycled paperboard corner posts designed for protecting large appliances and HVAC units, addressing sustainability concerns. The product's recyclable nature aids manufacturers in reducing plastic waste. Adam Wood, VP and GM, emphasized the significance of sustainability in European manufacturing.
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