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 June 24, 2021, Sonoco (NYSE: SON) announced its acquisition of group annuity contracts from Athene Holding Ltd. This strategic move transfers approximately $900 million in U.S. pension plan obligations for around 8,300 participants to Athene. The transaction aims to mitigate pension liabilities, with funding sourced entirely from plan assets. Following a $488 million lump-sum distribution to 2,250 participants, Sonoco anticipates recognizing $550 million in non-cash, pre-tax pension settlement charges in Q2 2021. Athene will take over administration of benefit payments by September 30, 2021.
On June 24, 2021, Sonoco-Alcore S.a.r.l. announced a price increase for all recycled paperboard grades in EMEA due to rising inflationary pressures. Effective July 1, 2021, these increases are a response to escalating costs related to energy, packaging, and freight, which the company has been absorbing throughout 2021. Phil Woolley, Division VP – Paper Europe, indicated that previous cost increases were only passed on concerning waste paper prices.
Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard tubes and cores, effective from July 26, 2021, due to rising costs for uncoated recycled paperboard, which remains in tight supply. The company is also facing inflationary pressures in adhesives, packaging, and logistics. As the largest producer of paper-based tubes and cores in North America, Sonoco serves various industries, including paper and textiles. The company reported annual net sales of approximately $5.2 billion and strives to create sustainable packaging solutions.
Sonoco (NYSE: SON) announced a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) in the U.S. and Canada, effective July 15, 2021. This decision is driven by strong demand, which has led to order backlogs reaching historical levels, and inflationary pressures from energy, freight, and materials. With annual net sales of approximately $5.2 billion, Sonoco continues to focus on sustainable packaging solutions and has received recognition as one of Fortune’s Most Admired Companies and Barron's 100 Most Sustainable Companies.
Sonoco (NYSE: SON) is expanding its recycling efforts, diverting approximately 3,300 tons of scrap materials annually from landfills by recycling them into 100% recycled paperboard at its three mills in the U.S. This initiative will equate to about 165 truckloads of materials, enhancing the company’s sustainability profile. The move demonstrates Sonoco's capability to recycle its EnviroCan paper containers through both the steel and paper streams. Sonoco is committed to increasing the volume of recycled packaging by 2025.
Sonoco ThermoSafe, a unit of Sonoco (NYSE:SON), has expanded its partnership with Cathay Pacific Cargo for leasing the innovative Pegasus ULD® temperature-controlled shipping container. This container is the first FAA and EASA-approved passive bulk solution for pharmaceuticals, ensuring efficient international transport at lower costs. The Pegasus ULD® features advanced composite materials for enhanced durability, along with a telemetry system for real-time monitoring of environmental conditions. This partnership aims to meet the growing demand for pharmaceutical distribution worldwide.
Sonoco (NYSE: SON) has announced the pricing terms for its cash tender offer to purchase up to $300,000,000 of its 5.75% Senior Notes due 2040. The offer commenced on April 28, 2021, and will expire on May 25, 2021. As of May 12, 2021, Sonoco will accept $63,206,000 of tendered notes, with an early settlement date set for May 13, 2021. The total consideration for validly tendered notes includes an early tender premium of $50 per $1,000 principal amount. Holders are urged to consult advisors regarding the tax and financial implications of the offer.
Sonoco (NYSE: SON) announced that as of May 11, 2021, $63.2 million of its 5.75% Senior Notes due 2040 have been tendered in a cash tender offer, with a total tender cap of $300 million. The offer began on April 28, 2021, and is set to expire on May 25, 2021. Investors who tendered before the early deadline will receive a premium of $50 per $1,000 principal along with accrued interest. The company retains the right to modify the terms of the offer, including the tender cap. Notably, Sonoco's tender offer is not conditioned on a minimum amount of notes being tendered.
Sonoco (NYSE: SON) has announced a $150 million accelerated share repurchase (ASR) agreement with Wells Fargo Bank, utilizing available cash. The initial repurchase will involve approximately 1.75 million shares, with final numbers to be based on the company’s share price during the repurchase period. This ASR aligns with Sonoco's $350 million share repurchase authorization approved on April 20, 2021, reflecting the company's strong financial position and commitment to returning cash to shareholders while investing in its core businesses.
Sonoco (NYSE: SON) announced a 9.5% price increase for all rigid paper containers and closures in North America, effective June 3, 2021. This decision, according to Ernest Haynes, is essential to address rapidly rising costs for key raw materials such as adhesives, laminate structures, recovered paper, and steel. The company aims to maintain supply continuity amidst supply chain challenges and inflationary cost pressures exacerbated by events like Winter Storm Uri. Sonoco operates globally, with annualized net sales of approximately $5.2 billion.
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