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 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.
Sonoco (NYSE: SON) has announced a cash tender offer to buy back up to $300 million of its 5.75% Notes due 2040. The company will utilize available cash for this purchase. The Offer's expiration is at 11:59 p.m. on May 25, 2021, and includes an early tender deadline of 5:00 p.m. on May 11, 2021. Holders who tender their Notes by this deadline will receive a total consideration, which incorporates an early tender premium of $50 per $1,000. The company reserves the right to modify the terms of the Offer at any time.
Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard tubes and cores, effective May 24, 2021, in the U.S. and Canada. This decision stems from ongoing rises in costs for uncoated recycled paperboard and significant inflation in adhesives, packaging, and logistics. As the largest producer of paper-based tubes and cores in North America, Sonoco continues to address supply challenges for its primary raw materials. The company remains committed to sustainable practices while serving various industries.
Sonoco (NYSE: SON) reported its Q1 2021 financial results, posting GAAP earnings of $0.71 per diluted share, down from $0.80 in 2020. The company's net sales increased to $1.35 billion, up 3.8% compared to $1.30 billion last year. First-quarter cash flow from operations improved significantly to $138.7 million, a 58% increase year-over-year. Guidance for Q2 2021 estimates base earnings per share between $0.82 and $0.88. However, the company anticipates a net GAAP loss due to expected pre-tax settlement charges of approximately $560 million related to its pension plan.
Sonoco's Board has declared a quarterly dividend of $0.45 per share, payable on June 10, 2021, to shareholders on record by May 10, 2021. This marks the 384th consecutive quarter of dividends, with a history dating back to 1925. The 2.8% yield significantly exceeds the S&P 500 average. Additionally, a new $350 million share repurchase authorization has been approved, enhancing Sonoco's commitment to returning cash to shareholders while balancing investments in its core businesses.
Sonoco (NYSE: SON) has sold its U.S. Display and Packaging business to Hood Container Corporation for $80 million. The divestiture is part of Sonoco's strategy to focus on its core Consumer and Industrial packaging sectors. In 2020, the sold business generated net sales of approximately $135 million and operated 12 facilities with around 450 employees. Sonoco plans to reinvest proceeds from this sale to enhance shareholder value and support its growth initiatives.
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 April 26, 2021. This decision is attributed to strong demand and significantly longer backlogs, along with rising input costs including freight and papermaking chemicals. The company, which has annualized net sales of approximately $5.2 billion, aims to adapt to market conditions and maintain pricing power amidst inflationary pressures.
On March 16, 2021, Sonoco ThermoSafe partnered with Unilode Aviation Solutions to enhance the maintenance, repair, and handling of their Pegasus ULD, a pioneering FAA and EASA-approved temperature-controlled container for pharmaceuticals. This collaboration aims to optimize the distribution of temperature-sensitive products globally, particularly during the COVID-19 vaccine rollout. The Pegasus ULD features advanced composite materials and a telemetry system for real-time monitoring, ensuring safe transport at reduced costs. Sonoco ThermoSafe continues to innovate in temperature assurance packaging.
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