Sonoco Implementing Price Increase for All Paperboard Tubes and Cores

Rhea-AI Summary

Sonoco (NYSE: SON) announced an 8% price increase for all paperboard tubes and cores, effective November 23, 2020, across the United States and Canada. This move aims to offset recent increases in paperboard prices and inflationary costs that the company cannot absorb. Sonoco is the leading producer of paper-based tubes and cores in North America, serving various industries including paper and films. With annual net sales of around $5.4 billion and a workforce of 23,000 across 36 countries, Sonoco emphasizes sustainable practices in its operations.

Positive

• Implementation of an 8% price increase may improve revenue stability amid rising costs.
• Maintains position as the largest producer of paper-based tubes and cores in North America.

Negative

• The need for a price increase signals rising operational costs and inflationary pressures.

HARTSVILLE, S.C., Oct. 21, 2020 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced that it is implementing a price increase for all paperboard tubes and cores by 8 percent, effective with shipments in the United States and Canada on or after November 23, 2020.

“This price increase is necessary to recover recently announced paperboard price increases and other inflationary costs which we are unable to absorb,” said Mike Thompson, Director of Sales and Marketing, Tubes and Cores North America.

Sonoco is the largest producer of paper-based tubes and cores in North America which are used to serve the paper, films and specialty industries. For more information about Sonoco’s complete line of paperboard tubes and cores or to learn more about current pricing, please visit the Company’s website (www.sonoco.com) or contact the Company at +800-377-2692.

About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $5.4 billion, the Company has 23,000 employees working in approximately 300 operations in 36 countries, serving some of the world’s best known brands in some 85 nations. Sonoco is committed to creating sustainable products, services and programs for our customers, employees and communities that support our corporate purpose of Better Packaging. Better Life. The Company ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2020 as well as Barron’s 100 Most Sustainable Companies. For more information, visit www.sonoco.com. 

FAQ

What is the reason for Sonoco's price increase announced on October 21, 2020?

Sonoco is implementing an 8% price increase to recover from recent paperboard price hikes and inflationary costs.

When will Sonoco's price increase for paperboard tubes and cores take effect?

The price increase will be effective for shipments on or after November 23, 2020.

How much is Sonoco increasing its prices for paperboard tubes and cores?

Sonoco is increasing prices by 8%.

What impact does the price increase have on Sonoco's financial performance?

The price increase aims to improve revenue stability in light of rising operational costs.