Sonoco Implementing Price Increase for Uncoated Recycled Paperboard

Rhea-AI Summary

Sonoco (NYSE: SON) is increasing prices for all grades of uncoated recycled paperboard (URB) by $50 per ton, effective March 1, 2021, across the United States and Canada. This decision follows the ongoing challenges of extended order backlogs at its mills and rising input costs, notably freight. Sonoco, with annual sales of approximately $5.4 billion and a workforce of 23,000, emphasizes its commitment to sustainability and its position as a leader in the packaging sector.

Positive

• Price increase of $50 per ton for URB could improve revenue amid rising costs.
• Continued demand indicated by extended order backlogs at mills.

Negative

• Rising input costs, particularly freight, may pressure profit margins.

HARTSVILLE, S.C., Feb. 01, 2021 (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 March 1, 2021.

Sonoco cited the continuation of extended order backlogs at its mills along with continuing inflation of input costs, especially freight, 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

Why is Sonoco increasing prices for uncoated recycled paperboard?

Sonoco is implementing a $50 per ton price increase for uncoated recycled paperboard due to extended order backlogs and rising input costs, especially freight.

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

The price increase will be effective from March 1, 2021.

What is the current annual sales figure for Sonoco?

Sonoco has annualized net sales of approximately $5.4 billion.

How many employees does Sonoco have?

Sonoco employs around 23,000 people worldwide.

What sector does Sonoco rank first in regarding sustainability?

Sonoco ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2020.