Sonoco Implementing Price Increase for Uncoated Recycled Paperboard

Rhea-AI Summary

Sonoco (NYSE: SON) is raising prices by $50 per ton for all grades of uncoated recycled paperboard in the U.S. and Canada, effective November 16, 2020. This decision comes in response to significantly longer backlogs at its mills and ongoing inflation in input costs, particularly for freight and papermaking chemicals. Sonoco, with annualized net sales of approximately $5.4 billion, operates in 36 countries and is known for its commitment to sustainable practices.

Positive

• Price increase of $50 per ton may improve revenue amid rising costs.
• Company's strong market position and demand for recycled paperboard.

Negative

• Longer backlogs at mills could indicate operational inefficiencies.
• Inflation of input costs may pressure profit margins.

HARTSVILLE, S.C., Oct. 19, 2020 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it is implementing a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) in the United States and Canada, effective with shipments beginning November 16, 2020.

Sonoco cited significantly longer backlogs at its mills along with continuing inflation of input costs, especially freight and papermaking chemicals as the drivers for this pricing action.

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 being included in Barron’s 100 Most Sustainable Companies. For more information, visit www.sonoco.com.

FAQ

What is Sonoco's new price for uncoated recycled paperboard?

Sonoco is implementing a $50 per ton price increase for uncoated recycled paperboard.

When will the price increase for Sonoco's paperboard take effect?

The price increase will be effective for shipments beginning November 16, 2020.

What factors led to Sonoco's price increase announcement?

The price increase is attributed to longer backlogs at mills and rising input costs, particularly freight and papermaking chemicals.

What is Sonoco's annualized net sales figure?

Sonoco has annualized net sales of approximately $5.4 billion.

In how many countries does Sonoco operate?

Sonoco operates in 36 countries worldwide.